Wabush Scully Mine in Labrador closing, 500 jobs affected

WABUSH, N.L. – The Wabush Scully Mine in Labrador will be idled by the end of March by Cliffs Natural Resources as the company partly blames the cost of running the operation for its decision.

The mine’s closure will affect 500 workers at the iron ore mine near Wabush and at the company’s Pointe Noire rail and port operation in Quebec.

Company president Gary Halverson says it has seen prices drop over the past three years while the costs of running the mine in western Labrador have escalated.

The company’s website says the Scully mine and concentrator have been in operation since 1965.

Premier Tom Marshall said he is disappointed by the company’s decision and will travel to Wabush this week to discuss the mine’s closing.

Halverson said the company had made “significant” capital investments in the mine.

“This is a regrettable but necessary decision,” he said in a news release. “We simply cannot continue operating a high-cost mine while pricing and freight markets are so volatile.”

The town of Wabush’s website says the mine is the third largest iron ore mine in Canada.