Cliff Natural Resources has announced it is permanently closing its Scully iron ore mine in Wabush, Canada, affecting about 500 mining workers.
There are about 50 workers still working at the mine during the idling period, and the company plans to reduce the number of employees at the operation to ten by the end of this year.
Canadian Minister of Natural Resources, Derric Dalley stated: “We have all known for some time that the closure of the mine in Wabush was a possibility.
“However, this does not make it any easier for the workers of the mine and their families, as well as residents in the Labrador West area.
“Our government is aware of this and will continue to support those impacted. Cliffs Natural Resources is fully compliant with legislation and has a closure and rehabilitation plan and financial assurance in place, as specified by the Mining Act.
“Any company operating a mine in the province would have to meet the same requirements.”
No mining or processing operations haven taken place at the Scully Mine since February. As per the Mining Act, Cliffs Natural Resources is going ahead with its closure and rehabilitation plan.
The company will also provide the financial assurance to compensate implementation costs. However, the finances will be granted only after complete closure of the mine.
Minister of Labrador and Aboriginal Affairs Keith Russell said, “While the closure of the Wabush mine is deeply troubling for many in the area, especially workers and their families, Labrador West has weathered challenges in this industry before and I am confident that the region will rise to this challenge as well.
“Labrador’s resource development potential remains great and our government will continue to work with municipalities and stakeholders to recognise and realise future opportunities.”
The Scully iron ore mine started activity in Wabush in 1965.
