|
|||||
| Return to 2005 News Releases | |||||
|
|
News
Release |
||||
|
MHA Jones pleased with tentative sale of
Wabush Mines MHA for the District of Cartwright-L’Anse au Clair, Yvonne Jones, says news of the tentative sale of the Wabush Mining operation in Labrador to Consolidated Thompson Ltd. is great economic news for Labrador West and indeed all of Labrador. Government announced earlier this week that a deal had been tentatively reached that would see Consolidated Thompson buy the 44.6 per cent share of the Labrador West Mine from its current joint owners. The deal is worth $163.4 million. "This new arrangement not only sustains the jobs that exist at Wabush Mines, but it will also enhance the employment opportunities in that particular area of our province," says Jones. " Just as importantly, it will help sustain the mining operation in that region into the long-term, which is indeed a benefit for all Newfoundlanders and Labradorians." Jones points out that Consolidated Thompson intends to construct a major iron-ore mine in northern Quebec at Bloom Lake, a project she thinks will be a perfect fit for Wabush and for Wabush Mines. "The attributes of this mining operation in Wabush was very appealing to Consolidated Thompson, as it will allow them to move forward with the Bloom Lake project. It will help them achieve their operations at a lower cost to their company in a site that is already constructed and, therefore, will probably result in a substantially reduced capital expenditure. Financially and logistically, it makes perfect sense for this deal to go ahead." Jones is now calling upon the government to intervene and improve the infrastructure in this region to support the additional mining activity. "I also ask that they intervene to pave the roads into Labrador West to support the future mining operation or to construct the transmission line from the Churchill Falls project to Labrador West so that they may have available power supply to attract these companies. Government also needs to get on with negotiating the industrial power contract with IOC in Labrador, an issue they have also failed to deal with. The private sector is doing its part, now it is time for government to do theirs."
|
|||||
|
Media Contact: |
|||||
