The value of mineral shipments in 1997 is expected to rise about five percent to approximately $980 million which, if realized, will be virtually on target with expectations held earlier in the year. Gains in iron ore shipments are expected to more than offset declines in the shipment of other minerals.
Iron ore shipments (combined pellet and concentrate) are expected to reach 22.4 million tonnes in 1997, one of the highest levels achieved for the industry in recent history. The Iron Ore Company of Canada (IOCC) is expected to ship 16.5 million tonnes (best since 1981) and Wabush Mines anticipates shipping 5.9 million tonnes (best since 1988). IOCC and Wabush Mines are operating at or near capacity and both mines have major investment programs in place. Wabush Mines is also completing a feasibility study on a new manganese extraction plant. The construction of the plant could have positive marketing and revenue implications for the operation. In the last five years, iron ore shipments from Labrador have grown steadily, reflecting increased demand for steel related products.
The strong performance of the iron ore industry has helped compensate for declines at other mining operations in the Province. By year-end, the value of copper shipments is expected to fall by 93 percent and gold by 34 percent. The decline in the value of gold and copper shipments is the result of three mine closures (Royal Oak Mines Inc., Ming Minerals Inc., and Raymo Processing Ltd.) and reduced gold prices.
Mining employment in 1997 is expected to average 3,465, representing a gain of 1.8 percent from the previous year. The strong performance from the iron ore sector combined with high exploration levels and the opening of new mining operations (gold at Richmont Mines Inc. and antimony at Roycefield Resources Ltd.) are expected to propel employment in the industry to its highest level in five years. Many sites exist throughout the Province which offer the potential for increased future mineral production. These sites are being identified through ongoing exploration and development efforts. Some sites, like the Voisey’s Bay deposit, are expected to impact future mineral production in a substantial way because of the size and quality of the deposit. Other sites are expected to make a more modest contribution. All properties are at various stages in the development process and several are expected to offer tangible results in the short-term (see table for list of developing properties).
In September 1997, Inco Limited announced that due to delays in the environmental review and approval process, the construction of and production from the Voisey’s Bay mine and mill facilities will be delayed by at least one year: initially, it was hoped that production could be achieved by the second half of 1999. Nevertheless, exploration drilling and geophysical work continues at several different sections of the Voisey’s Bay deposit.
Subsequent to Inco’s announcement, senior
officials of the federal and provincial governments and the Labrador Inuit
Association reached agreement on issues that will serve to facilitate the
completion of an Agreement-in-Principle regarding land claims. This agreement
marks an important step in the land claims process and creates a more stable
environment for resource development.
Exploration activity continues to be strong, concentrated mostly in the northern Labrador region. A number of companies including Columbia Yukon Resources Ltd., Donner Resources Ltd. (in Labrador) and Vulcan Minerals Inc. (on the Island) have released drill results from recently completed drill programs. In all cases, results warranted additional drilling work to evaluate the properties. Exploration expenditures in 1997 are expected to total approximately $73.3 million, down from peak expenditures of $91.3 million last year, but well above historic levels. Exploration activity is expected to generate about 425 person years of employment this year compared to the peak level of 530 recorded last year.