Over the past two years, the mining industry has been recouping
ground lost in previous years as a result of significant
fluctuations in global mineral markets. The value of mineral
shipments from the province is expected to reach $917 million in
2003, representing a 14.4% increase over the previous year.
Direct employment in the industry is expected to average about
2,600 person years, up from approximately 2,560 in 2002.
Increased employment on the Voisey's Bay development will more
than offset losses in iron ore related mining operations. |
| Value of Mineral Shipments
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| Department of Mines and Energy;
Department of Finance |
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| Iron
Ore
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Iron ore currently accounts for more than 90% of the
value of total mineral shipments and therefore is the main
determinant of overall industry performance. About 20 million
tonnes of iron ore products are expected to be shipped from
Labrador this year, an increase of 6.5% from 2002. This is
slightly lower than expectations in the March forecast. Value
is projected at $859 million, representing an increase of
about 17%. Higher prices caused the value to grow much more
than volume, despite the negative impacts of the appreciation
of the Canadian dollar. |
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The Iron Ore Company of
Canada (IOC) at Labrador City expects to ship almost 15
million tonnes of iron ore products this year, up 3.9%
from 2002. Approximately 80% of the products will be in
pellet form and the remainder will be concentrate.
Employment at the mine, mill and pellet plant is
expected to average 1,230, down from 1,412 in 2002. IOC
indicated in both 1999 and 2002 that the number of
employees would be reduced as part of a move to lower
costs and raise productivity. When possible, the
approach has been to achieve the reduction through early
retirement incentives.
Wabush Mines expects to ship over 5 million tonnes of
concentrate this year, up 15% from 2002. Employment at
Wabush is expected to be around 375, on par with 2002.
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Exploration
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Mineral exploration
expenditures in 2003 are estimated at around $30 million
in comparison to $44 million in 2002. The higher
expenditure in 2002 was the result of some large
one-time expenditures on advanced exploration and
development at Voisey's Bay—actual field exploration
expenditures in 2003 will be similar to 2002. Most of
the expenditures in Labrador in 2003 have been for base
metals at Voisey's Bay and the Voisey's Bay South
projects. The bulk of exploration on the Island has been
for gold. Gold exploration is taking place at many
locations across the Island with a lot of interest
focused on the Botwood Basin area in central
Newfoundland. The number of claims staked in 2003 is
expected to be around 15,000, down from 33,126 in 2002.
Claim staking was relatively high in 2002, reflecting
speculation about a joint venture for gold exploration
on the Island between a major international gold
producer and a local junior company.
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