$4B Labrador iron ore mine can't break ground without more housing, power, GM says

An iron ore mine in western Labrador is inching closer to becoming a reality, but the project's general manager says the lack of infrastructure and housing in the region may stymie the opportunity altogether.

Kami Project general manager Kevin Foley says he expects the $4-billion mine to begin operating by 2030 at the earliest. The project still requires a feasibility study and an environmental assessment, then construction by 2027, if it's deemed profitable.

He's estimating the mine's lifespan at 25 years.

"We're really excited about the employment opportunities, to have a local workforce," Foley said, noting the company intends to "work with the communities in Labrador and Newfoundland to make sure that we're maximizing the value for the province."

The mine itself — owned by Australian company Champion Iron Ore — is poised to be the third in the Labrador West region. The site plans, Foley says, include a concentrator for ore processing, a crushing system and pit, and a railway connection to the Quebec North Shore and Labrador Railway.

But a project that large needs fuel.

Foley, who was among industry heads and politicians at this week's MINEx conference in Labrador West, was joined by other mining industry leaders who say they would require new, reliable power from Churchill Falls to operate. Without that extra infrastructure, Foley says Kami won't be possible. 

"To be very clear, we will rely on Newfoundland and Labrador Hydro to provide power for Kami," he said.

And it's not just power, land and infrastructure the project needs to break ground. The 600-plus workforce the company anticipates will also requires its own human resources.

"Now you're talking about an ecosystem," Foley said: one that includes warehousing, health care, and education. "Those parts of the ecosystem have to come."

He insisted, after repeated questioning from a Radio-Canada reporter on Thursday, that the company prefers a local workforce as opposed to a cadre of rotational workers that will only reside in the area during their shifts.

"That means that we need to put effort into — we all need to put efforts into — attracting and retaining the required people," Foley said.

Housing a sticking point for mine

Labrador West is currently facing a housing crunch, however, with no room in the near future for adding hundreds of new residents.

"We understand that there's challenges and opportunities in the region today and around workforce, around infrastructure and housing," he said. "Our commitment is to work with the different levels of government and the other companies to make sure that those opportunities get addressed in a timely manner."

Housing Minister John Abbott told CBC News on Friday there are almost no rental vacancies in Labrador West, with the region experiencing one of the worst housing crises in the province.

"We are very concerned," Abbott said.

In the long term, though, the minister says there's only one solution: working with mining companies to hammer out numbers and build new homes.

"We need a master plan here," Abbott said. "What are your expansion plans? What are your requirements? And I think with the companies, with the towns and with the provincial and federal governments, to make sure we can accelerate new housing construction — that's the only solution that we see, and that is something that's going to take the time to put in place."

The Kami Project's future depends on whether governments can help solve the housing and power problems in time, Foley says.

"There's definitely risk ... with the resident workforce," he said.

"We do have six years in front of us. A lot can happen in six years, but there is some risk that the infrastructure and the housing in the area won't be available for 600-plus new people to the community."

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