Lab West issues at fore for cabinet committee

Nearly a third of Newfoundland and Labrador's cabinet will hear plenty of details Tuesday on how best to deal with a sudden downturn in the mining industry.

Five cabinet ministers are meeting with union leaders, mining managers and the municipal councils in Labrador City and Wabush, which both rely heavily on their respective iron ore mines.

On Monday, Wabush Mines laid off about 125 workers, while IOC has shelved ambitious plans and is planning a production hiatus in the summer to deal with a sudden slump in the global demand for steel.

Labrador City Mayor Graham Letto said he will push cabinet ministers to pursue measures that will provide jobs to help the region get through an unexpectedly bad time.

"The best way this province now can help Labrador West is to accelerate the four projects that are already in the pipeline for construction, and the four being the hospital, the college, the Trans-Labrador Highway and the waste management strategy," Letto told CBC News.

Letto said the projects could put all laid-off employees, plus hundreds more, to work on projects that the region needs.

Meanwhile, the Newfoundland and Labrador government said Monday afternoon that a "major infrastructure announcement" will be made Tuesday morning, in simultaneous news conferences to be held in St. John's and Labrador City.

The ministers visiting western Labrador are also scheduled to attend the event there, while Premier Danny Williams, Finance Minister Jerome Kennedy and Transportation and Works Minister Trevor Taylor will unveil details in St. John's.

A statement on Monday did not identify projects that will be funded.