No ready solution for IOC woes, province says

The Newfoundland and Labrador government reacted to bad news from the Iron Ore Co. regarding its operations in Labrador West Wednesday by saying there was nothing it could do in light of the global economic slowdown.

Opposition leader Yvonne Jones pushed for aid for Labrador during question period in the house of assembly after it was announced that IOC, controlled by global mining giant Rio Tinto, said its plans for an $800-million expansion were on hold until the demand for steel improves.

"What are you looking at doing in Labrador West in response to the news from IOC and Wabush mines?" she asked.

Natural Resources Minister Kathy Dunderdale said the government is willing to help, but there is nothing it can do right now.

"I have spoken with the management of IOC. I have talked to the mayor of Wabush. I have been in contact with the union. At this point in time, Mr. Speaker they have not asked or requested any kind of a specific response," she said.

Since IOC announced its massive expansion plans in March, which included boosting production to 25 million tonnes per year by 2011, the global economy has stalled and IOC's parent company is facing a takeover bid, all things, Premier Danny Williams said, the province can't stop or even influence.

"Mr. Speaker, the Prime Minister of Canada is saying the worst is yet to come. The president-elect of the United States is saying the worst is yet to come. We are not in control of the world economic situation," he said.

Dunderdale said she wouldn't be surprised if there was even more bad news Friday when IOC's board of directors is scheduled to meet.