Rally planned as Cliffs looks to dismantle Wabush Mines
The mayor of Wabush has taken to Facebook to rally residents, in an effort to keep Cliffs Natural Resources from dismantling its iron ore mine, after the company filed paperwork with the province to do so.
"I am fully aware that with [iron ore prices] where they are today, it is very unlikely for anyone to want to reopen this mine in this market. But this day will pass," Colin Vardy wrote in an open post.
Cliffs closed Wabush Mines in 2014, citing the slump in iron ore prices. About 500 jobs were lost, creating economic turmoil in Labrador West.
On Thursday, the company filed an environmental assessment in order to totally decommission and rehabilitate the site.
"If the buildings come down, it's hard to see somebody that would come in to make a ground up investment of billions of dollars in this region, when we've seen several mines fail in the last number of years," Vardy told CBC's On The Go.
"I want to make sure Wabush has a fighting chance at this."
Possible buyer?
Cliffs environmental assessment states the company had tried to sell the site, but when it found no buyer, it turned towards demolishing the mine.
Vardy disputed that, saying he knows of an interested party.
"They have a long term goal. They say the ups and downs are fine, as long as you have more ups than downs, and that makes long term business sense," said Vardy.
He declined to name the company.
Last year, MFC Industrial was in negotiations with Cliffs to buy the mine, but that fell through.
A good deal
Vardy said the continued industry slowdown actually makes the mine attractive.
"We've heard that from several different investors. Now is the time to get in the iron ore industry, because you can get things ready at a much cheaper cost than during a boom."
Vardy is pressing the province for more time to complete negotiations, a stance NDP Leader Earle McCurdy backed while campaigning Friday.
"The government should not make it easy for Cliffs to turn its back on the people of Wabush. They've already suffered enough. To allow that application would be the kiss of death for that facility," said McCurdy.
'Nail in the coffin'
Vardy said if Cliffs moves ahead with decommissioning, the site will be close to worthless.
Vardy wants people to come together at noon on Saturday to rally, and send the message that the site should not be dismantled.
"If the buildings come down, it's the last nail in the coffin." Vardy wrote in his post.
In its environmental assessment, Cliffs said it plans to demolish all buildings and infrastructure on site.
As well, the company owns more than 100 housing units in Wabush, two apartment complexes, an office and the J.R. Smallwood Middle School. The document states if Cliffs cannot sell these assets, it will also demolish them — although it will discuss ownership of the school with the province.
Cliffs estimates the demolition and rehabilitation work will take up to five years, and employ 131 people.