Potential takeover for Wabush Mines

By Ty Dunham, The Aurora
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Government working with interested buyer, says Letto

There’s a glimmer of hope the smoke will rise from the stacks once again.

Graham Letto

It’s been two years since ore was dug from the ground in Wabush. While many of the 500 affected workers found employment elsewhere there have been many holding onto the possibility of returning to work at the mine.

Labrador West MHA Graham Letto is working to pursue a possible takeover for Wabush Mines that’s working its way through the system.

Letto wouldn’t name the company interested in purchasing the assets from Cliff’s Natural Resources, but said he’s more hopeful than ever.

“It’s too early to tell and I don’t want to raise false expectations," he said "But it’s further along than we ever have been since Wabush Mines closed.”

It’s a complicated issue requiring the attention of the Department of Natural Resources, Environmental Conservation, and Labrador Aboriginal Affairs working with the potential buyer and Cliff’s, Letto said.

Much of the mine has been dismantled, but Letto said it’s never too far gone to reactivate.

“There are some issues with the pits and whatnot but these are things that can overcome.”

The company has toured the facility and know what they’re up against, he added.

Letto said it will likely be within two to three months before knowing how likely the sale is, noting how valuable an asset the mine is.

“If you’re going to purchase a mine now is the time to do it with the value of the Canadian dollar.”

Organizations: Department of Natural Resources, Labrador Aboriginal Affairs

Geographic location: Wabush

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