Photo Credit: Iron Ore Company of Canada The Iron Ore Company of Canada’s (IOC) concentrator and pellet plant in Labrador City. IOC is investing in the future with a $1.1 billion capital improvement plan.

Low commodity prices and market downturns for key minerals have prevailed throughout most of 1999. Consequently, the value of shipments this year is expected to decline 19% to $815 million. However, improving market conditions are expected to bring about a rebound in 2000.

Iron Ore
The expected decline in mineral shipment value is mainly due to price and volume reductions for iron ore, which accounts for about 90% of total shipments. Poor market conditions for iron ore are attributed to low-priced steel imports flooding the North American market. Anti-dumping measures to curtail steel imports, continued strength of North American steel demand and strengthening demand in Asia and Europe should bring about a market recovery in the coming year.

Gold
The balance of the Province’s mineral shipments is comprised of gold and a variety of industrial and structural minerals that add employment and diversity to the local economy. While gold production is expected to increase in 1999, low prices throughout most of the year will cause the value of production to decline.

Exploration
Mineral exploration expenditures on the Island are forecast to increase by $6 million to $18 million in 1999. This increase is attributed to exploration of dimension stone sites, the discovery of several gold showings and a resurgence of base metal exploration. A decline in nickel exploration in Labrador, however, will bring total expenditures for the Province down to $38 million from $51 million last year. Rising gold and base metal prices, and a new Mineral Exploration Program announced in the 1999 Provincial Budget should promote exploration over the near term.

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Voisey’s Bay
Events throughout 1999 have given rise to a renewed sense of optimism regarding development of the Voisey’s Bay nickel deposit. The mine/mill project was released from the environmental assessment process, aboriginal land claims negotiations have progressed, and impacts and benefits agreements (IBAs) between Inco and both aboriginal groups are expected to conclude this year. Inco and the Province have been holding informal talks and are optimistic that a deal could be reached in the near future. Indications that the recovery of nickel prices may continue is favourable for the advancement of one of the most attractive nickel projects in the world.

The outlook for the Province’s mineral industry is positive. Significant investments combined with improving market conditions should ensure future growth.

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