Mining

The mining industry recorded a strong performance in 1996: the value of mineral shipments rose; exploration and development drilling continued at high levels; and preparatory work on soon to be one of the world's largest nickel operations continued. Overall, the value of mineral shipments increased by 6.1 percent to $935 million. Employment averaged about 3,365, or about 2.8 percent more than the previous year.

Iron Ore Company of Canada

The largest mining operation in the Province, the Iron Ore Company of Canada (IOCC), shipped a combined total of 14.7 million tonnes of pellet and concentrate in 1996 and is expected to ship a further 16.5 million tonnes in 1997. IOCC plans to spend $75 million on capital improvements in 1997 and 1998. One of the major components of this investment is the construction of a new flotation plant at Labrador City. This will enable the Company to produce product with lower levels of silica, a changing requirement in the market. Also, a new wet-grinding mill system, which was initiated in 1996, is scheduled for completion in 1997.

Wabush Mines

Wabush Mines, the second largest mineral producer in the Province, has an annual capacity of 6.1 million tonnes of iron ore concentrate. Shipments in 1996 were approximately 5.3 million tonnes and are expected to rise to 5.9 million tonnes this year. The Company is completing a feasibility study on a new manganese extraction plant. By reducing the level of manganese in the ore, the plant will produce a higher quality product which will meet changing market demand. The Company has also recently introduced a number of cost-cutting and productivity improvements to lower its unit costs.

Gold Production

Several mines currently, or will in the coming year, produce gold in the Province. The largest gold mine, at Hope Brook, is expected to close sometime in the third quarter of 1997. Nevertheless, gold production in 1997 is expected to be higher compared to 1996 levels. Recent and/or expected gold producers include: Ming Minerals Inc. (October 1995); Raymo Processing Ltd. (June 1996); and Richmont Mines Inc. (March 1997).

Exploration

Exploration expenditures hit record levels in 1996 as more than $91 million was spent on exploratory and developmental drilling. In 1997, expenditures are expected to drop to about $69 million, which is still high by historical standards.

Outlook

The mining industry will play an even stronger role in the growth of the Provincial economy in the future. The value of mineral shipments and employment are set to increase for the fourth straight year in 1997 and exploration activities will continue at a healthy level. The industry will benefit greatly from the recent addition of a number of new mining operations and developing properties. Of course, the largest and most important development project relates to the nickel deposit at Voisey's Bay. When up and running at full capacity, output from this operation will likely cause the value of mineral shipments to more than double from current levels. All of these factors point to a robust mining industry in the near future.

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