Businesses and families are feeling the slowdown of the iron ore market, especially those affected by the idling of Wabush Mines in February.
The recent news of Cliff’s Natural Resources choosing to shut the mine down permanently after negotiations with potential buyer MFC Industrial fell through has prompted many to worry about their future in Wabush.
But MFC is continuing to explore options to take over the mine, which is why United Steelworkers (USW), Local 6285 president Jason Penney is remaining optimistic.
“From what we’ve been told, as royalty holders they have certain contractual rights, which will allow them to re-enter the plant,” explained Penney. He said it’s not a matter of if MFC reopens the mine, but when.
“MFC seems like a very solid and strong company. This is not their first rodeo. And they’re adamant that they’ll reopen the mine. We just
hope it can be done in a quick time frame.” While it isn’t the preferred route, Penney said it’s better than the alternative. “There’s no doubt we’re disappointed by the sale. This way will be longer. The important thing I want people to remember is all hope is not lost.”
It’s unclear why sales talks between Cliff’s and MFC were terminated despite the fact MFC wants the plant. It could be costly if Cliff’s resorts to its provincial government-approved closure plan.
“There’s a remediation plan, but I’m not sure exactly what that entails,” said Penney. “From what I’m aware, they’re obligated to return the land back to its original state. I guess that means removing the infrastructure.”
Although Penney is hopeful for operations to begin again, he said it would be devastating if it doesn’t happen.
For the rest of this article, click here: http://www.thetelegram.com/Business/2014-11-04/article-3927429/Steelworkers-president-optimistic-for-future-of-Wabush-Mines/1