Price slump prompts layoffs at Iron Ore Canada

After a bounce earlier this week benchmark iron ore price declined again on Thursday to trade $47.80 a tonne, levels last seen almost a decade ago. After losing 47% of its value last year, the steelmaking ingredient is down nearly 30% this year.

The slump in the price claimed another victim today after the Iron Ore Company of Canada, majority owned by Rio Tinto, announced it is sending out 150 layoff notices.

IOC employs roughly 2,500 people in Labrador West and Quebec in eastern Canada and produced 15 million tonnes in 2013.

Ron Thomas, presidentĀ of Local 5795 of the United Steelworkers, said the layoffs will affect all janitor and labourers, 118 operator and maintainers, and three carpenters reports the The Telegram.

The layoffs will go by seniority and will be effective June 14.