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Cliffs Resources officially shutting Canadian Wabush Mines

Cliffs Resources officially shutting Canadian Wabush Mines

Canada’s provincial government of Newfoundland and Labrador said it has been officially notified by Cliffs Natural Resources (NYSE:CLF) of its plans to shut down the country’s third largest iron ore operation, Wabush Mines.

We have all known for some time that the closure of the mine in Wabush was a possibility. However, this does not make it any easier for the workers of the mine and their families, as well as residents in the Labrador West area,” Natural Resources Minister Derrick Dalley said in a statement on Friday.

“Our government is aware of this and will continue to support those impacted,” he added.

Idling the mine in February has already cost the U.S. largest iron ore producer about $100 million. Roughly 500 workers employed at the site will be affected. Of the 50 employees still currently working at the mine, Cliffs said that number would be reduced to 10 before the end of the year.

The Cleveland-based mining and natural resources company is also looking to sell other iron-ore mines in Eastern Canada and Western Australia.