The Iron Ore Company of Canada (IOC) announced it is taking advantage of rocketing iron ore prices by moving forward with its Wabush 3 iron ore mine in Labrador, Canada.
IOC said a new pit will be constructed next to the existing Luce pit, which is part of the company's Carol project in Labrador City. The provincial government approved the Wabush 3 expansion in September 2015.
Wabush 3 is expected to increase output by around 5 million tons per annum, and extend the life of mine by 12 years after a $79 million investment.
Wabush Mines was closed in late 2014 by owner Cliffs Natural Resources. Construction on Wabush 3 is expected to start in the spring, with production set for H2 2018.