The Iron Ore Co. of Canada (IOC), a subsidiary of Rio Tinto, announced Wednesday that its planned $800 million mining operations expansion in Labrador City (located in the Canadian province of Newfoundland and Labrador) has been suspending indefinitely due to a dramatic decrease in iron ore demand.
The three-year expansion plan, announced back in March 2008, was expected to increase annual iron ore concentrate production from 17 million to 22 million metric tons.
Company spokesperson, Michel Filion, told press that the expansion project has not yet been cancelled altogether but that, “"I cannot tell you how long this recession and turmoil will occur."