CBC News reported that the drop in global demand for steel could mean temporary layoffs at the Iron Ore Company of Canada would extend to 13 weeks, instead of the originally planned 33 days.

According to a company memo "As the market conditions continue to be unpredictable and are changing rapidly we have to look at all possible scenarios and take the necessary actions to remain viable and ensure we are positioned to weather this severe recession.”

The memo said that IOC, Canada's largest iron ore producer, will be notifying the minister of labour of its intentions accordingly.

Mr Terence Bowles president and CEO of IOC is quoted as saying in the memo that "Tough decisions could become necessary in the context of the global economic crisis. The market is still in a situation where there are unprecedented drops in world demand of raw materials including iron ore.”

It also says the company is waiting to see what the billions of dollars of infrastructure projects around the world will do to drive demand for iron ore and steel.

The company website says it employs almost 1,900 people in Quebec and Newfoundland and Labrador.

(Sourced from CBC News)