CBC News reported that the Iron Ore Company of Canada will not extend a summer shutdown. Months of anxious speculation have ended on a happy note in western Labrador, as the Iron Ore Company of Canada has ruled out extending a summer shutdown.

On Friday, IOC said it will be able to resume production in August, and put to rest fears that the shutdown could have been extended by as many as 13 additional weeks. The five week shutdown will coincide with many employees' vacations.

Mr George Kean, president of the United Steelworkers union local said that "With the contracts they got through the year, they think five weeks will be sufficient to do that. Even though the markets are extremely volatile throughout the world, they're hoping that this will do it for 2009 This is a big relief, not only for our membership, but the whole community and I think for the province as a whole."

IOC, whose mine in Labrador City is the region's most significant employer, had said earlier this year it may need to extend a five week summer shutdown to deal with a slumping global demand for steel. The possibility of an extended shutdown had been taking its toll on some business owners.

IOC shelved expansion plans last year, as the global economic crisis took hold. A boom in the region quickly evaporated, with newly hired workers many of whom bought expensive houses to work in the area suddenly facing fears of unemployment.

(Sourced from CBC News)