Labrador mine drives up housing costs

A woman struggling to find a place to live in Labrador West says shecan't afford rentin the area, where an Iron Ore Co. of Canada expansion is attracting more people and sending rents skyrocketing.

"When it comes down to it, the rent here is crazy," Jennifer Tremblay, a mining company employee, said Tuesday. "I'm a single mom, trying to raise three kids, working for IOC and I can't do it."

One online posting for the area, which includes Labrador City and Wabush,lists a bungalow for $4,500 a month.

Tremblay and her children live with her mother but she said some working people may have to quit their jobs and leave the area.

"You need a $20,000 down payment for a $300,000 house and on one paycheque it's not easy to do," she said.

Tremblay and others worried about rising housing costs met provincial cabinetminister Tom Hedderson on Tuesdayas he arrived at the airport in Labrador West.

Minister promises help

On Wednesday, Hedderson, the minister responsible for Newfoundland and Labrador Housing Corp.,met with councillors in Labrador City and Wabush.

Hedderson promised the provincial government will make more public housing available in western Labrador. He said some vacant units will soon be renovated and used again.

Thatmight help some people but won't do anything for Tremblay, who earns too much to qualify for subsidized housing.

In May, IOC officials announced the company was relaunching an ambitious plan to expand its mine in Labrador City. The plan was stalled in 2008 when demand for steel and the pellets IOC produces nosedived in the wake of a worldwide financial crisis.

IOC said in a statement that it will resume the first phase of an expansion project in western Labrador that is expected to pump up annual production from its Labrador City operation to 22 million tonnes.