A plea for the future of Wabush Mines - Action News
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A plea for the future of Wabush Mines

Labrador West politicians went before the Montreal judge overseeing the Cliffs Natural Resources bankruptcy case to talk about what it's like in their communities now that the mine has shut down.

Cliffs Natural Resources bankruptcy case continues, judge asked to do what's best for communities

Heavy trucks once used to haul ore at Wabush Mines are now parked, gathering rust. The operation, which employed nearly 500 workers, closed in 2014. (CBC)

Three representatives from Labrador West made an impassioned plea to a Montreal judge earlier this week, asking him to do whatever he can to save Wabush Mines.

Wabush Mayor Colin Vardy, Labrador City Mayor Karen Oldford, and MHA Graham Letto all spoke to Justice Stephen Hamilton duringbankruptcy hearings for Cliffs Natural Resources.

The court is considering whether to extend, or end, protection under the Companies' Creditors Arrangement Act.

The trio are asking the judge to make a decision that will leave the Wabush Mines operation attractive to potential buyers.

From left: Wabush Mayor Colin Vardy, Labrador West MHA Graham Letto, Labrador City Mayor Karen Oldford, outside a Montreal courthouse. (Submitted)

"All the judge has heard up to this point is basically the lawyers battering back and forth," said Letto. "We wanted to put a human face on it, and impress upon him what the impact of Wabush Mines closure has had on the community."

The 2014 closure devastated the economy in Western Labrador:Housing prices plummeted, businesses closedand pensioners were left to fend for themselves.

Letto says his presentation focused on the pension issue.

"The first task I had as an MHA, the day after I got sworn in, was to appear before the Wabush pensioners and retirees, and let them know that the government of Newfoundland and Labrador was terminating their pension, because Cliffs had not been up to date,had been behind in their pension payments, and it was underfunded so badly they had to terminate it," he said.

The court has granted several extensions already, and the hope was itwould create an opportunity for an operator to come forward but so far, nothing.

The judge has to make the best decision in the best interest of the communities of Labrador City and Wabush.- Graham Letto

As the bankruptcy case drags on, there are worries Cliffs will sell off the operation's crucial infrastructure and drive away buyers who may be interested in restarting Wabush Mines.

"We do have an interested operator that's prepared to look at this facility, and we need to do whatever we can to give that operator a chance to make a bid and to see if it is feasible to operate Wabush Mines," Letto said.

"The judge has to make the best decision in the best interest of the communities of Labrador City and Wabush."

Labrador City Mayor Karen Oldford saysit was important for the judge to hear from people who are living with the reality of a closed mine in a one-industry town.

"We're dealing with these large, multinational companies, where we're very minuscule," she said.

Oldford says she's hopeful, after having the opportunity to explain how people are struggling with the fallout from the mines closure, and the cancellation of health and life insurance benefits.

"People who are suffering from cancer and now have no ability to afford their medications," she said. "People who need to move because of health issues,(who)can't sell their house, because now housing prices are down below what their mortgage is, and the market's not moving."

Letto agrees.

"He's a judge, sitting in Montreal. We needed to go there and bring that view to him directly," he said. "I must say, he listened very intently. The lawyers asked questions, so I think we achieved our goal to the point where now Judge Hamilton understands he understands, when he's making those decisions and hopefully what we told him yesterday will have an impact on his decision, that he will make the right decision, in the best interest of the community."