Quebec mine good for western Labrador economy

Construction of a rail line that will service a new iron ore mine in western Labrador will mean more jobs for people in Newfoundland and Labrador.

Bloom Lake iron ore mine expects to open next fall in eastern Quebec, and includes a rail linethat goes through western Labrador.

A benefits agreement signed between the Newfoundland and Labrador government and the mines operator Consolidated Thompson Iron Mines Ltd. will see all railroad workers hired from the province.

"That's kids [who] go to our schools, that's people that shop in our stores. You name it, it's a benefit to the community," said Wabush Mayor Ron Barron.

The Grenfell Hotel in the western Labrador community of Wabush is already seeing benefits. Bookings have increased since construction began at the mine.

"It's the long term forecast that we're looking at, and we see that it's going to last and it's going to be there for a while so we're going to get ready for that boom," said hotel spokesman Nick McGrath.

The hotel is adding 15 suites, a conference room, gym, and spa in preparation for the added business, according to McGrath.