Tacora, owners of Wabush mine, seek creditor protection

Tacora Resources, which owns the Scully Mine in Wabush in western Labrador, hasobtained creditor protection from Ontario's Superior Court.

The protection was announcedTuesday evening ina press release.

"Our financial condition has been negatively impacted by several factors and we now find ourselves facing financial obligations which we simply cannot meet," says a statement sent to employees of the mine that was obtained by CBC News.

There are 280 unionized workers at the mine, according to United Steelworkers Union Local 6285 president Joshua Joy. Operations at the mine will continue as normal, according to the release, with no layoffs or impacts to payment, benefits or pensions.

Joy said the move comes after an investor fell through.

The $75-millionagreement should cover costs for the next 20 weeks or until nearly the end of February a projection filed as part of the court submitted proposal reads.

Tacora, based in Minnesota, hasoperated the mine since 2019. The mine, which produces iron ore, received federal funding in January to help the mine process manganese.

Previous owner Cliff Natural Resources closed the mine in 2014,which saw the loss of hundreds of jobs along with lost benefits for workers, before Tacora took over operations.

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