This morning, The Telegram, released a story ( http://www.thetelegram.com/
In just the last two years, the big 3 mining players in the Labrador West/Quebec region (Rio Tinto, Cliffs Natural Resources and Arcelor Mittal have announced expansion plans to bring their combined Iron Ore output capabilities up to 96 Mtons/year by 2016, up from their current levels of 37 Mtons. These expansions are so far costing 8.1 Billion dollars, combined with more undetermined figures to be announced. Combine these with junior mining company Alderon Resources and you could see the annual output increased to 104-112 Mtons/year and at least an additional 989 Million dollars.
Daniel MacEachern ends his article in The Telegram with these lines...In just the last two years, the big 3 mining players in the Labrador West/Quebec region (Rio Tinto, Cliffs Natural Resources and Arcelor Mittal have announced expansion plans to bring their combined Iron Ore output capabilities up to 96 Mtons/year by 2016, up from their current levels of 37 Mtons. These expansions are so far costing 8.1 Billion dollars, combined with more undetermined figures to be announced. Combine these with junior mining company Alderon Resources and you could see the annual output increased to 104-112 Mtons/year and at least an additional 989 Million dollars.
" Gallagher echoed Liverman’s comments that infrastructure and other issues will prove to be a challenge over the next 10 years.
“To co-ordinate the logistics, to best serve all the constituents, will be something that will take a lot of stakeholders getting together and working on,” he said."
No, it will not prove to be a challenge because the challenge is already there.
In the Summer of 2002, none of this seemed possible but now it's slapping a dark reality on the Labrador West region as housing prices have sky rocketed. A 3 bedroom bungalow in 2002 was selling for 80,000 dollars while the current average price for a 40 year old house is now 310,000 dollars. Newer models are in the range of 368-460,000 dollars. Trailers, which once went for 25,000 dollars are now going for 180,000 to 250,000 dollars.
Like many 'Boom towns', rent has sky rocketed with the sudden influx of Fly In/Fly Out (FIFO) workers. the going rate for rent per room is anywhere from 1000/month to 120/night. To rent a trailer, the price is 4500/month and apartments (2 bedroom) is now 2500/month. This is great for FIFO workers as they are subsidized by their employer, but is causing local low-income service workers to be slowly pushed out the door.
Like many 'Boom towns', rent has sky rocketed with the sudden influx of Fly In/Fly Out (FIFO) workers. the going rate for rent per room is anywhere from 1000/month to 120/night. To rent a trailer, the price is 4500/month and apartments (2 bedroom) is now 2500/month. This is great for FIFO workers as they are subsidized by their employer, but is causing local low-income service workers to be slowly pushed out the door.
I don't feel that the blame for the housing shortage should be placed solely on the FIFO workers, as the majority are only in the region for short term construction work so they can support the families. They spend many weeks and holidays away from home, a fact many Newfoundland families can relate to.
The fault belongs to industry and the municipal and provincial governments for not opening up a dialogue for the short and long term plans of the region, and not developing a clearer understanding of what lies ahead. Decisions should have been made then, not now.
This is already causing a "shadow community" for some local companies, who are there for the long haul, but cannot bring workers to stay in the community. With ever-rising housing prices, and transportation issues like the terrible quality of the highway and lack of accessible, affordable flights (Ex: Round trip from Fort McMurray to St. John's for the May 24th weekend is $965.79, compared with flying from Wabush to St. John's, a total of $1010.50), the community is tripping in a game of catch-up with the booming mining industry.
The service industry is struggling to accommodate with the sudden on rush of workers. A recently completed hotel did not even have a chance to open the doors before a contracting firm filled all the rooms. Business trying to open new shops (IE Canadian Tire, Jungle Jims) are not even able to do so for a lack of available commercial space to a lack of workers willing to take a 12$/hour job as this would barely be able to put a roof over their head.
The government of NL has to immediately step in and help solve the issues in Labrador West. Give the local health authority a larger budget to bring in the many needed doctors, open up the land for Housing and Commercial space to be built and bring in much needed Low-Income housing for those not lucky enough to enjoy the high wages of the mining industry that being pushed out the door to make room for the FIFO workers..Labrador West has the highest concentration of heavy industry in the province, yet the region only has 8 doctors with 2 of these doctors being within 5-8 years of retirement. The local hospital is not even able to give local women the comfort to give birth in their home town as the Hospital does not have a full time Obstetrician-Gynaecologist.
As a former resident of Labrador West, and hearing the voices from close friends who still live home, I take this as all slap in the face from the government of Newfoundland & Labrador. A slap of complete disrespect from one of the hardest working regions of Canada, least of all Newfoundland & Labrador. There was no foresight, no long term planning for the region and no communication with local industry.
For the first time, Labrador West truly has the chance to become a multi-generational community. With many couples, having watched their children grow and move on to start their own lives, are now choosing to stay and retire. Many of these people came to Labrador West fresh out of trade school /University, got married in Labrador West, raised their children in Labrador West and made life long friends in Labrador West ...They made lives in Labrador West and are content there.
With the sudden influx of young couples to Labrador West, the possibility of young energy is there as there is much for young families that have a taste for the outdoors to do there, but the Provincial government needs to start re-investing into a region that for too long had too much taken from it.
With the sudden influx of young couples to Labrador West, the possibility of young energy is there as there is much for young families that have a taste for the outdoors to do there, but the Provincial government needs to start re-investing into a region that for too long had too much taken from it.
Hopefully the recently elected MHA Nick McGrath will still be able to use his strong and clear voice in St. John's to help address these issues, unlike that of "Silent" Jim
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