As Garry Best made his way back to Happy Valley-Goose Bay from Nain in mid-June, it struck the newly appointed president and CEO of the Nunatsiavut Group of Companies (NGC) how much things have changed. And, in some ways, how they haven’t.

Prior to his appointment the month before, he’d spent half a lifetime away, working as a naval officer with the Canadian Forces and then in public service roles. He now heads the economic development corporation of Nunatsiavut, an umbrella organization for a collection of diverse businesses including aviation, real estate, mine site services and more. The NGC operates under the Labrador Inuit Capital Strategy Trust. The for-profit corporation was created in 2011, for the benefit of Labrador Inuit.

“Coming back after four decades, it is a new Labrador in many respects,” he told Atlantic Business Magazine.

For one thing, he said, there are plenty of jobs and emerging entrepreneurial activities. He’s seeing momentum in business development, capital investments linked to the energy transition, and most importantly a variety of new roles available for people within Labrador.

“You don’t have to go across the Maritimes or to Central Canada to work, you can stay home. You can be in Labrador. And you can take on supervisory and management and executive positions in companies we own,” he said, referring to established Indigenous-led businesses, and businesses with Indigenous ownership interest.

“That’s not always been the case. In fact, that’s the new Labrador. It’s the bright light of opportunity for everybody,” he said.

Big spending

One company dominates conversations around major capital expenditures and new opportunities in northern Labrador: Vale.

Vale Base Metals has operations in Japan, the United Kingdom, Brazil, Indonesia and Canada. The latter includes their fly-in, fly-out mine near Voisey’s Bay, about 35 kilometres from Nain on Labrador’s north coast. The mine has been in production since 2005.

The company is investing an estimated $3.72 billion (US$2.69 billion) to move from an open pit to two, underground operations. The new areas—known as Reid Brook and Eastern Deeps—are expected to produce 40,000 tonnes of nickel-in-concentrate and 20,000 tonnes of copper-in-concentrate at peak production each year, as well as more minor amounts of cobalt, supporting 400 to 500 full-time jobs. With work on the expansion nearing completion, production has been ramping up. Hiring is ongoing.

While Vale has Impact Benefits Agreements with both Innu Nation and the Nunatsiavut Government, the exact terms are confidential. However, we know the company has Innu and Inuit employee advisory committees, Indigenous employment coordinators and environmental monitors from the local communities.

“You don’t have to go across the Maritimes or to Central Canada to work, you can stay home. You can be in Labrador. And you can take on supervisory and management and executive positions in companies we own… that’s the new Labrador. It’s the bright light of opportunity for everybody.”

—Garry Best, CEO, Nunatsiavut Group of Companies

Garry Best confirmed companies under the umbrella of the NGC now have established track records with Vale. Majority-owned Torngait Services Inc. (TSI), for example, has been collaborating with ATCO Frontec on the provision of site services at Voisey’s Bay for almost 20 years. He expects more locals to land supply and service contracts over the coming 20 years of operations.

“I think proof is in the pudding when you deliver what you’re contracted to do and you do it well. That obviously impacts the overall relationship,” he said.

Nickel pulled from Voisey’s Bay is sent to the island on the MV Umiak 1 bulk carrier, to Long Harbour. Here, Vale has one of the world’s lowest-emission nickel processing plants, producing nickel rounds for export to manufacturers around the world.

The company promotes itself as the supplier of choice for Class-1 high-quality, low-carbon nickel (Class 1 referring to having more than 99.8% nickel content). Vale’s nickel is in demand with automakers including General Motors and Ford, and battery makers including NorthVolt. Atlantic Business Magazine asked about end users specifically for Labrador nickel, and was told it wouldn’t be correct to directly connect nickel from Voisey’s Bay to GM, Ford or NorthVolt. However, it was confirmed that local nickel is ending up with manufacturers tied to the energy transition, including electric vehicle makers. The exact companies were not disclosed.

“We are extremely optimistic about the growing demand for critical minerals in green technologies, and the potential for Vale Base Metals and for the province. New exploration targets (for mining) are being tested and results are very promising. We hope to be mining in Labrador and processing in Long Harbour well into the future,” stated Vale’s director of Newfoundland and Labrador operations Roberto Damasceno, via email.

Rare Earths, big decisions

Labrador is also seeing increased activity in environmental research, environmental surveys, exploration and advanced consultations on possible new mining projects. Best said that includes the Strange Lake Rare Earth Mining Project of Torngat Metals. The project is in environmental assessment with the provincial and federal governments.

As proposed, the project would see an open pit mine for Rare Earth Elements (REEs) at a remote site just over the Quebec side of the border, about 235 kilometres northeast of Schefferville. A roughly 160-km road is expected to be built from the mine, across northern Labrador, to carry rare earth concentrate by truck to either a new port facility in Voisey’s Bay proper or nearby Anaktalak Bay, where an existing port services the Voisey’s Bay mine. The mine’s forecast production capacity is up to 36,000 tonnes per day, with a lifespan of 30 years.

Unlike iron ore or gold, REEs are much harder to recognize. “(REEs) just looks like rocks.”

—Christine Burow, Chief marking officer, Torngat Metals

Unlike the rusty colouring of iron ore or the distinctive flecks of gold, REEs are much harder to recognize. “(REEs) just looks like rocks,” said Torngat Metals’ chief marketing officer Christine Burow with a short laugh.

There are many different REEs and four are the focus for the Strange Lake project: neodymium (Nd), praseodymium (Pr), dysprosium (Dy) and terbium (Tb). The first two are considered light rare earths, the latter two are classified as heavy rare earths, landing further down the periodic table. Each have their own specific uses, including high-strength magnets, high-performance motors and generators. Electric cars, trucks, buses and wind turbine manufacturers all make use of REEs.

REEs are closely tied to geopolitical concerns expressed by the Government of Canada around Canadian content in energy and technology supply chains. As Torngat Metals states in its assessment filing: “Currently, China supplies almost all of global Dy and Tb needs. The Strange Lake Project, once in operation, is expected to be the largest global Dy and Tb supplier outside of China.”

Burow told Atlantic Business Magazine the company is working on a number of areas at once but isn’t taking Indigenous and community consultation, or environmental assessment processes, for granted. “We’re not assuming we’re going to get a yes,” she said, though they hope that’s where discussions land at the end of the day.

Discussing possible benefits for Labradorians, Burow is the first to highlight the fact the proposed mine is in Quebec, while the transport road for exports and the port would be in Labrador. She emphasized there are benefits for all Labradorians in the proposed project. “This is a big thing for people to buy into, because the experience hasn’t always been there between Quebec companies and people coming from outside Quebec. But we are committed to making sure that benefits will be for suppliers, employment, training in Labrador. And not just for this project. But if this project goes ahead, it creates the basis for other critical minerals mining in Labrador,” she said.

More specifically, she said the Labrador side of the known REE deposit could be developed in time. She acknowledged new infrastructure is likely to draw other interest. “Our idea is that the project and the road can be seen as a foundation for (more) critical minerals development in Labrador,” Burow said, while reiterating they are focused on one project just now.

Seeing hurdles

Balanced against global demands, there are constraints and challenges for major projects proponents and small businesses to navigate in the new Labrador. Some of the issues are international and national in scope, others are local. When reporting in February on “The Potential for New Infrastructure Projects to Support Sustainable Growth in Atlantic Canada,” the Atlantic Economic Council think tank said the environment for new critical minerals projects is challenging. They cited “high borrowing costs, labour shortages, supply chain challenges, the need for community and Indigenous support, lack of infrastructure in rural areas and changing regulations.”

The report referenced a Mining Industry Human Resources Council forecast, showing up to 128,000 new mining workers are needed in Canada by 2033, to replace retirees and meet new demand. In Labrador specifically, the urgent need for many different types of workers is being linked to communities strapped for housing space, housing variety and affordable housing. Attracting workers for the long-term will require meeting needs for childcare, travel access, localized healthcare and community infrastructure, in addition to housing.

Labrador North Chamber of Commerce CEO Julianne Griffin is one of many people who moved to Labrador for work, then set down roots. Back in 2010, her husband was offered a job, prompting her to look for opportunities in and around Happy Valley-Goose Bay. She applied for a six-week event management position with the Chamber and made the move before knowing if she’d landed the role. She remembers getting the call within a couple of days of her arrival, “which was great.” After nearly six years with the Chamber, she was hired by the Town of Happy Valley-Goose Bay as director of economic development. She had two children along the way and was still on maternity leave with her youngest when an opportunity came up to return to the Chamber as CEO. As she spoke with Atlantic Business Magazine, she was celebrating five years in the position.

“Employers here in Happy Valley-Goose Bay are purchasing properties so they can hire and house their staff. It’s great if you’re an employer and you’re in a position to do so, to purchase residential property, but it’s very challenging for employees who don’t have the means for that type of investment.”

—Julianne Griffin, CEO, Labrador North Chamber of Commerce

Comparing her first day with the Chamber to today, Griffin said the role of the Chamber itself has had to evolve to be an effective support for local business, and that’s not just mining services. “I don’t recall a time when we were so involved with healthcare or housing,” she said, adding the availability of workers is a key consideration for major corporate investments and business growth. Housing, in turn, is the number one issue for workers and employers.

“Employers here in Happy Valley- Goose Bay are purchasing properties so they can hire and house their staff,” she said. “It’s great if you’re an employer and you’re in a position to do so, to purchase residential property, but it’s very challenging for employees who don’t have the means for that type of investment.”

Griffin said the small business community is still expanding in Central Labrador and Happy Valley-Goose Bay in particular, but the constraints from housing are real.

Lake Melville MHA Perry Trimper told Atlantic Business Magazine he sees new opportunities for local supply and service companies at the military base at Goose Bay in the years ahead. He also said one of the highlights of the evolving Labrador is the increasing multiculturalism of its residents, many of whom were recruited internationally to fill labour shortages.

Griffin said some new immigrants are launching small businesses that make communities more attractive. One example is MÓR Meats shop, co-owned by Niamh Roche, who originally hails from Ireland. But availability of staff, and housing, can still limit small business growth.

Griffin said all the government ministers and provincial organizations should spend time in the area to understand the linkages between public policy, spending and the opportunities—and lost opportunities—in Labrador as it exists today.

The Big Three

The situation is similar, if even more acute, in Labrador West, including the towns of Wabush and Labrador City.

An economic outlook for Labrador West by Gardner Pinfold Consultants was previewed early in 2024 at the Labrador West Chamber of Commerce’s “Future of Lab West Summit.” It showed a wave of potential major projects set to hit in short order, with the potential to offer thousands of jobs, contractor opportunities and lucrative contributions to the province’s bottom line.

If the work moves forward, key upgrades to the region’s electrical system would connect Churchill River hydro plants to Labrador West (either as one, 735-kilovolt line or two, 315-kilovolt lines). It could carry a capital cost of $1 billion for the companies seeking the additional power, with construction offering more than 764 jobs per year.

The full report was completed in June and suggests the one project could offer roughly $50 million in direct incomes per year for six years.

Lab West is also looking at expansion and upgrades in the region’s ever-dominant iron ore mining. Per provincial statistics for the gross value of mineral exports from Newfoundland and Labrador, iron ore is forecast to continue being the most valuable with an estimated $4 billion worth of shipments. The next closest mineral in value is nickel, with exports for 2024 forecast at about $992 million.

The Gardner Pinfold report suggests that capital plans for Tacora Resources, Champion Iron and Rio Tinto-Iron Ore Company of Canada (IOC) could together involve more than $350 million in capital investment each year over six years, hitting $2.1 billion before 2030.

 

The Gardner Pinfold report suggests that capital plans for Tacora Resources, Champion Iron and Rio Tinto-Iron Ore Company of Canada (IOC) could together involve more than $350 million in capital investment each year over six years, hitting $2.1 billion before 2030. The forecast is for more than 1,200 direct, full-time jobs just for those big three projects, with ancillary value to public coffers.

Meanwhile, the iron ore mining operation at Wabush continues to operate through ups and downs. Tacora Resources moved into creditor protection in October 2023 but, shortly before deadline, announced a financial offer led by Boston-based Millstreet Capital Management LLC. Tacora did not respond to questions but in a press release the company notes there is a “subscription agreement” as of July 21. A closing date for final arrangements is set for just prior to publication of this issue. It could offer an equity injection of up to US$250 million.

If successful, “(the) transactions will allow Tacora to emerge from the CCAA Proceedings as a much stronger and better-capitalized business focused on achieving the full potential of the Scully Mine and provide employment for Labrador West for generations to come,” stated Tacora executive vice president and chief financial officer Heng Vuong in the release.

Champion Iron Limited has been working through due diligence and moving forward on the Kamistiatusset (“Kami”) Project, potentially a new iron mine in Labrador. The company currently operates the Bloom Lake mine, on the Quebec side of the border in the Labrador Trough.

Kami—located about seven kilometres southwest of Wabush and 10 kilometres to the south of Labrador City, shipping out of Sept-Îles in Quebec—would start with an estimated 25-year mine life. The project is currently under environmental assessment. The proposal includes a temporary camp for workers during construction as well as a permanent camp, housing up to 600 people during regular operations. “It is assumed that most of the operating employees will reside within the camp, however, some provisions will be made for alternate accommodation within the towns of Wabush and/or Labrador City,” the environmental registration states.

The biggest player in the region is Rio Tinto and the Iron Ore Company of Canada. The company is leaning into low-carbon iron ore as a critical mineral for “green steel.”

In response to questions, company external advisor Amy Stoodley stated steel demand globally is projected to increase 10-40 per cent by 2050, and customer needs are evolving. “In alignment with our business strategy, Rio Tinto IOC has an agreement to supply high-grade direct reduction (DR) iron ore pellets to H2 Green Steel, a leading developer of low-carbon steel. Our DR pellets will be a substantial part of the iron ore supply to H2 Green Steel’s flagship plant in Boden, Sweden, which will be one of the world’s first large-scale producers of low-carbon iron and steel. This partnership positions us at the forefront of the green steel movement,” she stated.

IOC president and CEO Mike McCann has been public about his interest in decarbonizing operations at the site, suggesting net zero operations by 2050. This year, IOC made progress in replacing its use of heavy fuel oil boilers in processing. A project is underway to install a 40-megawatt electric boiler, on track for completion by the end of the year. There is also a pre-feasibility study underway to test further substitution of heavy fuel oil with “renewable biofuel,” Atlantic Business Magazine was told. A pilot is planned for the second half of 2025. But to further address emissions, IOC needs more electrical power.

Labrador West Chamber of Commerce president Toby Leon emphasized the links between major projects, and how so much of the opportunity in Labrador is interconnected. He pointed to the power project as necessary for future IOC investments as an example.

Housing is also needed, he said. Without housing, recruitment will be even more challenging than it is at present. Like Griffin in Central, he said investments will be needed related to healthcare and education, saying the status quo in public infrastructure and overall services is “not where they need to be for us to attract families to the region.” He flagged the cost of travel in and out of the region as another constraint.

The Liberal government has made contributions to Labrador West infrastructure and improved some services, he said. Still, he suggested, an area with 10,000 people, contributing so much to the province and offering so much opportunity can’t be left begging for what it still needs. “I see the province as a partner in this because they probably have the most to gain of anyone, including the mining companies. So are they partners, or are they profit takers?” he asked.

“I see the province as a partner in this because they probably have the most to gain of anyone, including the mining companies. So are they partners, or are they profit takers?”

—Toby Leon, President, Labrador West Chamber of Commerce

Jordan Brown, NDP MHA for Labrador West, said there needs to be focused and sustained attention because the world wants natural resources like high-grade iron ore, yet things have already hit a wall for communities in his area. In June, he gathered a delegation including representatives from Labrador City and Wabush and headed to St. John’s, to talk about the growing infrastructure needs.

“I need houses. That is my number one thing right now. Because without houses everything else doesn’t make sense (…) I need places for healthcare workers to live, I need places for education workers to live. Even government services—I don’t have enough employees to run the government services here in Lab West,” he said, rattling off a long list of vacant positions.

Occupational Health and Safety has officers doing fly-ins from the island to Labrador West for inspections. Atlantic Business Magazine was told by the department it is due to a lack of appropriate housing. A regional economic development officer position in Labrador West has been vacant since 2020. Brown attributed that to the housing crunch too, disappointed the provincial government in particular hasn’t moved faster to respond. “They just want to get the resource out and get the royalty (…) That’s my biggest fear, is that they’re going to allow basically the exploitation of the resource without the people that actually live adjacent to the resource,” Brown said.

Change over time

Provincial Labrador Affairs Minister Lisa Dempster said she appreciates the needs, the interconnected issues and the opportunities on the line throughout Labrador. “It’s not all smooth sailing. There’s lots to be hopeful about, but we also have challenges and we’re working closely with community and community leaderships to try and make life a little easier,” she said.

On the south coast, asked about her own district, she flagged opportunity there in a variety of natural resource interests but particularly in the fisheries with the “model co-op” Labrador Fishermen’s Union Shrimp Company, five processing facilities, and more opportunity in tourism.

She said government recognizes that if you want to entice young fishers, engineers, doctors or skilled trades professionals to an area, they’re probably going to have families. And those families are going to need essential services and amenities.

Historically, as per the 1974 Royal Commission on Labrador, “Labrador has suffered generations of neglect.” It has been a long game of catch-up ever since.

It’s impossible to list everything the provincial government has contributed to improvements in Labrador in recent years. Readying for a celebration of the 50th anniversary of the Labrador flag, Dempster mentioned some highlights including improvements in telecommunications, ferry services and roads. The Trans-Labrador Highway, for example, started in the 1980s, continued under former premier Brian Tobin in the late 1990s, and advanced bit-by-bit until completion. Two years ago, Dempster and then-Transportation Minister Elvis Loveless walked the last kilometre of the 1,100 km road connecting the Labrador West border to the Labrador Straits border. “It was a tremendous feeling,” she said. There have also been investments in education and healthcare—though they still need work.

At the end of July, the Province announced it would be accepting expressions of interest from companies interested in potential development of the Julienne Lake Iron Ore deposit—another potential mining site for Labrador West. The immediate discussion wasn’t about new jobs and new income. It was about what it would mean in Labrador City, in Wabush, and how locals could get a share of any new investment.

Looking back to the coast, to Nain, where the NGC’s Garry Best traveled, he left a community where people have again been limited by community needs. Nain was one of the communities visited by Federal housing advocate Marie-Josée Houle, who issued a report in 2022 blasting the failure of governments to support housing for Labrador Inuit. She also visited Hopedale and heard from individuals from other Indigenous communities, reporting the housing issue in northern communities to be not just a direct result of colonialism, but “a staggering failure by successive federal, provincial and territorial governments over many decades to invest in and respect the human right to adequate housing of Inuit.” A year later, when a November 2023 CBC investigative report from journalist Ariana Kelland reiterated the need for repairs and new builds, a spokesperson for Newfoundland and Labrador Housing said there had been problems securing contractors in Labrador.

Having more Labrador-based contractors and staff, limiting fly-in and fly-out work arrangements in the West, securing more opportunities from major project investments overall… Labradorians see the opportunities. The question now is how exactly businesses and governments will respond.