Meeting the Challenge of the 80's Cost Reduction Measures at the Iron Ore Company of Canada's Carol Project 1980-85

"Labrador City is located in the southwestern portion of Newfoundland-Labrador, approximately 965 kilometers north-east of Montreal. The mine and beneficiation complex of the Iron Ore Company of Canada, known as the Carol Project, is situated 535 metres above sea level in a climatic region characterized by cold winters and short, cool summers.HistoryThe Iron Ore Company of Canada commenced work in the area in 19 4 9' however, it was not until 1958 that the decision was made to proceed with mining operations. The ore body consists of Specular Hematite (Fe203) and Magnetite (Fe304) with small quantities of Limonite and Geothite. The average grade of the ore bodies is 39% iron.The mining facilities, crushing plant, and concentrator were in operation by the early part of 1962. In the summer of 1961, a decision was made to build a pelletizing plant adjacent to the concentrator. This plant was designed, erected and placed in operation during 1962 and the first half of 1963. Since the completion of the pelletizing plant, additional expansions to both the pellet plant and concentrator have taken place in 1967 and 1973. Today, the Carol Project has the capacity to produce 20 million tonnes of concentrate from which 10.5 million tonnes of pellets can be produced.The period 1980-85 spans a period of energy crisis, world-wide recession, and a consequent re-structuring of the North American steel industry as it struggles to survive in an arena of excess world steel making capacity, government subsidized industries, and the increasing competition from overseas and from developing countries.The media headlines over the past few years echo the woes of the industry and the strategy plans for survival of the fittest. Today's buzz words are foreign competition, steel import quotas, joint ventures, employee participation, work rules, quality, productivity, and state of the art technology."