The Scully mine in Wabush, Labrador. Courtesy of Tacora Resources

The Scully mine in Wabush, Labrador will restart in 2019 after closing in 2014, owner Tacora Resources said on Tuesday.

The company received US$212 million in private equity and debt financing, which, in combination with another US$64 million in mining equipment debt financing, will completely finance the mine’s reopening.

“We are extremely pleased to have the Scully mine restart fully financed and to move forward with hiring the workforce and implementing the various commercial contracts and capital projects to bring the Scully Mine back to life,” Larry Lehtinen, Tacora’s executive chairman and CEO, said in a statement.

The Minnesota-headquartered iron mining company acquired Scully in July 2017. Its December 2017 feasibility study, authored by G Mining Services and Ausenco, reports that Scully has total proven and probable reserves of 443.7 million tonnes at an average grade of 34.83 per cent iron and 2.58 per cent manganese, and measured and indicated resources of 734 million tonnes at an average grade of 34.6 per cent iron. .

The study also gave Scully a 26-year mine life with the opportunity for expansion, and an average annual production of six million tonnes per year of iron ore concentrate with an iron grade higher than 65 per cent. It anticipated the site’s initial capex to be $205.5 million.

The reopening of the mine is expected to provide more than 250 jobs in the region, according to the CBC.

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“It is great news for Labrador West and indeed the entire province that Scully mine in Wabush is restarting,” said Siobhan Coady, Newfoundland and Labrador’s minister of natural resources. “It means good, long-term jobs returning to this vital mining region.”

Nearly 400 workers lost their jobs in 2014 when Scully’s previous owner, Cliffs Resources, left Canada and shuttered the mine.

Tacora will sell its product to one of its equity investors, Cargill, which extended its long-term takeoff agreement until 2033.

The company said it has completed consultations with local Indigenous groups. Innu Nation’s Grand Chief Gregory Rich said the Nation “looks forward to cooperative implementation…of our Impacts and Benefits Agreement, and to continued cooperation on environmental protection measures.”

The IBA is expected to create employment for Innu Nation members and partners, as well as procurement opportunities.