FERMONT, Que. - It's being billed as a keystone in the Charest government's Plan Nord: the biggest open pit mine in Quebec is about to get a whole lot bigger.
Global steel giant ArcelorMittal announced Friday it will create 8,900 construction and mining jobs with a $2.1 billion expansion of its Quebec mining complex near Labrador.
Premier Jean Charest said Quebec is in an ideal position to capitalize on the high demand for steel in China and India.
"We look ahead and we see about 30 years of steady demand," he told reporters at the mine Friday.
The company said the major expansion of its Canadian operations will help it raise annual production of iron ore to 24 million tons from 14 million tons by 2013.
ArcelorMittal Mines Canada is also evaluating doubling its iron ore pellets output to 18.5 million tons, the steelmaker said.
The investment of its Mont-Wright mining complex, which is situated just 15 km from the Labrador border, and construction at Port-Cartier will create 8,000 construction jobs and 900 permanent mining positions.
The company is the world's largest steel producer and owns the former Dofasco Inc. of Hamilton.
Peter Kukielski, head of mining for ArcelorMittal, said the Canadian mining complex is a flagship asset for the global steelmaker, offering considerable expansion opportunities.
"We have already announced our intention to grow our iron ore production to 100 million tons by 2015 and this expansion forms an important part of that,'' he stated in a release announcing the expansion.
Kukielski heaped praise on Charest but promised the company was committed for the long-term, regardless of who's in power.
"Our operations will sustain any change in any political environment," he said.
Charest said negotiations will take their course.
ArcelorMittal was formed a few years ago by the merger of Asian and European steelmakers and now operates mills, mines and other businesses in more than 60 countries.
It is a leader in all major global steel markets, including automotive, construction, household appliances and packaging and has an industrial presence in over 20 countries.
In 2010, ArcelorMittal had revenues of $78.0 billion and crude steel production of 90.6 million tonnes, representing about six per cent of world steel output.
All along, Charest has driven home the message that sustainable development is at the heart of the Plan Nord.
Earlier this week he took to the air, announcing a vast new protected parkland on Cree territory in the James Bay watershed.
But there are obstacles looming for the Plan Nord.
Innu chief George-Ernest Gregoire grew up near the mine, and he's supporting its expansion. His community, however, just voted to block another of Charest's key projects. Residents of the Uuashat Maliotenam Innu nation want no part of the Romaine River Hydro Project.
Charest, though, said negotiations will take their course.
with files from The Canadian Press
