Labrador City and the Iron Ore Company of Canada (IOC) have renewed their grant agreement for another decade, beginning next year.

Mayor Fabian Benoit says the agreement will provide financial stability for the town, as IOC will make yearly contributions of about $9-million to the town’s operating budget. Those payments are in lieu of taxes.

The company agreed to reimburse the town for half of any reductions of the Municipal Operating Grant from the provincial government. It also accepts its share of any future cost increases which require higher taxes.

On top of that, IOC is covering a $1-million infrastructure grant in March that will help with capital improvements to municipal properties and streets.