Government has confirmed that cuts are coming to operations at IOC in Labrador West.

According to AllNewfoundlandLabrador the economic driver will be decommissioning drilling machinery, and cancelling the purchase of certain equipment while parking other pieces of machinery.

The publication says an internal memo cites conditions, reliability constraints and cost pressures for limiting production.

It comes after the mining giant laid off staff late last year.

The matter was raised in the House of Assembly by Liberal member for Cartwright-L’Anse au Clair, Lisa Dempster.

“What can the minister tell us about these cuts to a vital part of Labrador’s economy?” Dempster asked.

Energy Minister Lloyd Parrott blamed the situation on a lack of oversight under the previous government. “They’re in a situation now where they have to make up for it, and readjust, and that’s exactly what they’re doing” says Parrott. “They’re coming here to meet with us on May 19th, we have been helping them through the way and we will continue to help them.”)

Dempster says what Lab West needs is an opportunity for growth through greater access to electricity. She says IOC and other companies are watching the potential for expansion “slip away” without an MOU on Churchill Falls expansion.

Minister Parrott says government is talking to the major mining companies on a regular basis.

Including IOC, Kami, Tata, Takora and Iron Bear, “and they know when they are ready to build, they will have electricity.”