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Miners in Labrador City, Newfound and Labrador, got some welcome news as the Iron Ore Company of Canada said it will limit its shut down of mining operations to five weeks.

IOC  had feared it may need to extend its shutdown to 13 weeks because of the declining global demand for steel.

However, the company announced it will be able to resume production in August.

George Kean, president of Union local 5795 of the United Steelworkers, said the five-week shutdown will begin July 7th, and workers have been instructed to take their annual leave at that time. He estimated that 450 people will be impacted through a combination of holiday time and layoffs.

Labrador City Mayor Graham Letto said the town had been operating under a cloud and can weather the five-week shutdown.

IOC put off expansion plans last year, citing the global economic downturn. Labrador City's largest employer Wabush Mines, which operates a competing mine near IOC, has already laid-off people and reduced production.