Lying at the base of the Wapussakatoo Mountains, Labrador City is adjacent to one of the richest iron ore formations in Canada. The ore was discovered in 1892, and the mineral rights were acquired in 1936 by the Iron Ore Company of Canada (IOC). In 1958 formal mining operations began at Carol and Smallwood Mines, and by 1959 construction of a planned townsite had begun by the shore of Carol Lake. In 1960 a railway linked Carol Lake to Quebec. When incorporated in 1961, Carol Lake was renamed Labrador City.
Economy and Labour Force
By 1968 the town, with a population of nearly 8,500, was the largest in Labrador. Constructed by the Iron Ore Company of Canada, by 1960 it had an airstrip, a hospital and numerous churches and schools. Because Labrador City's economic fortunes are tied to those of world markets for iron ore, employment has fluctuated accordingly.