A Labrador mining company is losing money after a Quebec North Shore & Labrador train carrying ore derailed between Wabush and Labrador City early Tuesday morning.

Wabush Mayor Jim Farrell says the accident is taking its toll on the town's largest employer, Wabush Mines. "The price of iron ore is great these days and they're trying to get out whatever they can," said Farrell. "They're going to be down four or five days altogether without shipping any concentrate. It's certainly a financial burden on the company."

Normally there are three locomotives in an QNSL train, and each train would have 210 to 240 cars. The company's trains are used mainly to move iron ore pellets from Labrador to Sept-Iles.

Cleanup work following the derailment was expected to be finished sometime on Friday.

Huge pieces of heavy equipment are currently working to move the 26 ore cars that went off track.

A snowmobile collided with one of the train cars shortly after the derailment, sending one man to hospital. The Royal Newfoundland Constabulary is investigating that part of the incident.

The company that owns the train, the Iron Ore Company of Canada, is also investigating the derailment.

The full cost of the damage and repairs ensuing from the derailment is not expected to be known for several weeks.