Feb. 8, 2011 (Canada NewsWire Group) --
TORONTO, Feb. 8 /CNW/ - Iron Ore Company of Canada (IOC) announced today the resumption of Phase two of its Concentrate Expansion Program (CEP2). The second of three stages in the expansion program, which was suspended in 2008 due to the global financial crisis, CEP2 will bring IOC's annual concentrate capacity from 22 million tonnes to 23.3 million tonnes (see attached IOC press release).When completed this will result in an increase in the royalty revenue received by Labrador Iron Ore Royalty Corporation from IOC, subject to future prices and exchange rates.
IOC resumes Phase two of iron ore expansion program
(Canada) Labrador City, Sept-Îles, Montreal, St. John's, February 8, 2011 - Today, the Iron Ore Company of Canada (IOC) announced the resumption of Phase two of its Concentrate Expansion Program (CEP2). The second of three stages in the expansion program, which was suspended in 2008 due to the global financial crisis, CEP2 will bring IOC's annual concentrate capacity from 22 million tonnes to 23.3 million tonnes.
"IOC is excited to restart the second phase of our Expansion Program," said Zoë Yujnovich, its President & CEO. "Not only will the project allow us to become a more competitive business, grow as a company and reach our full operational potential, it will also permit us to further contribute to the economy and to sustainable employment opportunities for our employees."
CEP2 will see IOC invest C$289 million to expand its magnetite processing facility and add new spiral lines to its gravity separation circuit. It will also include purchase of additional mining equipment, railway cars and a locomotive as well as upgrades at the Wabush terminal sub-substation.
"The project will commence immediately, and take advantage of the short construction season in Labrador West," said Yujnovich. "In an effort to work efficiently, yet responsibly and sustainably, we have a goal of commissioning the spirals by mid-2012 and completing the new magnetite recovery circuit by year-end, 2012."
The first stage of IOC's Concentrate Expansion Program (CEP1) comprised an overland conveyor to remove bottlenecks in the current ore delivery system, a fourth autogenous grinding mill to increase primary grinding capacity, and associated mine and rail equipment and is scheduled to be completed by end-year 2011.
"We have a long-term vision of growing our business," said Yujnovich. "The Expansion Program allows us to take a major step toward achieving that goal - expanding our business in a safe, responsible and sustainable manner."
"Moreover, the investments associated with CEP2 will lay the foundation for further growth and development of our annual production to 26 million tonnes."
IOC is the largest manufacturer of iron ore pellets in Canada and its customer base comprises North American, European and Asian steel producers. IOC operates a mine, concentrator and a pelletizing plant in Labrador City, Newfoundland and Labrador; port facilities in Sept-Îles, Quebec; and a 418-kilometer railroad that links the mine to the port. IOC has approximately 1900 employees. Its shareholders are Mitsubishi Corporation (26.18%), Labrador Iron Ore Royalty Corporation (15.10%) and the international mining group Rio Tinto - its major shareholder (58.72%) and operator - which operates in more than 40 countries throughout the world.
Mrs. Heather Bruce-Veitch
Manager of External Relations
Info: (709) 944-4292
Bruce C. Bone
President & Chief Executive Officer