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
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
"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
"Moreover, the investments associated with CEP2 will lay the foundation
for further growth and development of our annual production to 26
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
SOURCE Labrador Iron Ore Royalty Corporation
For further information:
Bruce C. Bone
President & Chief Executive Officer