TORONTO, Feb. 27 /CNW/ - Labrador Iron Ore Royalty Income Fund (the
"Fund") attaches a press release issued today by Iron Ore Company of Canada
("IOC") announcing that due to the sharp drop in world demand for raw
materials, including iron ore, IOC found the refurbishment of its Sept-Iles
pellet plant (which has been idle since 1981 and was partially refurbished in
2001) to no longer be viable and decided not to proceed with the project. The
trustees of the Fund support this decision as it will allow IOC to concentrate
its efforts on its current operations. The impact of this write down has been
reflected in the Fund's financial statements for the year ended December 31,
Iron Ore Company of Canada
IOC ceases efforts to develop Sept-Iles pelletizing plant
Montreal, Sept-Iles, Labrador City - February 27, 2009 - Iron Ore Company
of Canada (IOC) announces that, following a decision by its Board of
Directors, it has ceased efforts to develop the Sept-Iles pelletizing plant.
"The decision has become necessary in the context of the global economic
recession," said Terence Bowles, President and CEO, IOC. "We are experiencing
an unprecedented drop in world demand for raw materials, including steel and
iron ore. As a result, the Sept-Iles pelletizing plant restart project is no
longer viable and we have decided not to proceed with it and concentrate on
initiatives that can add more value."
Opened in 1973, the Sept-Iles pelletizing plant has been idle since 1981.
It was partially refurbished during 2000-2001. The current decision will
therefore have no impact on the number of IOC employees.
The pellet plant buildings will be kept intact for the foreseeable
future, as they house important utilities that service IOC rail and port
facilities. The dismantling and removal of processing equipment will commence
IOC is the largest manufacturer of iron ore pellets in Canada and its
customer base covers North American, European, and Asian steel producers. The
Company operates a mine, concentrator and pelletizing plant in Labrador City,
Newfoundland and Labrador, as well as port facilities located in Sept-Iles,
Quebec. It also operates a 418 kilometre railroad that links the mine to the
port. IOC has approximately 2,000 employees, and its major shareholder and
operator is the international mining group Rio Tinto, which has activities in
more than 40 countries throughout the world.
Tel.: +1 514-217-6253
For further information:
For further information: Bruce C. Bone, Chairman & Chief Executive
Officer, (416) 863-7133, 26th Floor, 40 King Street West, Toronto, Ontario,
M5W 2X6, Tel: (416) 863-7133, Fax: (416) 863-7425