Champion Iron subsidiary, Quebec Iron Ore Inc., Granted C$5.2 Million in Financial Assistance from Government of Quebec’s “Green Fund” for Energy Conversion Projects at its Bloom Lake Mine, Fermont, Quebec
Champion Iron subsidiary, Quebec Iron Ore Inc., Granted C$5.2 Million in
Financial Assistance from Government of Quebec’s “Green Fund” for Energy
Conversion Projects at its Bloom Lake Mine, Fermont, Quebec
Montréal (Québec), Canada, June 5, 2017 : Champion Iron Limited (ASX: CIA, TSX: CIA)
(“Champion” or the “Company”), is pleased to announce that it s subsidiary Quebec Iron Ore Inc.
(“QIO”) has been granted C$5.2 million in financi al assistance from the Government of Quebec’s
“Green Fund” in connection with two energy conversion projects at its Bloom Lake Iron Mine
(“Bloom Lake”), located near Fermont, Quebec. The grant was announced at the Bloom Lake site,
earlier today, by Mr. Pie rre Arcand, Minister of Energy and Natural Resources , Minister responsible
for the Plan Nord and the Minister responsible for the Côte -Nord region. The announcement also
included the participation of Mr. Michael O’Keeffe, Chairman and CEO of Champion and Q IO, and it
was attended by members of the media and Champion and QIO personnel.
Financial assistance from the Green Fund falls within the framework of the Government of Quebec’s
“EcoPerformance Program under the 2013-2020 Action Plan on Climatic Change”.
The first energy conversion project at Bloom Lake involves the replacement of a steam boiler which
had operated utilizing light fuel oil with an electrode steam boiler in the plant's main boiler room.
The new boiler will meet a significant portion of the d emand for process steam as well as mid -
season heating requirements. The switch from fuel oil to electric heating will not only reduce the
fuel consumption of the mine, but also reduce the environmental footprint and operating costs.
The second project invo lves the installation of an overhead conveyor for the transport of iron ore.
The mined ore was historically transported by trucks with a 240 tonne capacity to the crusher and
then transported on a conveyor to the storage site. The new overhead conveyor wil l significantly
reduce the use of trucks, thus reducing QIO’s diesel consumption by a projected 3,400,000 litres.
Significantly, the two energy conversion projects will reduce Bloom Lake’s greenhouse gas emissions
by 19,689.2 tonnes equivalent CO 2 per year, which is equivalent to removing approximately 5,800
light vehicles from roads annually.
Minister of Energy and Natural Resources, Mr. Pierre Arcand, stated: “With the 2030 Energy Policy,
our government has set ambitious targets for the use of less harmfu l energy sources and the
efficiency with which we use them. It is by supporting companies such as Quebec Iron Ore, which
already participates fully with our energy transition goals, that we will succeed in developing and
modernizing Quebec's economy.”
Michael O’Keeffe, Chairman and CEO of Champion and QIO, added: “This announcement is part of a
broad plan to ma ke our facilities more streamlined and energy -efficient in order to minimize our
environmental footprint. Our goal is to restart the Bloom Lake Mine and realize on the g reat
potential it has for the benefit of local and indigenous communities, while keeping at the forefront
our respect for the environment with the complicity of our first-time partner, the Government of
Quebec."
About Bloom Lake
On April 11, 2016, the Company, through its subsidiary QIO, acquired the Bloom Lake assets from
affiliates of Cliffs Natural Resources Inc. that were subject to restructuring proceedings under the
Companies’ Creditors Arrangement Act (Canada). Québec Iron Ore Inc. is 63.2% owned by the
Company, with the remaining 36.8% equity interest owned by Ressources Québec, acting as a
mandatory of the Government of Quebec.
The Bloom Lake property is located on the south end of the Labrador Trough, approximately 13 km
north of Fermont, Quebec, and 10 km north of the Mount -Wright iron ore mining operation of
ArcelorMittal Mines Canada. The Bloom Lake Mine is an open pit truck and shovel operation, with a
concentrator. From the site, iron concentrate can be transported by rail, initially on the Bloom Lake
Railway, to a ship loading port in Sept-Iles, Québec.
The Bloom Lake Mine has already been authorized for operation under t he federal and provincial
environmental authorities. The project was subject to an environmental impact assessment process
under Section 31.1 of the Québec Environment Quality Act , which led to the first decree issued by
the Quebec government in 2008 autho rizing mining activities at the Bloom Lake site . An updated
positive Feasibility Study on Bloom Lake has been completed and is available under the Company’s
profile on SEDAR (www.sedar.com).
About Champion
Champion is an iron development and exploration co mpany, focused on developing its significant
iron resources in the south end of the Labrador Trough in the province of Québec. Following the
acquisition of its flagship asset, the Bloom Lake iron ore property, the Company’s main focus is to
implement upgra des to the mine and processing infrastructure it now owns while also advancing
projects associated with improving access to global iron markets, including rail and port
infrastructure initiatives with government and other key industry and community stakeholders.
Champion’s management team includes professionals with mine development and operations
expertise who also have vast experience from geotechnical work to green field development, brown
field management including logistics development and financing of all stages in the mining industry.
For further information please contact:
Michael O’Keeffe, Executive Chairman and CEO at Tel. +1 514-316-4858
David Cataford, COO at Tel. +1 514-316-4858
For additional information on Champion Iron Limited, please visit our website at www.championiron.com
This news release includes certain information that may constitute "forward -looking information" under
applicable Canadian securities legislation. All st atements, other than statements of historical facts, included in
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assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and
other factors which may cause the actual results and future events to differ materially from those expressed or
implied by such forward -looking information, including the risks identified in Champion’s annual information
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such forward -looking information. Accordingly, readers should not place undue reliance on forward -looking
information. All of Champion ’s forward -looking information contained in this press release is given as of the
date hereof and is based upon the opinions and estimates of Champion’s management and information
available to management as at the date hereof. Champion disclaims any intent ion or obligation to update or
revise any of its forward -looking information, whether as a result of new information, future events or
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