Iron Ore Company of Canada to proceed with Wabush 3 project
Iron Ore Company of Canada to proceed with Wabush 3 project
TORONTO
,
Feb. 23, 2017
/CNW/ - Iron Ore Company of
Canada
("IOC") issued a media statement today stating that it will proceed with the development of the
Wabush
3 pit at its mine near
Labrador City, Newfoundland
and
Labrador
. Labrador Iron Ore Royalty Corporation (LIORC") is fully supportive of the IOC decision to
develop
Wabush
3 due to the favourable project economics. The LIORC royalty applies to the
Wabush
3 deposit. The IOC media statement follows.
Media Statement
IOC will proceed with the
Wabush
3 project following the approval of a
CAD$79 million
investment.
Wabush
3 is a new pit that will be developed within IOC's existing mine operations to extend the life of the mine, reduce operating costs and increase production
of quality grade iron ore concentrate and pellets.
IOC Chief Executive Officer and President
Clayton Walker
said "This value-driven investment will deliver significant benefits for our business, employees and
surrounding communities in Labrador West and
Sept Iles
for many years to come, by increasing the life of the mine and allowing us to offer continued
employment opportunities.
"The
Wabush
3 pit is IOC's best option to access low-cost, quality ore and provides a compelling opportunity to make our business more competitive by reducing
operating costs during a period of increasing iron ore price volatility.
"I would like to thank IOC employees, Unions, Union leadership and members of the community for the ongoing support they have demonstrated, which helps to
build trust in our ability to create a viable business for future generations."
The
Wabush
3 pit will be developed adjacent to Luce pit. The Government of
Newfoundland
and
Labrador
has released the
Wabush
3 Open Pit Mine Project from
the Environmental Assessment process and construction is expected to start in the second quarter of 2017.
First ore from production mining is expected in the second half of 2018, helping IOC ramp up annual capacity from 18 million tonnes towards 23 million tonnes.
Wabush
3 will be fully integrated into IOC's overall Labrador City Operations, and will utilize its existing maintenance, ore delivery, processing and tailings
management facilities as well as other aspects of IOC's current infrastructure and activities in the region.
IOC is committed to modernizing its assets and operating model to achieve safer and more stable production, with the objective of being a lower cost producer of
quality grade iron ore concentrate and pellets for the steel industry, and make IOC the premier mining organization in
North America
.
SOURCE
Labrador Iron Ore Royalty Corporation
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/February2017/23/c2072.html
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For further information:
William H. McNeil, President & Chief Executive Officer, (416) 863-7133
CO: Labrador Iron Ore Royalty Corporation
CNW 13:41e 23-FEB-17