Labrador Iron Mines to help CN study Labrador line

2012-08-10 08:09 ET - News Release

Mr. Rod Cooper reports

LABRADOR IRON MINES COLLABORATES WITH CN IN THE FEASIBILITY STUDY OF A NEW MULTI-USER RAIL LINE AND PORT TERMINAL FACILITY

Labrador Iron Mines Holdings Ltd. (LIM) will collaborate with the Canadian National Railway Company (CN) and the Caisse de depot et placement du Quebec, as well as a group of mining companies, to work with CN on a feasibility study to develop a new, continuous multiuser rail line from the northern Labrador Trough to the Port of Sept-Iles. The feasibility study will also evaluate a new terminal handling facility located at the Port of Sept-Iles.

"CN is the largest carrier of iron ore in North America, and we are pleased to work with a highly regarded and established transportation company in this feasibility study," stated Rod Cooper, president and chief operating officer. "The development of a new railway in the Labrador Trough is of great interest to LIM, as it would provide optionality for long-term rail capacity, with the potential to provide greater efficiencies and optimization of rail access. In addition, a new terminal handling facility at the Port of Sept-Iles would complement the planned development of the new multiuser dock at the port, in which LIM is also participating. We are excited to move ahead with these developments, as they represent important steps to enhance long-term rail and port access for LIM's iron ore."

To advance the project timeline, CN has co-ordinated the timely start of upfront applications for regulatory approvals and permitting requirements for the project. This will also allow for appropriate consultation with first nations, local communities and other stakeholders.

As previously announced on July 18, 2012, LIM has agreed to participate with the Sept-Iles Port Authority in the development of its new multiuser dock facility at Pointe-Noire in the Port of Sept-Iles. Under the terms of the agreement with the Sept-Iles Port Authority, LIM has reserved an annual capacity of five million tonnes of iron ore, with a right to secure additional residual capacity.

Full article at Stockwatch.

PS.  Okay let see a bounce in Quebec iron ore plays.  This CN news should do the trick short term, longer term got to be about good operations that are profitable, iron ore prices also have to do well too.

Cheers,

Dave.