New Millennium Iron Corp. Announces a $12.8 Million Investment by TSMC in a Deep Water Dock With the Port of Sept-Iles for DSO Project

14 Aug 2012 06:00 ET

Marketwire Canada - NFD

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

New Millennium Iron Corp. ("NML" or the "Corporation") (TSX:NML) announced today that Tata Steel Minerals Canada Ltd ("TSMC"), a joint venture between Tata Steel and NML, has signed an agreement with the Sept-Iles Port Authority providing TSMC with access to a minimum of 5 million metric tons of annual shipping capacity from the new multi-user deep water dock facility to be located in the Bay of Sept-Iles at Pointe Noire. The Sept-Iles harbour is an ideal location for year round shipping in large ore carriers to Tata Steel's European plants.

Dean Journeaux, President and CEO of NML, said: "Upon completion of the new dock facility made possible in part by this investment, TSMC's DSO project will be assured of long term shipping access to Tata Steel Europe's plants. The new dock will enable TSMC to reduce costs associated with loading of vessels and shipping to Europe. This will make the Project a very competitive supplier to the steelplants."

Port Agreement:

The facility in Phase I is designed to have a total capacity of 50 million metric tons annually and is expected to cost $220 million. It is being financed by the Port of Sept-Iles, the Government of Canada and commitments from potential end-users. Construction is expected to be completed by the end of March 2014.

TSMC will invest $12.8 million for its interest, payable in two instalments over a one year period, the first of which was paid at time of signing. As a result of this investment, TSMC will receive favourable shipping rates at the dock facility.TSMC has a take or pay obligation based on a discounted rate applied on 50% of the reserved capacity.TSMC is entitled under the agreement to transfer all or a portion of its annual capacity and the associated take or pay obligation to other users of the dock. The term of the contract is 20 years, with TSMC having the option to renew for four further five year terms.

Full article at Reuters.

PS.  Quebec iron projects sure are getting exciting again.

Cheers,

Dave.