IOC Revives USD800 million Expansion Plans
Canada's biggest iron ore producer said yesterday that it will spend US$800 million to reinstate an expansion of capacity at its Labrador City mines and concentrator in the western part of the Canadian province of Labrador.
The programme was suspended in the middle of 2008 when steelmakers slashed production and iron ore fell to $40 U.S. a tonne compared to around $180 now.
The first stage of the programme – costing $435 million - will add 4 million tonnes of annual capacity to bring it to 22 million tonnes by 2012 and 26 million tonnes by 2015.
IOC will upgrade its conveyor system and add a fourth autogenous grinding mill, besides expanding the mines. It says it has about 4 billion tonnes of known reserves in Quebec-Labrador.
IOC majority shareholder Rio Tinto will invest $235 million in the revived first-stage expansion, with fellow shareholders Mitsubishi and Labrador Iron Ore Royalty Income Fund will provide the balance.
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