Saturday, February 28, 2009

Quebec Iron Ore Plant Will Not Reopen

The Iron Ore Company of Canada (IOC) and its largest shareholder Rio Tinto no longer plan to restart the Sept-Iles pelletising plant, in Quebec, after a sharp decline in global iron ore demand has made the plant unviable.

The plant was opened in 1973, but has been idle since 1981. It was partially refurbished during 2000 and 2001, but the decision not to restart will not result in any job cuts, the company said.

The pellet plant buildings will be kept intact “for the foreseeable future”, as they house important utilities that service IOC rail and port facilities, but the dismantling and removal of processing equipment will get under way soon.

Rio owns 58,7% and operates IOC, while Mitsubishi Corporation holds 26,18%, and the Labrador Iron Ore Royalty Income Fund has 15,1%.

The firm is the largest manufacturer of iron ore pellets in Canada.

Source: Creamers Mining Weekly

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