Labrador Iron Mines
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Labrador Iron Mines is a resource extraction company planning to exploit multiple mine sites in the Schefferville region of Newfoundland and Labrador.[1][2][3][4][5]
History
[edit]The Schefferville region had iron mines in the 1950s.[5] A rail line was constructed from Schefferville, south approximately 600 kilometres (370 mi) to Sept-Îles, Quebec, a seaport on the Gulf of St. Lawrence.[1][2] Labrador Iron Mines first shipments, in April 2012, were the first shipments in thirty years.
In January 2013, the firm announced that it had entered into an agreement with a syndicate of underwriters led by Canaccord Financial for a C$25.2-million equity financing.[6]
Projects
[edit]Labrador Iron Mines is currently developing seven mine sites in the Schefferville area.[4] The "James site" was the first to ship ore. Like most ore bodies, and unlike the Baffinland Iron Mines, the ore requires various refining steps, prior to being made into iron or steel.[7]
Price fluctuations
[edit]Labrador Iron Mines was formed when iron ore prices were at a record high, making recovery of ore from known ore bodies economically viable.[8][9] The firm was able to sell ore from its first two quarters of production at a price per ton that would have been viable, once production was at full volume. But in August, 2012, in its third quarter of production, the price of iron ore took a significant drop, and the firm started to defer capital expenditures.
References
[edit]- ^ a b "CANARAIL awarded major contract in Northern Quebec and Labrador: Quebec's rail expert working with Labrador Iron Mines". Montreal: Newswire. 2012-09-06. Archived from the original on 2016-03-28.
- ^ a b
"Labrador Iron Mines to cut costs". CBC News. 2012-08-15. Archived from the original on 2012-08-16.
The Toronto-based company missed expectations as it lost $10.6 million in its first quarter as a slowing global economy and high Chinese ore inventories caused a delay in shipments from the Port of Sept-Îles in eastern Quebec. The amount included $9.8 million in amortization charges.
- ^
"LIM: Labrador Iron Mines Holdings Limited". Labrador Iron Mines Holdings Limited. 2012-11-15. Archived from the original on 2012-11-24.
The James Mine is connected by a direct rail link to the Port of Sept-Îles, Quebec.
- ^ a b
"Labrador Iron Mines: Schefferville Area Projects". Labrador Iron Mines Holdings Limited. 2012-11-15. Archived from the original on 2012-12-15.
Our Schefferville Projects are located in the western central part of the iron-rich Labrador Trough, one of the most prolific iron ore producing regions in the world. The Schefferville area has a tradition in iron ore production that dates back to the early 1950s.
- ^ a b "Labrador Iron Mines: Project transportation and infrastructure". Labrador Iron Mines Holdings Limited. 2012-11-15. Archived from the original on 2013-07-19.
- ^ Labrador Iron Mines announces C$25.2m equity financing, International: Mining Weekly, 2013
- ^
"Labrador Iron Mines: Project transportation and infrastructure". Labrador Iron Mines Holdings Limited. 2012-11-15. Archived from the original on 2012-03-19.
The Silver Yards beneficiation plant, designed to produce lump, sinter and ultra fines products, was commissioned in June 2011 with the completion of Phase 1 and included primary and secondary crushers, screens, scrubbers and conveyers. In the fall of 2011, the Phase 2 expansion of the plant was completed, which was designed specifically for the recovery of fines material. During the initial, start-up season, the plant gradually improved its performance and achieved throughput of over 8,000 tonnes per day in October. By the end of the 2011 operating season, approximately 570,000 tonnes of ore had been fed to the plant, yielding approximately 230,000 tonnes of lump and sinter fine products.
- ^
Julie Gordon (2012-12-03). "Steel slump cramps Labrador Trough's style". Mineweb. Archived from the original on 2012-12-06. Retrieved 2012-12-04.
Labrador Iron Mines Holdings Ltd, a new producer in the region, slashed capital spending and deferred projects to 2013. The junior said it won't restart operations in the spring unless it feels prices will stay above $110 next year.
- ^
Ross Marowits (2012-11-15). "Labrador Iron Mines says it remains viable if higher ore prices are sustained". Canadian Press. Archived from the original on 2012-11-19.
"The events of August and early September did take us by surprise and we were not budgeting to be experiencing an iron ore price of less than $90 (per tonne)," chairman and CEO John Kearney said Thursday during a conference call.