(Toronto, Ontario, August 10, 2012.) - Labrador Iron Mines Holdings Limited (“LIM” or the “Company”) (TSX:LIM) is pleased to announce its collaboration with the Canadian National Railway Company (“CN”) and La Caisse de dépôt et placement du Québec, as well as a group of mining companies to work with CN on a feasibility study to develop a new, continuous multi-user rail line from the northern Labrador Trough to the Port of Sept-Îles. The feasibility study will also evaluate a new terminal handling facility located at the Port of Sept-Îles.
“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-Îles would complement the planned development of the new multi-user 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 coordinated 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-Îles Port Authority in the development of its new multi-user dock facility at Pointe-Noire in the Port of Sept-Îles. Under the terms of the agreement with the Port Authority, LIM has reserved an annual capacity of 5 million tonnes of iron ore with a right to secure additional residual capacity.
About Labrador Iron Mines Holdings Limited (LIM)
Labrador Iron Mines (LIM) is Canada’s newest iron ore producer. We own a portfolio of direct shipping (DSO) iron ore operations and projects located in the prolific Labrador Trough. Initial production commenced at our 100%-owned James Mine in June 2011 and we recorded the sale of 400,000 tonnes of iron ore in our first start-up season. The first full production season commenced on April 2, 2012, with a sales target of 2 million tonnes of iron ore for the 2012 year.
LIM is focused on a strategic and robust growth plan arising from our portfolio of 20 iron ore deposits in Labrador and Quebec, all within 50 kilometres of the town of Schefferville. The James Mine is connected by a direct rail link to the Port of Sept-Iles, Québec. The area also benefits from established infrastructure including the town, airport hydro power and railway service. Starting with the James Mine and leading to the development of the expanding Houston flagship project, our objective is to provide shareholders with long-term value as we ramp up production and sales towards 5 million tonnes per year by 2015.
We are currently the only independently-owned Canadian iron ore producer listed on the Toronto Stock Exchange and trade under the symbol LIM.
For further information, please visit LIM’s website at www.labradorironmines.ca