IRON ORE EXPANSION: Second phase of expansion at IOC concentrator to cost $227-M

LABRADOR - Rio Tinto has given the go-ahead for the next US$227-million step to expand production at Iron Ore Company of Canada's concentrator at Labrador City. IOC is owned by Rio Tinto (59% and operator), Mitsubishi (26%) and Labrador Iron Ore Royalty Income Fund (15%). The project will expand production by 40% to 26 million t/y of iron concentrate.

This is the second phase of a three-stage expansion announced in May 2010 with a US$400-million price tag. The current project will boost spiral and magnetite concentrate production to 23.3 million t/y beginning in 2013. Rio said that recent studies have highlighted an opportunity to improve time to market through bringing forward some capital items from the third stage, resulting in a higher level of production earlier.

Construction is ready to start immediately with commissioning to take place by the end of 2012.

The IOC website is at www.IronOre.com.