Canadian Mining Journal

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IRON ORE: LIM signs two-year deal with IOC

LABRADOR – Labrador Iron Mines Holdings of Toronto has signed a new iron ore sale agreement with the Iron Ore Company of Canada for the sale of all of LIM's production for 2013 and 2014. LIM sold approximately 2.0 million tonnes of iron...



LABRADOR – Labrador Iron Mines Holdings of Toronto has signed a new iron ore sale agreement with the Iron Ore Company of Canada for the sale of all of LIM’s production for 2013 and 2014. LIM sold approximately 2.0 million tonnes of iron ore to IOC during its first two years of operation.

IOC has agreed to make progressive payments for the iron ore as it is resold. The price will be calculated on the monthly average of the market industry, subject to adjustments.

LIM has also entered into an off-take financing agreement with RB Metalloyd, an international commodity trading house. LIM is to receive an advance payment of US$35 million to be credited against future sales of a minimum of 3.5 million tonnes of iron ore during 2013 and 2014. RBM has an agreement with IOC under which RBM will buy the LIM iron ore from IOC on an FOB Sept-Iles, QC, basis.

LIM is targeting production of 1.7 million to 2.0 million tonnes of direct shipping sinter fines and lump iron ore from its Schefferville area mines this year.

LIM has several positions vacant at the mine. See LabradorIronMines.ca to determine if one interests you.