LABRADOR – Tata Steel Minerals Canada (TSMC), a joint venture of India’s Tata Steel (80%) and Montreal’s New Millennium Iron Corp. (20%), has signed an agreement with Labrador Iron Mines Holdings (LIM) of Toronto. The deal involves shared infrastructure as well as development of LIM’s Howse and TSMC’s Timmins 4 deposits, both located near Schefferville, QC.
The companies agreed to co-operate on transportation, i.e. the rail line that will start near TSMC’s Timmins area processing plant and go through LIM’s Silver Yard plant to the main line.
They will also co-ordinate their participation in new port facilities at Sept-Iles, QC. The plan to share access and terminal facilities at the port’s new deep sea, multi-user dock.
The development of the two iron ore deposits will be rationalized. LIM’s Howse deposit has a historical resource of 28 million tonnes, and is only 4 km from TSMC’s Timmins plant. TSMC will acquire a 51% interest in LIM’s Howse deposit, and LIM may earn up to a 100% interest in TSMC’s Timmins 4 deposit with its resource of 1.7 million tonnes for consideration of $3 million recoverable from sales. TSMC will make a $30-million cash payment to LIM, and TSMC will have an option to boost its interest in the Howse deposit to 70% for an additional $25 million.
More information is available at LabradorIronMines.ca, NMLiron.com and TataSteelCanada.com.