Iron ore investment

Consolidated Thompson loses bid for Wabush mine

Dofasco has exercised its 90-day option to buy out its partners in the Wabush Mines iron ore joint venture near Wabush, Labrador, putting a halt to plans by Consolidated Thompson Iron Mines to purchase a majority interest. Dofasco bought out partners Stelco (44.6%) and Cleveland-Cliffs (26.8%) on behalf of parent company Arcelormittal of Luxembourg.

Despite this setback, development of Consolidated Thompson’s Bloom Lake iron ore project continues 10 km north of the Mont-Wright iron operation, Duplessis county, Que., with production to begin in 2009. Permitting is progressing and pre-production work on the property is scheduled to start shortly. The Bloom Lake technical report is available at www.ConsolidatedThompson.com.