February 9, 2011
Iron Ore Company of Canada Resumes Phase Two of Iron Ore Expansion Project
The Iron Ore Company of Canada (IOC), which Mitsubishi Corporation has 26.18% equity of, announced the resumption of Phase two of its Concentrate Expansion Project (CEP2) on February 8, 2011. The second of three stages in the expansion project, which was suspended in 2008 due to the global financial crisis, CEP2 will bring IOC’s annual concentrate capacity from 22 million tonnes to 23.3 million tonnes.
CEP2 will see IOC invest C$289 million to expand its magnetite processing facility (completion by year-end 2012) and add new spiral lines to its gravity separation circuit (commissioning by mid-2012). It will also include purchase of additional mining equipment, railway cars and a locomotive.
The first stage of IOC’s Concentrate Expansion Project, including introduction of an overland conveyor to remove bottlenecks in the current ore delivery system, CEP1 has started from May 2010. It will bring IOC’s annual concentrate capacity from 18 million tonnes to 22 million tonnes and is scheduled to be completed by end-year 2011.
Not only will the project allow IOC to become a more competitive business, it will also allow the company to further contribute to the economy and to sustainable employment opportunities for its employees. Furthermore, the project will lay the foundation for further growth and development potential of IOC’s annual production to the level of 26 million tonnes in future.
IOC is the largest manufacturer of iron ore pellets in Canada. IOC owns and operates a mine, concentrator and a pelletizing plant, loading port facilities and a railroad that links the mine to the port, and its customer base comprises North American, European and Asian steel producers. Its shareholders are the international mining group Rio Tinto (58.72%), Mitsubishi Corporation (26.18%) and Labrador Iron Ore Royalty Corporation (15.10%).
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