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LIM Signs Rail Transportation Agreement
LIM Signs Rail Transportation Agreement.
About this update from Anglesey Mining Plc
[{"type":"text","content":"\n \n10 March 2010 LSE:AYM\n\nLIM Signs Rail Transportation Agreement with QNS&L\n\nAnglesey Mining's 41% owned associate Labrador Iron Mines Holdings Limited\n(TSX: LIM) is pleased to announce that it has entered into a life of mine\nConfidential Rail Transportation Contract with Quebec North Shore and Labrador\nRailway Company Inc. (\"QNS&L\"), a wholly owned subsidiary of the Iron Ore\nCompany of Canada, for the transportation of iron ore from LIM's DSO iron ore\nprojects near Schefferville.\n\nThe Contract provides that QNS&L will carry LIM's iron ore from Emeril\nJunction, Newfoundland and Labrador, to Sept-ÈŠles Junction, Quebec, on the QNS&\nL Railway. The QNS&L Railway already carries iron ore for each of the Iron Ore\nCompany of Canada; Wabush Mines and Consolidated Thompson (Cliffs Resources)\nBloom Lake Mine. The Port of Sept-ÈŠles is the largest iron ore export port in\nCanada and in 2010 about 30 million tonnes of iron ore were shipped to\ncustomers all over the world.\n\nThe Confidential Rail Transportation Contract provides for a confidential\ntariff, with various capacity and volume commitments on the part of each of QNS\n&L and LIM. The iron ore will be delivered from LIM's Silver Yards Plant, near\nSchefferville, to Emeril Junction by Tshiuetin Rail Transportation Inc. (\"TSH\")\n(see LIM Press Release dated February 24, 2011).\n\nThe haulage railcars will be provided by LIM and the locomotives supplied and\noperated by QNS&L. LIM has agreed to make advance payments to QNS&L to secure\nthe locomotive equipment and infrastructure capacity to meet LIM's service\nneeds under the Contract. LIM will advance $5 million to QNS&L upon\ncommencement of the Contract, with a further $5 million advance payable in\nOctober 2011 and a final advance payment of $15 million in June 2012 to secure\nthe locomotives required to haul LIM's anticipated increases in production and\nshipment volumes.\n\nThese advance payments will be repaid by QNS&L to LIM by means of a special\ncredit of $3.50 per tonne against all tonnes hauled, commencing July 2012,\nuntil all advance payments have been repaid in full.\n\nJohn Kearney, Chairman and Chief Executive of Labrador Iron Mines Holdings\nLimited said: \"We are very pleased to have signed a life of mine rail\ntransportation contract with QNS&L whi...