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Labrador Iron Ore Royalty Income Fund - IOC Announces Cessation of efforts to develop Sept-Iles pelletizing plant
TORONTO, Feb. 27 /CNW/ - Labrador Iron Ore Royalty Income Fund (the "Fund") attaches a press rele...
About this update from Labrador Iron Ore Royalty Corporation
[{"type":"text","content":"\n\n\n\nTORONTO, Feb. 27 /CNW/ - Labrador Iron Ore Royalty Income Fund (the\n"Fund") attaches a press release issued today by Iron Ore Company of Canada\n("IOC") announcing that due to the sharp drop in world demand for raw\nmaterials, including iron ore, IOC found the refurbishment of its Sept-Iles\npellet plant (which has been idle since 1981 and was partially refurbished in\n2001) to no longer be viable and decided not to proceed with the project. The\ntrustees of the Fund support this decision as it will allow IOC to concentrate\nits efforts on its current operations. The impact of this write down has been\nreflected in the Fund's financial statements for the year ended December 31,\n2008.\n\n\nPress Release\n-------------------------------------------------------------------------\nIron Ore Company of Canada\n\n\nIOC ceases efforts to develop Sept-Iles pelletizing plant\n\n\nMontreal, Sept-Iles, Labrador City - February 27, 2009 - Iron Ore Company\nof Canada (IOC) announces that, following a decision by its Board of\nDirectors, it has ceased efforts to develop the Sept-Iles pelletizing plant.\n\n\n"The decision has become necessary in the context of the global economic\nrecession," said Terence Bowles, President and CEO, IOC. "We are experiencing\nan unprecedented drop in world demand for raw materials, including steel and\niron ore. As a result, the Sept-Iles pelletizing plant restart project is no\nlonger viable and we have decided not to proceed with it and concentrate on\ninitiatives that can add more value."\n\n\nOpened in 1973, the Sept-Iles pelletizing plant has been idle since 1981.\nIt was partially refurbished during 2000-2001. The current decision will\ntherefore have no impact on the number of IOC employees.\n\n\nThe pellet plant buildings will be kept intact for the foreseeable\nfuture, as they house important utilities that service IOC rail and port\nfacilities. The dismantling and removal of processing equipment will commence\nshortly.\n\n\nIOC is the largest manufacturer of iron ore pellets in Canada and its\ncustomer base covers North American, European, and Asian steel producers. The\nCompany operates a mine, concentrator and pelletizing plant in Labrador City,\nNewfoundland and Labrador, as well as port facilities located in Sept-Iles,\nQuebec. It also operates a 41...