10 September 2010 Anglesey Mining plc LSE:AYM
LIM signs Impact Benefits Agreement with Naskapi Nation
Anglesey Mining plc's 41% owned associate Labrador Iron Mines (TSX:LIM) has
reported that it and the Naskapi Nation of Kawawachikamach (near Schefferville)
Quebec have entered into an Impact Benefits Agreement ("IBA") with respect to
the development and operation of LIM's Schefferville Iron Ore Project in
Western Labrador.
Under the IBA Agreement, Labrador Iron Mines has committed to the development
of the Project in an environmentally and socially responsible manner, and to
address and mitigate any environmental, cultural, economic and spiritual
concerns of the Naskapi Nation. LIM has undertaken to make best efforts to
employ Naskapi members in the Project workforce and to engage Naskapi
aboriginal businesses for Project contracts. LIM will also provide some support
for education, training and social programs and provide opportunities for the
Naskapi to participate in the economic development of the Project.
For its part, the Naskapi Nation has agreed to respect the rights, licenses and
permits that have been granted to LIM, to provide LIM with continuing access to
its properties and not to engage in any action that is obstructive to the
Project. The Naskapi have also agreed to make reasonable efforts to enter into
co-operation agreements and/or working relationships with other First Nations
with whom LIM may enter into other IBA agreements.
"We are extremely pleased that LIM has today signed an IBA with the Naskapi
which formalizes a mutually beneficial relationship based on respect and
trust," said John Kearney Chairman and Chief Executive. By entering into the
IBA, the Naskapi have confirmed and demonstrated their support for the Project.
"We are also continuing our IBA negotiations with the Quebec Innu communities
and we look forward to establishing co-operative and mutually beneficial
relationships with all our First Nation partners to ensure the long term
success of the Project for the mutual benefit of all stakeholders" added Mr.
Kearney.
The Naskapi IBA, which will be in effect throughout the Project's mine life,
represents the culmination of a long period of cooperation since the initial
MOU was signed between the parties in April 2008. Since that time, LIM has been
working cooperatively with the Naskapi people, employing members of the
community and awarding various business contracts.
Construction Underway
Following the recent agreements with the Quebec Innu to remove barriers (see
LIM press release of 3 September 2010), LIM has already commenced ground
clearing of the mine site in parallel with contractor mobilization, which will
be followed by civil construction and mechanical erection of the beneficiation
plant and accommodation camp this autumn.
Over the last several weeks a significant portion of the infrastructure and
plant has been transported by rail from a railhead near Labrador City to
Schefferville via the TSH aboriginal railroad, jointly owned by the Naskapi
Nation and two Quebec Innu communities. Construction of the plant and the
initiation of mining activities, prior to the onset of mid-winter, will enable
commercial production of iron ore to commence in the spring of 2011.
About the Naskapi Nation
The Naskapi Nation of Kawawachikamach is a First Nation based in
Kawawachikamach, Québec, located approximately 16 kms northeast of
Schefferville, recognized under the Cree-Naskapi (of Quebec) Act 1984.
About Labrador Iron Mines Holdings Limited (LIM)
LIM's Schefferville Area project involves the development of twenty direct
shipping iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, Quebec. LIM's properties are part of the historic Schefferville
area iron ore district where mining of adjacent deposits was previously carried
out by the Iron Ore Company of Canada from 1954 to 1982. Labrador Iron Mines
contemplates mining in four stages, the first phase of Stage 1 comprising the
James and Redmond deposits, which are located in close proximity to existing
infrastructure and for which construction permits have been issued.
Anglesey Mining plc
Anglesey Mining with its LSE main board listing is primarily focused on its
41% interest in LIM. In addition to any new projects that may be brought forward
the company owns 100% of Parys Mountain in North Wales with an historical resource
in excess of 7 million tonnes at over 9% combined copper, lead and zinc.
For further information, please view LIM's website at
www.labradorironmines.ca or contact:
Bill Hooley, Chief Executive +44 (0) 1492 541981
Ian Cuthbertson, Finance Director +44 (0) 1248 361333
Emily Fenton/Charlie Geller, Conduit PR +44 (0) 20 7429 6608 / +44 (0) 7788 554035