Canadian Ore Producer Set to Begin Work on New Mine
02/23/2017 - Rio Tinto’s Iron Ore Company of Canada will invest CA$79 million to open a new open-pit mine in the province of Newfoundland and Labrador.
Dubbed the Wabush 3 project, the mine will be a part of the company’s Carol Project, which has been producing iron ore concentrate and pellets from facilities in Labrador City since the 1960s. The ore is shipped by rail to the port of Sept-Îles on the Gulf of St. Lawrence, and from there, it is sent to customers around the world.
In a statement, the company said Wabush 3 will extend the life of the Carol Project, reduce operating costs and increase production of quality iron concentrates and pellets.
“The Wabush 3 pit is IOC's best option to access low-cost, quality ore and provides a compelling opportunity to make our business more competitive by reducing operating costs during a period of increasing iron ore price volatility,” said IOC chief executive officer and president Clayton Walker.
The Wabush 3 pit will be sunk next to Luce pit, one of the company’s four active open-pit mines. Construction is expected to begin this spring, and the mine is expected to yield its first production tons in the second half of 2018. With the new mine, IOC’s capacity is expected rise nearly 28 percent to close to 23 million metric tons annually.
Rio Tinto holds a 59% stake in the business; Mitsubishi Corp. owns 26% share.
In a statement, the company said Wabush 3 will extend the life of the Carol Project, reduce operating costs and increase production of quality iron concentrates and pellets.
“The Wabush 3 pit is IOC's best option to access low-cost, quality ore and provides a compelling opportunity to make our business more competitive by reducing operating costs during a period of increasing iron ore price volatility,” said IOC chief executive officer and president Clayton Walker.
The Wabush 3 pit will be sunk next to Luce pit, one of the company’s four active open-pit mines. Construction is expected to begin this spring, and the mine is expected to yield its first production tons in the second half of 2018. With the new mine, IOC’s capacity is expected rise nearly 28 percent to close to 23 million metric tons annually.
Rio Tinto holds a 59% stake in the business; Mitsubishi Corp. owns 26% share.
