Iron Ore Company of Canada Settles Prices with ThyssenKrupp
05/02/2008 - The Iron Ore Company of Canada reaches agreement with ThyssenKrupp Steel AG on prices for IOC Carol Lake iron pellets and concentrates for 2008.
The Iron Ore Company of Canada (IOC) has reached agreement with ThyssenKrupp Steel AG on prices for IOC Carol Lake iron pellets and concentrates for 2008.
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Prices in US cents per natural tonne unit
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2007
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2008
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% Change
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Pellets
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122.58
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228.82
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+86.67%
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Concentrate
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86.40
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145.80
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+68.75%
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As a result, the price of Carol Lake Acid Limestone iron ore pellets will increase by 86.67% to US cents 228.82 per natural tonne unit. Carol Lake iron ore concentrate prices will increase by 68.75% to US cents 145.80 per natural metric tonne unit.
Labrador Iron Ore Royalty Income Fund, through its wholly owned subsidiaries, holds a 15.1% equity interest in IOC and receives a 7% gross overriding royalty and a 10 cents per tonne commission on all iron ore products produced, sold and shipped by IOC.
The increased pricing will substantially increase the Fund's royalty revenue and should result in a substantial increase in the Fund's share of IOC's earnings.
The Iron Ore Company of Canada (IOC) is the largest manufacturer of iron ore pellets in Canada; its customer base covers North American, European, Middle Eastern and Asian steel producers. The company operates a mine, concentrator, and a pelletizing plant in Labrador City, Newfoundland and Labrador, as well as port facilities located in Sept-Iles (Que.). It also operates a 418-kilometer railroad that links the mine to the port. IOC has approximately 1900 employees.
