New Millennium Iron Corp. (NML) announced that Tata Steel Minerals Canada Ltd (TSMC), a joint venture between Tata Steel and NML, has signed an agreement with the Sept-Îles Port Authority providing TSMC with access to a minimum of 5 million tonnes of annual shipping capacity from the new multi-user deep water dock facility to be located in the Bay of Sept-Îles at Pointe Noire. The Sept-Îles harbour is an ideal location for year round shipping in large ore carriers to Tata Steel’s European plants.

Dean Journeaux, President and CEO of NML, said, "Upon completion of the new dock facility made possible in part by this investment, TSMC’s DSO project will be assured of long term shipping access to Tata Steel Europe’s plants. The new dock will enable TSMC to reduce costs associated with loading of vessels and shipping to Europe. This will make the project a very competitive supplier to the steelplants."

Port Agreement:
The facility in Phase I is designed to have a total capacity of 50 million tonnes annually and is expected to cost $220 million. It is being financed by the Port of Sept-Îles, the Government of Canada and commitments from potential end-users. Construction is expected to be completed by the end of March 2014.

TSMC will invest $12.8 million for its interest, payable in two installments over a one year period, the first of which was paid at time of signing. As a result of this investment, TSMC will receive favorable shipping rates at the dock facility. TSMC has a take or pay obligation based on a discounted rate applied on 50% of the reserved capacity. TSMC is entitled under the agreement to transfer all or a portion of its annual capacity and the associated take or pay obligation to other users of the dock. The term of the contract is 20 years, with TSMC having the option to renew for four further five year terms.