New Millennium Iron Provides Update on Direct Shipping Ore Project Progress
01/20/2014 - New Millennium Iron Corp. (NML) provided an update on 2013 operating and construction activities as well as 2014 plans for the direct shipping ore project (DSO) owned by Tata Steel Minerals Canada Limited (TSMC), in which NML has a 20% interest.
TSMC continued with trial production in 2013. Rail haulage of the ore from Schefferville to IOC’s shipping terminal at the Port of Sept-Iles began in July 2013 and continued until mid-November 2013. The project’s first ship with 77,000 tonnes for Tata Steel Europe departed Sept-Iles on 14 September 2013, marking the commencement of commercial sales. A second ship with 166,000 tonnes of cargo departed Sept-Iles on 10 November 2013 bound for China. Rail haulage is expected to resume in May 2014.
Construction progress to date is as follows:
Robert Patzelt, president and CEO of NML, said, “We are pleased that TSMC has joined the ranks of iron ore suppliers with trial shipments and gained experience with its production and logistics chain. NML’s shareholders can expect a more successful year in 2014 as TSMC ramps up the dry crushing and screening operation beginning in May.
“Completion of the rail link to Silver Yards should improve mine-to-port train cycles and facilitate the scheduling of saleable product shipments, as the process plant construction continues and commissioning takes place by year-end.
“This state-of-the-art processing complex, with high iron recoveries, operating year round with product drying facilities is expected to be an efficient operation producing high quality iron ore fines. NML can expect to receive dividends once TSMC meets its financial obligations.”
Plan for 2014
New Millennium Iron Corp. controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world’s largest undeveloped magnetic iron ore deposits. In the same area, the corporation and Tata Steel Limited, one of the largest steel producers in the world, have advanced a direct shipping ore project to the production stage, from which commercial sales will soon begin.
Construction progress to date is as follows:
- Installation of the sizing station for the processing plant is complete.
- Fabric covering of the dome that houses the plant itself is substantially complete.
- Casting of larger foundations and slabs as well as erection of the structural steel inside the dome have been substantially completed, allowing for the start of installation of mechanical equipment.
- Installation of process mechanical equipment has commenced.
- The Timmins yard rail loop and track are complete.
- Rail sections in Newfoundland and Labrador to Silver Yards are nearly complete.
- The construction of the Québec portion of the track (KéRail) is suspended until April 2014. All track materials and crushed ballast are at the site.
Robert Patzelt, president and CEO of NML, said, “We are pleased that TSMC has joined the ranks of iron ore suppliers with trial shipments and gained experience with its production and logistics chain. NML’s shareholders can expect a more successful year in 2014 as TSMC ramps up the dry crushing and screening operation beginning in May.
“Completion of the rail link to Silver Yards should improve mine-to-port train cycles and facilitate the scheduling of saleable product shipments, as the process plant construction continues and commissioning takes place by year-end.
“This state-of-the-art processing complex, with high iron recoveries, operating year round with product drying facilities is expected to be an efficient operation producing high quality iron ore fines. NML can expect to receive dividends once TSMC meets its financial obligations.”
Plan for 2014
- TSMC is planning to continue trial production by crushing and screening products in 2014, and to install a dryer to reduce product moisture as required to meet shipping regulations.
- Link to TSH Railway, including the KéRail portion, is expected to be operational by June 2014.
- Construction of the processing plant and the product load out, storage and train loading system will be a focus in summer and fall of 2014.
- The processing plant is scheduled to be completed in Q4 2014 with commissioning by year-end.
- TSMC is currently reviewing the cost of completion for the project. The development plan of the Howse joint venture is also being evaluated.
- TSMC plans to export its ore through the new multi-user dock in Sept-Iles in the long term. In the interim, TSMC has contracted with Iron Ore Company of Canada for train-unloading, product storage, ship loading and marketing through its established network.
New Millennium Iron Corp. controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world’s largest undeveloped magnetic iron ore deposits. In the same area, the corporation and Tata Steel Limited, one of the largest steel producers in the world, have advanced a direct shipping ore project to the production stage, from which commercial sales will soon begin.
