GREY:CPMNF - Post by User
Post by
greenandgoldon Sep 14, 2011 12:18pm
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Post# 19041341
Railway
RailwaySo Champion needs at least 62 km of rail to connect to the Bloom Lake railway (and possibly more if it needs to connect to the QNSL directly). If we consider Consolidated Thompson's costs for the Bloom Lake railway that's going to cost about $5 million per km, or $310 million. A hefty sum, so CHM's options seem to be:
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1) Pay for the rail. Since the rail will cross from Quebec into Labrador, it too will be considered a "common carrier," therefore other aspiring Fermont iron ore producers, like Cliffs, will piggyback onto the line eventually.
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2) Wait for Cliffs to build the rail link to Bloom Lake railway to connect Lamalee. Then piggyback onto their line.
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3) Wait to be bought out be Arcelor Mittal, which makes the most sense because their private rail goes right by CHM's property. Zero rail construction costs.