Labrador Iron Mines Holdings Ltd. (TSX:T.LIM, Stock Forum) said it will be collaborating with the Canadian National Railway Company (TSX:T.CNR, Stock Forum) and La Caisse de dépôt et placement du Québec on a feasibility study to develop a continuous multi-user rail line from the northern Labrador Trough to the Port of Sept-Îles.
According to the press release, to advance the project timeline, CN has coordinated the timely start of upfront applications for regulatory approvals and permitting requirements for the project. This will also allow for appropriate consultation with First Nations, local communities and other stakeholders.
"The development of a new railway in the Labrador Trough is of great interest to LIM as it would provide optionality for long-term rail capacity, with the potential to provide greater efficiencies and optimization of rail access,” said Rod Cooper, President and Chief Operating Officer.
LIM’s wholly-owned James Mine, located in Schefferville, will benefit from the rail and port development in the future. The company recorded the sale of 400,000 tonnes of iron ore in its first start-up season, beginning June 2011, in the next season the company is aiming for two million tonnes.
Other companies collaborating with CN on the project include Cliffs Natural Resources Inc. (NYSE:CLF, Stock Forum), New Millennium Iron Corp. (TSX:T.NML, Stock Forum), Cap-Ex Ventures Ltd. (TSX:V.CEV, Stock Forum) and Alderon Iron Ore Corp. (TSX:T.ADV, Stock Forum)
As previously announced on July 18, 2012, LIM has agreed to participate with the Sept-Îles Port Authority in the development of its new multi-user dock facility at Pointe-Noire in the Port of Sept-Îles.
Under the terms of the agreement with the Port Authority, LIM has reserved an annual capacity of 5 million tonnes of iron ore with a right to secure additional residual capacity.
LIM is Canada's newest iron ore producer. We own a portfolio of direct shipping (DSO) iron ore operations and projects located in the prolific Labrador Trough.
On mid-morning Friday, LIM’s stock was up 7% and was trading at $1.97 a share. The company has a market cap of $133 million, based on 67.4 million shares outstanding. The 52-week high and low was $10.52 and $1.73 respectively