Canada's Labrador Iron Mines Holdings Limited (LIM) announced on Jul 22 that its third shipment of iron ore departed from the Port of Sept-Îles on July 19, 2013. The third shipment was carrying approximately 186,000 wet metric tonnes of iron ore at an average grade of 62% Fe. The fourth vessel is scheduled to arrive at the Port towards the end of July. |
In May 2013, LIM signed a new two-year iron ore sales agreement with the Iron Ore Company of Canada (IOC) for the sale of all of LIM's iron ore production for the next two calendar years 2013 and 2014. IOC has entered into an iron ore off-take agreement with RB Metalloyd Limited under which RBM has agreed to buy LIM's iron ore from IOC on a FOB Sept-Îles basis. Under LIM's new sales agreement, IOC will pay for the iron ore progressively, as the ore is resold, with the price calculation based on the monthly average of the market index, adjusted for product quality specification, premiums or penalties and after ocean freight and IOC's price participation.
LIM is Canada's iron ore producer with a portfolio of direct shipping (DSO) iron ore operations and projects located in the prolific Labrador Trough. Initial production commenced at the James Mine in June 2011, and through 2012, iron ore sales have totaled 2.0 million dry tonnes in 13 shipments into the Chinese spot market. LIM has commenced its third year of operations and is targeting 1.75 to 2.0 million tonnes of saleable iron ore production in 2013. The James Mine is connected by a direct rail link to the Port of Sept-Îles, Québec. The operation also benefits from established infrastructure including the town, airport, hydro power and railway service.