Labrador Iron Mines

Holdings Limited

TSX: LIM

 
 
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Schefferville Area Projects

Stage 1 - James
- Redmond
- Knob Lake
Stage 2 - Houston & Malcolm
Stage 3 - Howse
Stage 4 & 5 - Sawyer Lake
- Astray Lake
- Kivivic No. 1 & 2
 
Location
Geology
Deposit Types
Mineral Resources & Reserve Estimates
Transportation & Infrastructure
Mining & Processing
Iron Ore Products & Markets

Transportation & Infrastructure

Town of Schefferville

The town of Schefferville, Quebec is located approximately 2 km from the Labrador border on the north shore of Knob Lake. The town was established by the Iron Ore Company of Canada (IOC) in 1954 to support mining operations in the area. LIM has benefited from existing and extensive infrastructure, the majority of which are in sound operational condition, which has provided us with a strong competitive advantage and low risk start-up. This also reduces the impact on both the physical and social environments as erection of new buildings and facilities are kept to a minimum.

The town of Schefferville (current population 900) provides key existing infrastructure including:
  • a 565 km direct rail link to the Port of Sept-Iles
  • access roads
  • power and water supply
  • buildings and sewage facilities
  • an airstrip, which has daily flights from Montreal, Quebec City and Sept-Iles.



Rail

Town of Schefferville
The only means to transport iron ore from the Schefferville area to the Port of Sept-Iles is by railway. Currently, LIM is transporting its iron ore product on an existing 565 km railway between Schefferville and Sept-Iles. Comprising of two sections, this railway was originally constructed by IOC for its shipment of iron ore and has been in continuous operation for 50 years.

On the northern section of the railway from Schefferville to Emeril Junction (approximately 205 km), LIM's iron ore is transported via the Company's six km spur line, which connects to the Tshiuetin Rail Transportation Inc. (TSH) railway. The TSH railway is owned and operated by a consortium of three local Aboriginal First Nations.

The locomotives are provided to LIM and maintained by Western Labrador Rail Services (a division of Genesee and Wyoming Inc.) and are operated on the TSH railway by TSH.

From Emeril Junction, LIM's iron ore is transported by Quebec North Shore and Labrador Railway Company Inc. (QNS&L), a wholly-owned subsidiary of IOC, on the QNS&L Railway (approximately 360 km). The locomotives are supplied and operated by QNS&L.

LIM has life-of-mine rail agreements with both the TSH and QNS&L Railways.

Railway Lines
First Ore Train First Ore Train Leaves the Schefferville area in almost 30 years - June 29, 2011

LIM has established its Centre Ferro maintenance and repair facility in Sept-Iles, which operates on a full-time basis to maintain its fleet of railcars.

Power

During the 2013 operating season, the equipment installation associated with grid power connection at Silver Yards was completed, the power purchase agreement with Nalcor Energy was signed and the system was energized in November. Power supply for the Silver Yards processing facility and Bean Lake mine accommodation camp is being supplied by electric power during the operating season (connected electrical load approximately 4.0 MW), which has been substantially converted from diesel fuel to lower cost electric power. During the winter period, some electric power may be available depending on domestic consumption in the town of Schefferville, which has priority of service.

Infrastructure - Menehek

Port

The Port of Sept-Iles is an international year-round marine harbour situated 650 km down river from Quebec City on the north shore of the Gulf of St. Lawrence on the Atlantic Ocean. Serving the Quebec and Labrador mining industry, it is the most important port for the shipment of iron ore in North America. Each year, approximately 23 million tonnes of merchandise, mainly iron ore, is handled, approximately 80% of which is destined for international markets.

All of LIM's iron ore in 2013 and 2014 is being sold to IOC under a confidential sales agreement. Under this agreement, LIM's iron ore is handled by IOC at its port facilities in Sept-Iles. As such, LIM has no requirement to install and operate such facilities for its own use during the 2013 and 2014 operating seasons.

Infrastructure - Port

Proposed New Multi-user Deep Water Dock: Pointe-Noire

In July 2012, LIM agreed to participate with the Sept-Iles Port Authority in the development of the new multi-user dock at Pointe-Noire in the Port of Sept-Iles and has reserved an annual capacity of 5 million tonnes of iron ore with a right to secure additional residual capacity.

The $220 million project, proposed and sponsored by the Sept-Iles Port Authority, is planning for two berths, dedicated exclusively to iron ore shipments, equipped with two ship loaders as well as two conveyer lines, with an annual capacity of 50 million tonnes per year, which the Port expects to be completed by March 31, 2014.

In February 2012, the Government of Canada announced that it will invest up to $55 million and contribute to the construction of a new multi-user deep water dock at Pointe-Noire in the Port of Sept-Iles dedicated exclusively to iron ore shipments.

Infrastructure - New Port

Evaluating Port Handling Options

The port handling arrangements for the shipment of LIM’s iron ore production for 2015 and future years remain subject to ongoing evaluation and finalization. LIM continues to evaluate different options for the unloading, stockpiling and ship loading of its iron ore products at the Port of Sept-Iles. These include the potential use of the Port’s proposed new multi-user deep water dock and/or other facilities of the Sept-Iles Port Authority.




 

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