The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.
Canadian National Railway Co. is taking a step toward building a potentially lucrative new transportation link for iron ore producers at the Quebec-Labrador border by proceeding with a feasibility study.
The country’s largest railway said Friday that it is working with several mining companies and the Caisse de dépôt et placement du Québec on a study into the rail line and terminal handling facility, which analysts estimated could cost $5-billion.
The mining participants are Labrador Iron Mines Holdings Ltd., Cliffs Natural Resources Inc., a big multinational iron ore producer, as well as Canadian public mining companies New Millennium Iron and Alderon Iron Ore Corp.
CN said it will co-ordinate an application to the Canadian Environmental Assessment Agency, clearing the way for discussions with affected parties including First Nations.
“CN will work closely with mining companies in the group and the Caisse to determine the best design and right timing for the development of rail infrastructure to tap the significant iron ore production potential of the Labrador Trough in northern Quebec and Labrador,” said Claude Mongeau, president and chief executive officer of the Montreal-based railway company.
Rod Cooper, Labrador Iron Mines’ president and chief operating officer, said in a separate statement that a new terminal handling facility at the Port of Sept-Iles would complement plans for a new dock at the port.
“We are excited to move ahead with these developments, as they represent important steps to enhance long-term rail and port access for LIM’s iron ore,” Mr. Cooper said.
The Quebec government’s Plan Nord envisages CN and the Caisse developing a new 800-kilometre line from the port of Sept-Iles to the Labrador Mining Trough, a major growing source of iron ore.
For the rest of this article, please go to the Globe and Mail website: https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20120811/TICKERBIGRAILWAYATL