NEW YORK Canadas Labrador Iron Mines Holdings Ltd.
(LIM) and Tata Steel Minerals Canada Ltd. (TSMC) have entered a
strategic relationship to develop iron ore operations in the
Labrador Trough in Canada.
This will include joint development of LIMs Howse deposit
and TSMCs Timmins 4 deposit, as well as cooperation
agreements in logistics, property rationalization, and
ancillary support and offtake arrangements.
LIM will sell to Tata Steel Minerals Canada a 51-percent stake
in Howse, which has a resource of 28 million tonnes and is
expected to be developed in 2020.
Significant savings can be achieved by processing Howse ore
through TSMCs Timmins-area plant, which is opposite the
LIM will also receive a cash injection of Canadian $30 million
($29.2 million), and could acquire as much as 100 percent of
the Timmins 4 deposit.
TSMC will have an option to inject as much as C$25 million
($24.4 million) into the Howse project to increase its interest
to 70 percent.
A version of this article was first published by AMM sister
publication Steel First.