NEW YORK Canadian iron ore development company New Millennium Iron Corp. posted a net loss of $2.2 million in the fourth quarter of 2012, a sharp reversal from net income of $28.6 million in the same period a year earlier.
The Calgary, Alberta-based company also posted a net loss of $9.1 million for the full year vs. net income of $21.1 million in 2011.
New Millennium said it is still forging ahead with three major iron ore projects. Two of the projects are being developed with Indias Tata Steel Ltd., New Millenniums strategic partner, which also holds 26.3 percent of its shares.
The company has started the initial strip mining, crushing and screening of saleable ore at its direct-shipping ore project (DSO) in Schefferville, Quebec, which contains 64.1 million tonnes of proven and probable mineral reserves. The DSO project is being developed as part of a joint venture with Tata Steel Minerals Canada Ltd., in which New Millennium owns 20 percent.
The project is being operated by Tata Steel Minerals Canada, which is arranging financing for as much as 80 percent of the project; such costs could reach $300 million.
New Millennium also is in the process of designing and engineering a pellet plant in collaboration with Finland-based Outotech Oyj for its taconite project, which includes its LabMag deposit in Newfoundland and Labrador and its KeMag deposit in Quebec.
The company is seeking additional strategic partnerships for its third iron ore project, in the Millennium Iron Range in Newfoundland and Labrador. It said it continues to focus on exploration drilling at its Perault Lake, Sheps Lake, Howells Lake and KeMag East properties.
A version of this article was first published by AMM sister publication Steel First.