NEW YORK Iron ore development company Tata Steel Minerals Canada (TSMC) has signed a deal to sell its iron ore output to Iron Ore Co. of Canada (IOC).
The contract will allow Tata Steel Minerals Canada to start shipping product this year, according to New Millennium Iron Corp., which has a 20-percent stake in TSMC.
The iron ore will be sourced from New Millenniums direct shipping ore (DSO) project in Schefferville, Quebec. "Deliveries should begin in the coming weeks," Andreas Curkovic, head of investor relations at New Millennium, told AMM sister publication Steel First.
"The agreement provides TSMC with a means of stockpiling and shiploading its production, pending completion of the new deep-water, multi-user dock now being built at Sept-Îles, Quebec, in which both TSMC and New Millennium are investors," he said. "At present, only IOC and Cliffs Natural Resources have shiploading capability at Sept-Îles."
Curkovic said the tonnage sold would be subject to mine-to-port haulage rates and actual vessel arrangements.
"The DSO project produced 300,000 tonnes in 2012 and planned production is 1 million to 2 million tonnes in 2013 and 4 million tonnes in 2014," Curkovic said. "The new dock is expected to be in service sometime in 2014, so the IOC-TSMC agreement is a short-term solution."
Canadian iron ore producer Labrador Iron Mines Holdings Ltd. recently entered a strategic relationship with TSMC to develop iron ore operations in the Labrador trough (amm.com, March 12).
A version of this article was first published by AMM sister publication Steel First.