Sunday, March 29th14.9°C
25490
25546

Quebec iron firm says mine railway feasibility study could stimulate investment

MONTREAL - A Quebec iron ore exploration company says the provincial government's financial support to study building a railway link in northern Quebec's Labrador Trough region could stimulate investment and create new jobs.

"At a time of uncertainty in investment markets regarding the outlook for iron ore, this decision will be seen as a defining point in the history of the mining industry in Quebec," said Champion Iron chairman Michael O'Keeffe.

Iron ore prices have slumped to two-year lows, prompting miners to delay projects.

Analyst Jackie Przybylowski of Desjardins Capital Markets doesn't believe there is as much demand for a multi-user rail line as the industry thought in the past couple of years.

"Although a feasibility study is a good start, it certainly doesn't guarantee that a rail line is going to get built," she said.

The Quebec government committed in Wednesday's budget up to $20 million towards a feasibility study on the construction of a railway line connecting the iron ore deposits with the Port of Sept-Iles.

Funding for the study will be conducted with private partners.

The new government said developing the mining potential of the region is a "cornerstone" of its relaunched Northern Quebec economic development plan.

The study will estimate costs and determine the best railway option, including increasing capacity on existing lines and the building a new one.

Canadian National Railway (TSX:CNR) put its own feasibility study on ice more than a year ago due to delays in mining projects because of low iron ore prices.

The country's largest railway had been working with several mining companies and the Caisse de depot pension fund on a study into a transportation line and terminal handling facility, which analysts had estimated could cost $5 billion.

Spokesman Mark Hallman said that while CN's project remains on hold, it is "available to co-operate" with the government.

The Labrador Trough is among the world's largest iron ore deposits, with annual production of some 50 million tonnes.

Global miners including Arcelor Mittal and Rio Tinto have assets in the region.

Follow @RossMarowits on Twitter.

The Canadian Press


Read more Business News

25528


Recent Trending




Today's Market
S&P TSX14812.42-57.38
S&P CDNX681.43+1.87
DJIA17712.66+34.43
Nasdaq4891.22+27.86
S&P 5002061.02+4.87
CDN Dollar0.7931+0.0001
Gold1196.30-8.80
Oil48.87-3.00
Lumber282.60-3.60
Natural Gas2.62-0.05

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.50+0.00
Cantex0.03-0.01
Anavex Life Sciences0.219+0.009
Metalex Ventures0.04-0.01
Russel Metals24.50-0.18
Copper Mountain Mining1.13+0.00
Colorado Resources0.125+0.010
ReliaBrand Inc0.006-0.001
Sunrise Resources Ltd0.045+0.000
Mission Ready Services0.255+0.020
Decisive Dividend Corporation1.80+0.02

 



24393

FEATURED Property
22472002201 & 2202 Mimosa
$244,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...


Stay out of sales limbo!

Have you ever had a series of good meetings with a prospect … gathered all kinds of information … and given what you thought was a great presentation … only to receive a response ...

_








Member of BC Press Council


24697