Quebec, Champion Iron and Adriana to study Labrador Trough rail feasibility

Written by Jenifer Nunez, assistant editor

The Québec government and Lac Otelnuk Mining Ltd., a joint venture between Adriana Resources and WISCO International Resources Development & Investment Limited, have formed a partnership with Champion Iron Limited, the Northern Quebec Railway Partnership (SFNQ), to study Labrador Trough rail feasibility.

 

The Québec government has set aside a maximum of CA$20 million (US$18 million) from its Plan Nord Fund to contribute to the study. For its part, Champion’s contribution of sunk costs is valued up to CA$6 million (US$5 million). Among other major economic and wide-reaching social benefits, the new rail infrastructure when developed will enhance the Québec-based mining industry’s ability to service world markets with competitive long-term tariffs.

Champion’s Chairman and Chief Executive Officer Michael O’Keeffe said, “The SFNQ partnership includes the government of Québec and fellow mining group Lac Otelnuk Mining Ltd, with an open invitation to others from within industry to join this important initiative.”

SFNQ will oversee work contributing to the feasibility study for the development of a multi-user rail line from the port of Sept-Îles to the Labrador Trough.

“A range of partners will ensure the study considers the concerns of all potential rail link users and in doing so advocates a multi-user system favoring a final outcome encouraging joint investment. Champion is pleased to be a part of the SFNQ partnership,” O’Keeffe said.

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