Work will commence immediately to expand IOC’s mining and processing facilities in Labrador West and increase transportation capacity on its 418-km railway to its port facilities in Sept-Îles, Québec. The investment includes the purchase of new mining equipment as well as installation of a new crusher station in the mine and autogenous grinding mill in the concentrator and a 6-km overland conveyor to link them together. New locomotives and rail cars will be purchased to increase railway capacity.

The remainder of the expansion program is currently in feasibility studies and a decision will be made later this year on plans to increase annual concentrate production further to more than 25 million tons, including an increase in pellet production to 14.5 million tons. IOC Chairman and Rio Tinto Iron Ore Chief Executive Sam Walsh said the decision highlighted not only the value of Rio Tinto’s global platform of iron ore production, but also the level of confidence in market conditions over the longer term. “The iron ore market is as tight as it has ever been and our sustained and substantial reinvestment in our operations in Canada and worldwide demonstrates the confidence we have in that market. The IOC expansion program emphasizes the Group’s ability to increase supply from an existing strong base on several continents,” Walsh said.

“This investment secures the longterm future of our operations and improves the livelihoods of those around us,” said Terence F. Bowles, president and CEO, IOC. “IOC has been the main driver of the Labrador West economy for more than 50 years, and this expansion program ensures that a new generation of families in the region can be confident that there will be rewarding careers for years to come. This major expansion reflects the current strong market conditions as well as the confidence of our shareholders in our ability to deliver.” The investment is one of many being made in Canada by IOC’s major shareholder and operator, Rio Tinto, which has activities in more than 40 countries worldwide. This includes mining developments and acquisitions in British Columbia, Northwest Territories and Quebec.

IOC said its commitment to sustainable development is reflected in its expansion program. The company is working closely with local community stakeholders in Labrador City and Sept-Îles to optimize economic and social impacts and to protect the natural environment. The company said consultations are under way to ensure that expansion proceeds in the best interests of the communities and IOC.