LABRADOR and QUEBEC Strong prices and a positive market outlook have IRON ORE COMPANY OF CANADA partners planning to spend another $300 million toward expansion. IOC is owned 59% by RIO TINTO, 26% by MITSUBISHI and 15% by the LABRADOR IRON ORE ROYALTY INCOME FUND. The budget commitments are pro-rated on that basis.
Earlier this year IOC announced that $500 million would be spent to expand annual capacity to 22 million tonnes of concentrates and 14.5 million tonnes of pellets. The $300 million will cover phase 2 of the program to boost output to 26 million tonnes of concentrate and 14.5 million tonnes of pellets in 2011. The figures are a 50% increase over 2006 capacity.
Magnetite recovery is to be increased by installing a new ball mill, services and equipment in a new building. As well floatation capacity will be added to the pellet plant, a new control system installed for pellet feed grinding, and new pellet screening technology will be introduced. A new 46-kV electrical substation will also be built.
IOC is Canada's largest iron ore producer. Visit the company's website at www.IronOre.ca.
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