Iron Ore Quebec wants to double its production
 
A little more than a year after the relaunch of the Bloom Lake mine, near Fermont, Iron Ore Quebec already has an expansion project. The company, a subsidiary of Champion Iron Mines, bought the iron mine in 2016 from American giant Cliffs Natural Resources, which had never managed to make it profitable. It will be possible to visit the facilities during the Objectif Nord business mission of Les Affaires, which will take place from September 23 to 26. Interview with David Cataford, President and CEO of Iron Ore Quebec.

When will you make your decision to go ahead with your project to double production?

David Cataford: The feasibility study to increase annual production to 15 million tonnes will be finalized this summer. If the result is positive and we have the approval of our board of directors, the work could begin this year. And we could produce our first tons of iron concentrate in 2021.

Do you have an idea of the investments needed?

D.C .: It requires major investments in the mine and infrastructure of the Railway and Port Corporation of Pointe-Noire, Sept-les. New wagons and equipment are needed to transport the ore to the plant. We must also complete the second plant that Cliffs started to build. The building is there, but we must get the production equipment including a recovery circuit. We must also invest in powering the plant with electricity. At Pointe-Noire, a new storage area must be built, equipment purchased. We are talking about hundreds of millions of dollars, but we do not have a specific amount.

 

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What is the main challenge that you anticipate?

D.C .: Even if it's okay right now, keep in mind that the mining industry is cyclical. We must therefore ensure that we keep our cost structure as low as possible. Investments should also be avoided in a context where the price of iron could fall below our break-even point of US $ 50 per tonne delivered in China. Over the past year, the price of our iron has fluctuated between US $ 80 and US $ 95 per ton, less the transportation costs that have ranged from US $ 20 to US $ 30. But everything can change quickly.

How was the first year of the revival of the mine?

D.C .: We are very excited! The mine restarted on February 16, 2018. For the first year, our production reached 7 million tonnes of iron concentrate. Before the closure of the mine in 2014, the best year was 5.9 million tonnes. The results are beyond our expectations, especially since it was also the beginning of activities at the Sept-les wharf and the Pointe-Noire Railway and Port Corporation.

Has the workforce been an issue and what will your hiring strategy be if your expansion happens?

D.C .: Hiring in the mining industry is very difficult. But the fact that our mine had already been in operation was an advantage. About half of the 450 people hired had previously worked at the mine. If the expansion is done, we will need 300 new employees. One strategy will be to hire people with little or no experience in mining or big industry and train them ourselves. We are already developing training materials.

You will welcome the mission delegation Objectif Nord. Why ?

D.C .: We are really looking forward to seeing our facilities. We want to make ourselves known to business people. We also want them to see how environmentally responsible we are. The other interesting aspect is making contact with service providers, equipment or solutions. By coming here, they will be able to better understand our needs.