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Tuesday, February 12, 2013
CN places iron-ore project feasibility study on hold
CN announced today that it's suspending the feasibility study for a proposed rail line and terminal handling facility that would serve the Quebec/Labrador iron ore range in Canada.
The feasibility study was initiated in August 2012 by CN and its partner La Caisse de dépót et placement du Québec, along with a group of six mining companies. The study had been progressing steadily over the past several months, but "current market realities have resulted in anticipated delays with mine development projects in and around the Labrador Trough," CN officials said in a prepared statement.
A joint review of the project with the mining companies indicated that mine construction schedules and diverging needs for each specific individual project would make it difficult to obtain the volumes of iron ore necessary to support the project, they said. A decision by some miners in the region not to join the group of mining companies supporting the project also was a factor.
"We have invested considerable effort and resources towards the feasibility study, but in light of the circumstances, CN has concluded that it is not advisable to continue with the feasibility study at this time," said Luc Jobin, CN's executive vice president and chief financial officer.