Champion Iron forms partnership to manage rail line feasibility study

Champion Iron Ltd.'s board has forged a partnership with the government of Quebec and Lac Otelnuk Mining Ltd. to manage the implementation of a feasibility study for a new Labrador Trough iron-ore rail line.

The Quebec government has set aside a maximum of $20 million in its 2014-15 budget to contribute to the study, while Champion would provide $6 million. The new rail infrastructure would enhance the Quebec-based mining industry's ability to serve world markets with competitive long-term tariffs, Champion officials said in a press release.

The partners will oversee work contributing to the feasibility study for the development of a multi-user rail system from the Port of Sept-Iles to the Labrador Trough, which hosts one of the world’s largest iron-ore accumulations.

"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 officials said.

The prospective development of any rail infrastructure would involve all aspects of the local community, not just the mining industry, and require the support of the First Nations and key stakeholders, they said.