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File photo of a Labrador Iron Ore operation. (Handout)
File photo of a Labrador Iron Ore operation. (Handout)

Labrador Iron to get $30-million cash in pact with Tata Steel Add to ...

Labrador Iron Mines Holdings Ltd. and a subsidiary of India’s Tata Steel Ltd. have reached a strategic co-operation pact on operations near the Quebec-Labrador border.

Labrador Iron has agreed to sell a 51-per– cent stake in its Howse iron deposit to Tata Steel Minerals Canada for $30-million cash and the right to acquire an ore deposit from TSMC.

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Tata Steel will have the option to raise its share of the Howse deposit to 70 per cent by paying an additional $25-million to LIM.

The agreement also calls for the companies to share a rail line and other equipment to carry ore from the Labrador-Quebec border area to the port of Sept-Iles, Que.

The companies will formalize arrangements to develop a rebuilt rail line that passes from TSMC’s new processing plant for the Timmins deposit through the Silver Yards facilities owned by Labrador Iron.

The will also co-operate on work force camps, rail rolling stock and repair shops and infrastructure at the Port of Sept-Iles.

Tata Steel, part of one of India’s largest industrial groups, has already been co-operating with another Canadian mining company working in the Labrador Trough, which has major iron deposits.

Tata Steel owns 26 per cent of Calgary-headquartered New Millennium Iron Corp. (TSX:NML) which, in turn, owns 20 per cent of Tata Steel Minerals Canada Ltd.

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