Iron miners, Quebec govt ink MoU to develop Pointe-Noire multi-user port

VANCOUVER (miningweekly.com) – The Quebec government, together with Tata Steel Minerals Canada and Quebec Iron Ore (QIO), a subsidiary of Champion Iron, have signed a memorandum of understanding (MoU) to collaborate on the development and management of industrial facilities at Pointe Noire, in Sept-Îles, Quebec.

The parties have formed a limited partnership Société Ferroviaire et Portuaire de Pointe-Noire (SFPPN), through which they will develop an innovative business model that meets the needs of the private sector, while also promoting maximum benefits for future projects in the region.

Quebec Energy and Natural Resources Minister Pierre Arcand, who is also responsible for the province’s ‘Plan Nord’ – an infrastructure development framework for the underdeveloped far north of the province – and responsible for the Côte-Nord region, made the announcement to confirm the MoU at a press conference at the Pointe-Noire site on Monday.

"The Pointe-Noire site has already demonstrated its potential, just as we can see encouraging signs of a recovery in the iron-ore sector. We are at the right place at the right time, and our plan is working: Quebec is clearly in the forefront of the jurisdictions most likely to attract investors,” Arcand said.

The MoU is the first step towards the development and enhancement of this strategic infrastructure. Launched in 2016, the SFPPN’s assets include rail lines, access to port facilities, rail yards, a pellet plant, administrative offices and other facilities, on a site of around 1 200 ha.

While the two mining companies will make their expertise available to help manage operations at Pointe Noire, the provincial government has undertaken to continue its active involvement to maintain and assure a multi-user approach and increase benefits for current and future projects in the area covered by the Plan Nord.

All three parties agree that they will endeavour to ensure that the Pointe-Noire infrastructure is developed to match anticipated needs while continuing to provide services at the lowest possible cost for all potential users. A phased capacity enhancement plan will be drawn up. The first action from this plan will be to build a conveyor to connect to the multi-user dock in the Port of Sept-Îles.

"The strategic infrastructure at the Pointe-Noire site will play a key role in QIO's plans to restart the Bloom Lake mine, located near Fermont. The partnership, formalised by the agreement, will enable QIO to deliver the prospect of economic growth and employment for the region with strong upside potential for shareholders and other stakeholders,” QIO chairperson and CEO Michael O'Keeffe stated.

The company recently completed a feasibility study for Bloom Lake, which concluded that it is viable to restart iron-ore mining and that the operation will be “competitive in global iron-ore markets”.

QIQ acquired Bloom Lake from affiliates of Cliff Natural Resources a year ago.