Nippon Steel, Sojitz to take 49% stake in Champion Iron’s project in Canada
The Kami project will also receive up to A$490 million in contributions from Nippon and Sojitz.
Canadian rail company CN is suspending a feasibility study for the construction of its proposed rail line and terminal handling facility to serve an iron ore range running through Quebec and Labrador due to current market conditions and divergent interests of the mines that would be served by the rail line.
A feasibility study was initiated last August by CN and its partner La Caisse de dépôt et placement du Québec along with a group of six mining companies.
According to CN’s news release, the mine construction schedules and diverging needs for each specific individual project makes it difficult to obtain the critical volumes of iron ore necessary to support the building of new rail and terminal infrastructure.
“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, executive vice-president and chief financial officer of CN.
Michael Sabia, President and Chief Executive Officer of the Caisse, added that “we understand that conditions in the global economy prevent undertaking the project at this time.”
Last month Baffinland Iron Mines scaled back its $4-billion rail and port program also due to market conditions.
Creative commons image courtesy of striatic. Image of CN building in Edmonton. Image of CN train by Bobolink
