TORONTO (miningweekly.com) - Montreal, Quebec-based Consolidated Thompson Iron Mines has shipped the first iron-ore concentrate from the port of Sept Iles, Quebec, the firm said on Tuesday.

The ore, produced from the company's Bloom Lake mine, is headed for Chinese steel producer Wuhan Iron & Steel (Wisco), which last year invested $240-million in Consolidated Thompson, in exchange for a 19,9% stake in the company and a 25% holding in the Bloom Lake asset.

Wisco also has offtake rights on up to 60% of the iron-ore produced over the life of the Bloom Lake operation, at market prices.

Earlier this year, Consolidated Thompson also announced a one-million-ton a year offtake deal and a $50-million credit agreement with a subsidiary of Korea's SK Group.

The first ship bound for China was loaded with about 165 000 t of high-quality iron-ore concentrate, Consolidated Thompson said.

This shipment was completed through the firm's new port facilities at Pointe Noire in the port of Sept Iles.

"The first boatload of iron-ore concentrate was truly a momentous occasion for the corporation, its management and employees,” said CEO Richard Quesnel.

“Our focus is now on achieving the steady state of production of eight-million tons per year and proceeding expeditiously with the build-out to double the Bloom Lake mine production to 16-million tons".

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