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TORONTO (miningweekly.com) - The Iron Ore Company of Canada (IOC) and its largest shareholder Rio Tinto no longer plan to restart the Sept-Iles pelletising plant, in Quebec, after sharp declines in global iron-ore demand.
“The Sept-Iles pelletizing plant restart project is no longer viable and we have decided not to proceed with it and concentrate on initiatives that can add more value,” said IOC president and CEO Terence Bowles.
The plant, which was opened in 1973, has been idle since 1981. It was partially refurbished during 2000 and 2001, but the decision not to restart will not result in job cuts, the company said.
"The decision has become necessary in the context of the global economic recession," Bowles said in a statement.
"We are experiencing an unprecedented drop in world demand for raw materials, including steel and iron ore.”
The pellet plant buildings will be kept intact “for the foreseeable future”, as they house important utilities that service IOC rail and port facilities, but the dismantling and removal of processing equipment get under way soon.
Rio owns 58,7% and operates IOC, while Mitsubishi Corporation holds 26,18%, and the Labrador Iron Ore Royalty Income Fund has 15,1%.
The firm is the largest manufacturer of iron ore pellets in Canada.
