Canadian miner Champion Iron is considering a significant expansion of its production capacity at the Bloom Lake mine, in Quebec.
CEO David Cataford says Champion’s technical team is assessing the investments necessary to structurally increase production beyond the current 15-million-tonne-a-year mark.
Bloom Lake, which reached Phase 2 commercial production in December 2022, operated at nameplate capacity for 30 consecutive days during the first quarter of the 2024 financial year, indicating robust operational performance.
However, Champion says challenges have emerged during the subsequent quarters, prompting the company to undertake a comprehensive analysis. The company pushed the facilities beyond their nameplate capacity to identify operational bottlenecks.
While this initiative confirmed Bloom Lake’s capability to produce above the 15-million-tonne-a-year threshold, it also highlighted the need for further investments to sustainably increase production.
During the three-month period ended March 31, 16-million tonnes of material were mined and hauled, compared with 14.2-million tonnes during the same period in 2023, an increase of 12%. This increase is attributable to the contribution of additional equipment, a higher utilisation and availability of mining equipment, and reduced trucking cycle time associated with the construction of additional ramp accesses.
Meanwhile, Champion reports that logistical hurdles continue to persist, impacting shipments and resulting in a significant build-up of iron-ore concentrate stockpiles at Bloom Lake.
At March 31, the stockpile stood at 2.7-million wet metric tonnes, reflecting a 0.2-million wet metric tonne increase since December 2023.
“As we solidify operations, we continue to seek improvements from the rail operator to ensure that haulage services keep pace with our production rate as we continue to exercise our leadership in the green steel supply chain,” says Cataford.