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Champion Iron is moving forward with a $470 million project near Vermont

Champion Iron is moving forward with a $470 million project near Vermont

Champion Iron and its subsidiary Iron Ore Quebec have secured the financing and electricity needed to continue expanding the Bloom Lake mine. The board gave the final green light to the $470 million project being built near Fairmount on the North Shore.

Quebec iron ore has the wind in its sails. This mining company, which relaunched its activities at the Plum Lake mine in 2018, now produces 15 million tons of iron ore annually.

Having exceeded its production targets, the company wants to establish itself as a leading supplier of high-purity ore for green steel manufacturing. With a 25MW power block awarded to it last November and a license just granted by the board, Champion Iron is free to complete a $470 million project in which $60 million has already been invested.

This project, which will create 150 new jobs in 2025, will increase the purity of iron ore from the Plum Lake mine. This production will be for electric arc steelwork. Many Western countries will benefit more from these less polluting technologies following commitments made at COP28.

“We have Canada, the United States, England and Germany who have all committed, when they intend to implement infrastructure projects, to use steel with low carbon intensity,” noted TVA News Champion Iron CEO David Cataford. “We want to be a player in this chain, making the raw materials, transforming them and refining them so that they can then be used to make almost green steel, low-carbon steel.”

The mining company is working on another expansion project called KAMI, which will include investments of about $4 billion. The mine is 25 years old and is capable of producing 9 million tons of additional iron ore annually. Discussions with potential partners are ongoing. CEO David Cataford confirms that Champion Iron is prepared to confront potential disruptions to iron prices.

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“We are doing well, we have a good track record. We have more cash than debt. We are well positioned to weather possible changes in iron prices. If we are talking about an investment of about C$4 billion, from our perspective, we will need to do it with a partner.” “So, we are currently in discussions with other groups,” David Cataford said.

Finally, Champion still wants to relaunch the old Sept-Îles pelletizing plant that stopped these activities in 2013. It will acquire it in 2022. A timetable for the realization of this project can be established after receiving the feasibility study that will be completed over the coming months. .