Montreal—CN Rail has entered into an agreement with a handful of mining customers to conduct a feasibility study on the expansion of its Quebec and Labrador operations in the provinces’ iron ore range.
Working with Cliffs Natural Resources Inc., Labrador Iron Mines Holdings Ltd., New Millennium Iron Corp., Cap-Ex Ventures Ltd. and Alderon Iron Ore Corp., CN will conduct a study into a proposed rail line and terminal handling facility to serve the Quebec/Labrador iron ore range.
CN announced it will also work with venture partner La Caisse de dépôt et placement du Québec on the study, which will proceed immediately.
The study will examine the cost and engineering parameters of the proposed rail network and its associated infrastructure.
“CN will work closely with mining companies in the group and the Caisse to determine the best design and right timing for the development of rail infrastructure to tap the significant iron ore production potential of the Labrador Trough in northern Quebec and Labrador,” CN president and CEO Claude Mongeau said in a statement.
To advance the process as quickly as possible, CN said it will coordinate the application to the Canadian Environmental Assessment Agency for required permits for the project.