Anglesey Mining’s Canadian iron ore subsidiary has signed a contract for the transport of ores from its mining operations in Quebec and western Labrador.

Labrador Iron Mines Holdings, a 41% owned associate of Anglesey Mining, has entered into the life of mine contract with Quebec North Shore and Labrador Railway Company a subsidiary of the Iron Ore Company of Canada.

The contract provides that QNS&L will carry LIM’s iron ore from Emeril Junction, Newfoundland and Labrador, to Sept-Iles Junction, Quebec, on the QNS& L Railway.

The Port of Sept-Iles is the largest iron ore export port in Canada and in 2010 about 30 million tonnes of iron ore were shipped to customers all over the world.

LIM has agreed to make advance payments to QNS&L to secure the locomotives and infrastructure capacity to meet LIM’s service needs under the contract. LIM will advance USD 5 million to QNS&L upon commencement of the contract, with a further USD 5 million advance payable in October 2011 and a final advance payment of USD 15 million in June 2012.

These advance payments will be repaid by QNS&L to LIM by means of a special credit of USD 3.50 per tonne against all tonnes hauled, commencing July 2012, until all advance payments have been repaid in full.

(Sourced from Walesonline.co.uk)