New Millennium Iron Corp announced the signing of an agreement with the Sept-Îles Port Authority providing NML with access to a minimum of 15 million metric tonnes of annual shipping capacity from the new multi user deep water dock facility to be located in the Bay of Sept-Îles at Pointe Noire. The Sept-Îles harbour is an ideal location for year round shipping in large ore carriers.

The facility in Phase I is designed to have a total capacity of 50 million metric tons annually and is expected to cost USD 220 million. It is being financed by the Port of Sept-Îles, the Government of Canada and commitments from potential end-users. Construction is expected to be completed by the end of March 2014.

NML will invest USD 38.4 million for its interest, payable in two instalments over a one year period, the first of which was paid at time of signing. NML's investment is from available funds. As a result of this investment, NML will receive favourable shipping rates at the dock facility. NML has a take or pay obligation based on a discounted rate applied on 50% of the reserved capacity. NML is entitled under the agreement to transfer all or a portion of its annual capacity and the associated take or pay obligation to other users of the dock. The term of the contract is 20 years, with NML having the option to renew for four further five year terms.

Mr Dean Journeaux president and CEO of NML said that "This investment is a major step in assuring access to world markets in Europe, Asia and elsewhere through a world class shiploading system capable of handling the latest generation of large-size vessels. We are pleased to be part of this exciting new development for the Port of Sept-Îles providing for the development of our large taconite resources."

Source - New Millennium Iron

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