According to Labrador Iron Mines Holding Ltd, funding for Canadian iron ore projects may be in doubt after prices for the steelmaking raw material plunged.

LIM CEO Mr John Kearney said at the 7th EU Iron Ore Conference in Vienna that the slump called into question the viability of developing or expanding Canadian mines that would lift production by about 200 million tonnes between 2018 and 2020

He told “”The finance ability of some of those projects has got to be questioned. We got beaten up really badly.”

Labrador lost money on two of three ore shipments sold in August, scaled back production to 1.7 million tons from 2 million tons and postponed USD 100 million of spending to develop a second mine next year, Kearney said.

Source - Bloomberg

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