NML’s opportunity for value creation stems from its extensive property position in Canada’s principal iron ore district, the Labrador Trough, straddling the Province of Newfoundland and Labrador and the Province of Quebec.
Taconite Resources: Our Main Asset
The taconite deposits controlled by NML have similar characteristics in terms of geology, mineralogy and metallurgical properties. Each is a long-life property that can yield high-quality saleable products, including blast furnace and direct reduction grade pellets, with the same processing technologies. These deposits have been comprehensively assessed for their development potential through a series of studies, as follows:
• Carried out feasibility studies and published related technical reports centering on large-scale development of the KéMag and LabMag taconite properties, called the Taconite Project Feasibility Study;
• Completed exploration programs on five other taconite properties, which established NML among the largest holders of NI 43-101 magnetite iron ore deposits;
• Announced the results of the NuTac initiative to examine a further range of options for development of a taconite project sized for market entry when conditions permit, including the use of existing infrastructure.
Investment in Tata Steel Minerals Canada: A New Canadian Supplier to the Seaborne Market
In the same region, Tata Steel Minerals Canada (“TSMC”), in which NML has a 4.32% interest, has established a direct shipping ore (DSO) project. Subsidiaries of Tata Steel and Investissement Québec are 77.68% and 18% shareholders of TSMC, respectively.
The DSO project has seen a number of significant milestones, including:
• Seasonal ore production:
• Shipments of 2.3 million tonnes in 2015 and 1.6 million tonnes through Q3 2016;
• Construction of a processing plant to enhance ore quality and enable eventual year-round production;
• Commissioning of ancillary facilities, including rail and road infrastructure to service operations;
• Achievements in health, safety, community and environmental matters.