MONTREAL - Champion Iron Ltd. says it will move ahead with an expansion of its Bloom Lake open pit mining complex in northeastern Quebec that is expected to double capacity and create 375 new permanent jobs.
The company says the project will take capacity to 15 million tonnes of iron ore per year.
It has approved spending about $512.6 million to complete the project over the next 18 months.
Funding of the expansion is to come from an amended credit facility, about $426 million in cash on hand and cash flows from operations.
Champion bought the Bloom Lake facilities from Cliffs Natural Resources for $10.5 million in 2016. It recommissioned the mine in 2018 and proposed the expansion in 2019.
CEO David Cataford says the decision to proceed is based on rising global demand for iron ore.
"Today's announcement is a major milestone for our company, our employees and the local communities", he said in a news release.
"With our high-grade iron ore in rising demand globally, a proven operational team and a conservative financial solution to fund the remaining construction of the Phase 2 project, our company is well-positioned to double Bloom Lake's nameplate capacity."
This report by The Canadian Press was first published Nov. 12, 2020.
Companies in this story: (TSX:CIA)
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