Canadian iron ore miner Quebec Iron Ore has signed an agreement with the Japanese commodities firm Sojitz to restart its iron ore mine in Bloom Lake Quebec, its parent company Champion Iron has announced.
Sojitz has agreed to purchase 3 million dry tonnes a year of high grade iron ore for a five-year period, once commercial production resumes.
To ensure that work can begin in time for the summer construction season, Champion has also announced a $40 million bridging finance agreement. The financing consists of a C$20 million loan from Sojitz, a C$6 million loan from Quebec Iron Ore investor Ressources Quebec, and a $14 million equity investment from Champion and the Quebec Government.
The Bloom Lake operation is forecast to be more than $15 billion in revenue over the next two decades. According to Champion, the mine could have a bright future as one the region’s most economically important long-life ore mines.