ArcelorMittal investing $2.1B in iron ore mine
ArcelorMittal is investing $2.1 billion in the expansion of its Mont-Wright mining complex in Quebec, a move that it says will create 8,000 jobs during construction.
FERMONT, Que.: ArcelorMittal is investing $2.1 billion in the expansion of its Mont-Wright mining complex in Quebec near Labrador and construction at Port-Cartier, a move that it says will create 8,000 jobs during construction.
The world’s largest steel producer and owner of Dofasco in Hamilton said the investment will allow ArcelorMittal Mines Canada to increase its annual production of iron ore concentrate from 14 million tons to 24 million tons by 2013.
“ArcelorMittal Mines Canada is a flagship mining asset for the Group, which offers considerable opportunity for expansion,” said Peter Kukielski, ArcelorMittal’s head of mining. “We have already announced our intention to grow our iron ore production to 100 million tons by 2015 and this expansion forms an important part of that.”
The Canadian mining division is also looking at increasing production of iron ore pellets from 9.2 million tons to 18.5 million tons as it seeks a secure supply of the raw material used to make steel at its blast furnaces in Hamilton, Quebec and elsewhere.
When construction is complete, the company said the investment will result in 900 permanent jobs in addition to the 1,100 people currently employed at the facilities.
Prices for iron ore, the most expensive ingredient in steelmaking, have surged on world markets despite sluggish demand. With its 7.9 billion tons of iron ore reserves, Canada had nearly 42% of the global resources as of 2009.
The Quebec expansion is part of the steel producer’s previously announced plan under pre-feasibility study to increase its internal supply of iron ore.
Files from Canadian Press