Last checked at 4 Jul 2012 07:00
Anglesey Mining plc LSE:AYM
3 July 2012
Labrador Iron Mines - update on Schefferville situation
Anglesey Mining's 26% owned associate Labrador Iron Mines Holdings Limited ("LIM") reported today that a barricade is currently blocking access to its mining operations in the Schefferville area, which has also affected other mine developers and exploration companies within the region. LIM believes that the barricade consists of a local group of Schefferville residents, not sanctioned by any aboriginal community.
At this time, LIM's operations have been minimally impacted:
-- LIM continues to load its trains and transport its iron ore product to
the Port of Sept-Iles.
-- LIM is still on track to meet its 2012 saleable production target of 2
million tonnes of iron ore.
-- LIM continues to advance construction on its Phase 3 expansion of the
Silver Yards Process Plant.
-- For the safety and well-being of employees, mining operations,
including the Silver Yards Processing Facility, as well as exploration
work have been temporarily halted.
At present, the nature of the barricade is not completely understood as no direct contact has been made from any of the protestors. Initial reports and protest signs indicate some dissatisfaction with the Quebec Government's Plan Nord initiatives. LIM is committed to open and honest dialogue with stakeholders and members of the local community. Currently, LIM is engaged in dialogue with the local aboriginal band councils in an attempt to understand the protesters' concerns. LIM also understands that the local band councils are not in support of this barricade. LIM is taking a non-confrontational approach to the situation in order to affect a quick resolution of the dispute.
As part of a continuing commitment to establish long-term, cooperative, respectful and mutually-beneficial positive relationships with First Nations, LIM has signed an Impact Benefits Agreement (IBA) with four First Nations groups since 2008. Two of the four IBAs were signed with local First Nations: the Naskapi Nation of Kawawachikamach and the Innu Matimekush-Lac John.
While the protest has not disrupted planned sales activities in July at this point, it does have the potential to impact operations if the protest continues for a protracted period of time. LIM is, therefore, monitoring the situation closely.
About Labrador Iron Mines Holdings Limited
Labrador Iron Mines is Canada's newest iron ore producer. It owns a portfolio of direct shipping iron ore operations and projects located in the prolific Labrador Trough. Initial production commenced at the 100%-owned James Mine in June 2011 and LIM recorded the sale of nearly 400,000 tonnes of iron ore in the first start-up season. The first full production season commenced on April 2, 2012, with a sales target of 2 million tonnes of iron ore for the 2012 year.
LIM is focused on a strategic and robust growth plan arising from its portfolio of 20 iron ore deposits in Labrador and Quebec, all within 50 kilometres of the town of Schefferville. The James Mine is connected by a direct rail link to the Port of Sept-Iles, Qu©bec. The area also benefits from established infrastructure including the town, airport hydro power and railway service. Starting with the James Mine and leading to the development of the expanding Houston flagship project, the objective is to provide shareholders with long-term value as production and sales ramp up towards 5 million tonnes per year by 2015.
LIM is currently the only independently-owned Canadian iron ore producer listed on the Toronto Stock Exchange and trades under the symbol LIM.
About Anglesey Mining plc
Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited which is now producing iron ore from its James deposit, one of LIM's twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec.
Anglesey is also carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is estimated to be a total historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Ian Cuthbertson, Finance Director +44 (0)1248 361333;
Samantha Harrison / Klara Kaczmarek: RFC Ambrian +44 (0)2076 344700;
Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155
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