Champion Iron: Ready to Fill the Demand for High-Grade Iron Ore
Positioned to Meet the Soaring Demand for High-Grade Iron Ore
Champion Iron is an iron ore exploration and development company. They have major projects in the southern Labrador Trough, Canada’s largest iron ore producing region.
The Company, through its wholly owned subsidiary Champion Iron Mines Limited, is developing eight iron rich projects in a 707 km2 area. Further, each project is strategically located close to the electrical grid, all-season roads and railway lines. This infrastructure connects the projects to a terminal located in water that does not freeze, on the north shore of the Gulf of St. Lawrence.
On April 11, 2016, Champion Iron officially became the new owner of the Bloom Lake Mine facilities. They acquired it from Cliffs Natural Resources for $10.5 million. Moreover, the property is approximately 13 km north of Fermont, Québec. It also sits 10 km north of the Mont Wright iron ore mining complex belonging to ArcelorMittal Mines Canada. Further, the Phase I project has a target recovery rate of 83%, while the Phase II expansion project has a target recovery of 82.4%.
According to CEO David Cataford, there are two main reasons why iron ore is so attractive in the world today. “One, there are not that many projects that can actually produce high-grade in the world. Secondly, the steel business is working to reduce their CO2 footprint,” he says.
The Phase I Feasibility Study estimated an average production cost of C$44.62/dmt (C1 Cash Cost). The Phase II expansion Feasibility Study estimated an average production cost of C$46.6/dmt (C1 Cash Cost).
The initial Feasibility Study released on February 16, 2017 estimated a Net Present Value (NPV 8%) after-tax of C$984M. In addition, the Phase II expansion Feasibility Study released on June 20, 2019 estimates a Net Present Value (NPV 8%) after-tax of C$2.384B.
With production at the mine in full swing, Champion also repositioned the mines operating costs to allow the company to compete globally. “We’ve managed to improve the cash position of the company by one hundred forty million dollars,” says Cataford. “
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