Report: CN suspended its participation in the North Plan (Plan Nord)
CN suspended its participation in the North Plan
The carrier is #$%$ off by the conflicting signals from the mining and technical challenges
February 8, 2013
The Northern Plan train project derailed. The company of the Canadian national railway's (CN) Canada puts on hold the proposed construction of a railway from hundreds of kilometres between the mining projects of the Labrador trough and the port of Sept-îles, told Le Devoir.
CN recently stopped the feasibility study and environmental #$%$ment of the trace to #$%$ mining of iron mining companies 'schedules'. At this time, "there nothing excluded", including the abandonment of the project by CN, which would be a blow to the centerpiece of the former Government, the Plan Nord.
«It is, with respect to this initiative there, how to say, pause, said the spokesman for CN, Louis - Antoine Paquin, in an telephone interview with Le Devoir. "CN and our partner, the Caisse de dépôt et placement, carry out an evaluation of the project with the client group. It seems that some mining projects are delayed", he continued.
Cliffs Natural Resources, Labrador Iron Mines Holdings, New Millennium Iron Corp., Cap - Ex Ventures, Alderon Iron Ore Corp., as well as Champion Iron Mines Limited formed a group of mining companies have expressed an interest in the establishment of a rail link between the part Labrador trough iron deposits of the Quebec - Newfoundland and Labrador border.
'We had held our model of preliminary economic #$%$ment, that CN construct the path of iron, but in the preliminary study, we assume rather that we have to build ourselves railway', said duty Director Champion Iron Mines Limited investors, Katrina Chua relationships, in the wake of the publication of the preliminary Consolidated Fire Lake North project feasibility study.
CN must decide at the latest in June, after which mining companies could decide to go it alone.
"We will take appropriate decisions as to the feasibility study and environmental #$%$ment once it has received the results, merely to say Mr. Paquin of CN Thursday afternoon.
The idea of bringing together six mining companies around another railway project in the region of Nord-du-Québec is not ruled out, like that of permission to ArcelorMittal so six players ore borrows its iron private path that is not currently being used to the maximum of its capacity. Six mining companies should, however, to build a stretch of 50-60 km.
"They [CN] really until the end of June to get back to everyone with the agreement and finalize their feasibility study. We can't really approach other companies in the trust, and other companies can not approach until CN come to a decision", stated Ms. Chua. "This is part of the agreement."
In addition to measure once again the interest of the mining companies for the extraction of iron ore to more than 800 kilometres north of the St. Lawrence River, CN would be #$%$ off by the technical challenges appearing before her if she decides to compete, according to a source consulted by Le Devoir.
Attracted by the iron deposits
The private project valued at some $ 5 billion was intended to serve the mining companies wishing to settle in the Labrador trough, attracted by the iron deposits it contains.
Last October, the Director of CN, Julie Sénécal, governmental and public affairs had however indicated that the election of a Government of the Parti Québécois a month previously had no impact on the railway project. "We continue to go forward," she said in an interview with the daily Le Soleil.
The railway company had been published in Canadian publications, American and European a notice calling mining companies interested to swell the train to show customer.
In March 2012, Finance Minister Raymond Bachand announced that CN Associate at the CDPQ for the establishment of a rail link between Sept-îles and Schefferville. The opposition finance spokesman Nicolas Marceau - today the Minister of finance and economy - watched askance CDPQ investment in the railway project, deeming it "very risky for an institution that is mandated to grow the contributions by Quebecers.
The Innu communities of Uashat and Maliotenam were pressed Quebec and Ottawa to conduct a "full and thorough" environmental #$%$ment of railway of CN and the CDPQ project, considerate at the same time that the railway company should get the green light before continuing its work.
The idea of building a railway used to export our [natural] resources' outside the borders of Quebec without processing ' does not look», had for its part argued the Steelworkers.
How big a blow would it be to AXX if this project was just completely abandoned? It seems as though this scenario has been explored and would be manageable to the miners but would probably cause more delays and higher costs. Yes?