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Anglesey Mining – Labrador barriers to be removed

Friday, September 3rd, 2010

Anglesey Mining plc’s 41% owned associate Labrador Iron Mines (TSX:LIM) has reported that agreement has been reached with the Innu Matimekush–Lac John to immediately remove the barriers that had restricted normal access from the town of Schefferville to adjacent mining properties and thereby enable the ongoing development of LIM’s iron ore projects in Western Labrador and Quebec.
This agreement was achieved following detailed negotiations between LIM and representatives of the Quebec Innu, including Innu Matimekush – Lac John (Schefferville) and Innu Takuaikan Uashat Mak Mani–Utenam (Sept-Iles), and following discussions and consultations between the Quebec Innu and the various Governments, including meetings in Schefferville attended by representatives of the Government of Newfoundland and Labrador and the Government of Quebec and representatives of the Federal Minister of Indian and Northern Affairs. Each of the Governments has made certain commitments to the Innu towards resolving a number of issues that will help facilitate the mining projects in the Schefferville area to move forward on an ongoing basis.
Under the agreement with Innu Matimekush – Lac John, which was ratified by public meeting of the community on September 1, Labrador Iron Mines, together with New Millennium Capital Corp., have committed to jointly support a number of local social activities, including some education, training, health and youth programs and, with Government participation, improvements to the community arena facility in Schefferville.
Following the agreement, construction of LIM’s iron ore project in Western Labrador will now proceed on a fast track basis and LIM will proceed with negotiations with the Innu Matimekush–Lac John towards concluding an Impact Benefits Agreement.
LIM will also continue detailed negotiations towards signing an Impact Benefits Agreement with Innu Takuaikan Uashat Mak Mani–Utenam who, as had been previously anticipated, have initiated legal action against the Government of Newfoundland and Labrador regarding the Crown’s duty of consultation with respect to the permitting of LIM’s Schefferville Area Iron Ore Project in Western Labrador.
“LIM is extremely pleased that, with the co-operation of all three Governments, agreement has been reached with the Quebec Innu paving the way for construction of our project so that commercial production of iron ore can commence in 2011.” said John Kearney Chairman and Chief Executive. “We look forward to concluding negotiations on the IBA agreements and to further developing a harmonious and long term working relationship with all of our aboriginal partners for the mutual benefit of all stakeholders” added Mr. Kearney.
Project Construction to Commence Immediately
LIM is now planning to immediately commence ground clearing, in parallel with contractor mobilization, to be followed by civil construction and mechanical erection of the plant in the subsequent weeks. It is expected that the beneficiation plant will be fully erected in about 12 weeks. In parallel to the plant construction the mine accommodation camp will be brought to site and erected some 4 kilometers south-east of the plant site.
During the last several weeks a significant portion of the infrastructure and beneficiation plant has been transported by rail from a railhead near Labrador City to Schefferville via the TSH aboriginal railroad, which is jointly owned by the two Quebec Innu communities and the Naskapi Nation. These items are now being assembled in Schefferville and ready for road transport over three kilometers to LIM’s Silver Yard beneficiation site in Labrador. Further rail shipments, direct to Silver Yard on LIM’s spur line, are planned for the coming weeks.
Initial open-pit waste removal and mine extraction will also be carried out using local contractors to enable ore to be stockpiled on the crusher pad ahead of dry run testing of the beneficiation plant.
The construction of the plant and camp and the initiation of mining activities, prior to the onset of the mid-winter, will enable commercial production activities to commence in the spring of 2011.
The last two major operating permits, for the operation of the mine and the operation of the rail spur, are expected to be issued shortly by the Government of Newfoundland and Labrador following a consultation process with potentially affected First Nations.
(Ref 1709)

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