Bloom Lake sale ‘bodes well’ for Wabush Mines, MHA Graham Letto says (CBC News Newfoundland and Labrador – February 02, 2016)

http://www.cbc.ca/news/canada/newfoundland-labrador/

MHA Graham Letto says he’s optimistic about the future of Labrador West, and Wabush Mines, now that the Quebec Superior Court has approved the sale of Bloom Lake.

“I think it’s very positive and it bodes well for any future sale of the Wabush Mines itself,” Letto told CBC Radio’s Labrador Morning.

The shuttered iron ore mine in northeastern Quebec was bought by Quebec Iron Ore Inc., a subsidiary of Champion Iron Ltd., for $10.5 million.

“The fact that the courts and the [Companies’ Creditors Arrangement Act] has approved the sale for $10.5 million — which is very, very surprising given that this asset was purchased only a few years ago for $4.9 billion — I think it bodes well for any future prospects for Wabush Mines.”

The Bloom Lake purchase agreement includes the mine and railway, as well as mineral claims owned by the Quinto Mining Corp. The deal is expected to be finalized before the end of March.

Letto said there’s still a lot of work to be done before the mine is operational.

In the past, he said, the Labrador West service sector was a major contributor to Bloom Lake. But until the mine is up and running, Letto said it’s impossible to know how much of an impact there will be.

For the rest of this article, click here: http://www.cbc.ca/news/canada/newfoundland-labrador/bloom-lake-graham-letto-wabush-mines-1.3428858

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