CN, Miners to Study Rail Line for Quebec/Labrador Iron Ore Range

   By Judy McKinnon 
 

Canadian National Railway Co. (CNI) said Friday it will collaborate with one of Canada's biggest pension funds and a group of iron ore exploration and mining companies to fund a feasibility study for a potential rail line and terminal handling facility to tap the iron-ore production potential of northern Quebec and Labrador.

The Montreal-based railroad said it will work with Caisse de Depot et Placement du Quebec (CDP.YY) and several miners to study the cost and engineering parameters of a proposed rail network and related infrastructure.

"CN will work closely with mining companies in the group and the Caisse to determine the best design and right timing for the development of rail infrastructure to tap the significant iron ore production potential of the Labrador Trough in northern Quebec and Labrador," the company said in a statement.

Miners Cliffs Natural Resources Inc. (CLF), Labrador Iron Mines Holdings Ltd. (LIM.T), New Millennium Iron Corp. (NML.T), Cap-Ex Ventures Ltd. (CEV.T) and Alderon Iron Ore Corp. (AXX) will join CN and Caisse for the study.

CN is a major transporter of iron ore pellets, used in steel production.

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