Business is going well for Champion Iron, owner of the iron mine Bloom lake, near Fermont: the mining company reported a record net income of $ 75.6 million for the first quarter ended the 30th June last.
The pandemic of the COVID-19, however, has led to operating costs of $ 4.6 million and a reduction of 10 % of its production during this period.
The chief executive officer of Champion Iron, David Cataford, he was pleased with the financial results, “which continue to highlight the agility of our team, which has managed to adapt our operations”, we read in a press release of the company published on Tuesday.
Champion Iron has also announced the injection of $ 30 million additional to the initial budget of $ 68 million within the framework of its expansion project. Phase II aims to double the mine’s production to increase to 15 million tonnes per year.
However, the final decision of the board of directors to start the project “has been postponed to a later date”.
The iron ore from the Bloom lake can now be used in the production of pellets for direct reduction. Tests were conducted to “qualify” the commercial production for this type of use.
Champion Iron has also acquired significant mining claims surrounding its operating site. These are gestures “that confirm [the company] as a leader of the industry,” said David Cataford.
Champion Iron avails itself of the tax relief measures of the federal and provincial government allows him to defer until September 30, the payment of the mining tax and on the profits for an amount of $14.2 million.
Moreover, the BAPE should make Wednesday night an information session on the expansion project of the site of the mine tailings of the mine in Bloom lake. This project will result in encroachment on more than 5000 square meters in lakes and water courses.
Citizens and agencies have until August 24 to request a public consultation of this project.