Under the agreement, the iron ore will be delivered to Asian markets and resold by IOC’s marketing organization on the spot market.
Iron ore from LIM’s new James Mine in western Labrador is now transported by rail from its Silver Yards rail head to the Port of Sept-Iles where the ore is unloaded and stockpiled, adjacent to LIM’s Point-aux-Basques dock facilities.
According to LIM, the sale price for iron ore sold to IOC will be based on the actual realized prices to Chinese customers, less an allocation for handling, loading, shipping and sales costs.
