Consolidated Thompson Iron Mines
announced in mid-May 2010 receipt of a
positive feasibility study for an increase in
production capacity at its Bloom Lake iron
mine in Quebec, Canada, from 8 million to
16 million mt/y of 66.5% Fe concentrate.
Consolidated Thompson started production
at Bloom Lake during the first quarter of
2010, and deliveries under previously
signed off-take agreements were scheduled
to begin in June.
An early-production trainload of iron ore leaves Consolidated Thompson's Bloom Lake mine
in Quebec. The company
is moving ahead to increase production from the mine by 8 million
mt to a total of 16 million mt/y. (Photo
courtesy of Consolidated Thompson Iron Mines)
Based on the results of the feasibility
study, Thompson’s board of directors has
approved the increase in production to 16
million mt/y at total capital expenditures of
$525 million. Final engineering planning
is under way, and construction of the project
is expected to begin during the third
quarter of 2010. Thompson and its partner,
Wuhan Iron and Steel (WISCO), do not
anticipate any difficulty in funding the
project over a 24-month construction period.
WISCO has already indicated its interest
in acquiring additional off-take from
the expansion project.
The economics of the expansion are
based on an initial 17-year mine plan,
without accounting for potential reserve
additions that may be generated from the
West extension resources sector of the
Bloom Lake mine. Total life-of-mine operating
costs are estimated at $31.08/mt of
concentrate.
Mineral reserves contained in the
detailed Bloom Lake pit design include
463.4 million mt proven and 116.2 million
mt probable, for a total combined of
579.6 million mt at a grade of 30% Fe
based on a cut-off of 15%. The stripping
estimate (including inferred material) is
563.8 million mt, for an overall mine-life
stripping ratio of 0.97 mt of waste per mt
of ore. The overall pit wall slope angle is
planned at 48°, including allowance for
the ramp.
The Bloom Lake property, located in
Normanville Township, Duplessis County,
approximately 400 km north of Sept-Iles,
is situated approximately 10 km north of
the Mount Wright iron ore mining operation
of ArcelorMittal Mines Canada.
As featured in Womp 2010 Vol 05 - www.womp-int.com