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.
Write to Judy McKinnon at judy.mckinnon@dowjones.com
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