Iron Ore Company of Canada (often abbreviated to IOC) () is a Canadian-based producer of iron ore. The company was founded in 1949 by a partnership of Canadian and American firms. It is now owned by a new consortium, including the Mitsubishi and Rio Tinto corporations. Rio Tinto is the majority shareholder in the venture, with 58.7% of the joint stock as of October 2013. Mitsubishi controlled 26.2% of the investment as of March 2013.
Synopsis
Based in Montreal, Quebec, IOC currently has open-pit mining and concentrator operations in Labrador City, and operates the Quebec North Shore and Labrador Railway to ship ore concentrate from the mines, such as Wabush, to the port of Sept-Îles, Quebec where it has a furnace and port facilities. The mining operations have a nominal capacity of 55 million tonnes per year. The railway (along with the TSH, CFAQ, and WABL lines) form an isolated railroad network, as it does not interchange with any other rail lines on the North American network.
IOC is amongst the five top producers of seaborne iron ore pellets in the world. The iron ore deposits occur as specular hematite and magnetite, in a 2:1 ratio. The company has mineral reserves of 1.1 billion tonnes and resources of 1.7 billion tonnes. The average grade at mine exit is approximately 38% iron. The company brings to market several products including acid pellets, fluxed pellets, and direct reduction pellets, as well as iron ore concentrate.
Milling process
The crushed ore iron content is increased in Labrador City from 38% to a two-thirds ratio by a grinding process. A sequence of four wet mills feeds into a gravity spiral plant to increase the grade. The concentrate production capacity is approximately 23.3 million tonnes per year.
Pelletizing process
The pellet plant converts the concentrate output from the mills into pellets that can be used directly in the blast furnaces of customers. The concentrate is first ground in ball mills and is then formed into balls of diameter 9.5mm to 12.5mm that are dried and then fired in the furnace. The plant has a nominal capacity to produce 12.5 million tonnes per year.
Shipping process
IOC wholly owns and operates a marine terminal in Sept-Îles. It receives and stockpiles iron ore pellets and concentrate from Labrador City via the QNSL railway. The capacity of the stockpile yard is 20.6 million tonnes per year; at any one time 4.5 million tonnes of iron ore products can be stored.
The shiploading capacity is 20.9 million tonnes per year. Two mobile shiploaders transfer the iron ore product onto the docked freighters. The Sept-Îles terminal operates year-round and can handle ships with a capacity of between 25,000 and 255,000 tonnes.
Customers
In addition to the Japanese, IOC supplies companies like Salzgitter AG and several German steel works.
History
The IOC's predecessor existed from its birth on the Newfoundland statute book of 1938 as Labrador Mining and Exploration Limited (LM&E), which company was granted extensive exploration and mining rights on the mainland. LM&E discovered the iron ore that now constitutes the mine operated by IOC. LM&E received grants of leases and licences from the dominion under the Statutory Agreement. It also received a grant of surface rights to establish the town site that became Labrador City. LM&E in turn sublet the leasehold to the IOC and IOC built the infrastructure, the mine, the railway and the port. The LM&E has taken various forms over the years and since 2010 exists as the Labrador Iron Ore Royalty Corporation (LIORC). No matter the particular corporate form, its treasury receives a 7% gross overriding royalty on iron ore products produced and sold by IOC.
The IOC was founded in 1949 by a partnership of Canadian and American firms, most notably Hollinger, Labrador Mining, National Republic, Armco, Youngstown and Wheeling-Pittsburg, and the M.A. Hanna Company.
From 1977 to 1983 the president of the company was Brian Mulroney, who later served as the 18th Prime Minister of Canada from 1984 to 1993.
Rio Tinto PLC acquired the IOC in August 2000, as part of their successful hostile takeover of Australian company North Ltd. In December 2000 they wanted to buy more of the company. The bid failed in April 2001 when only 20% of the LIORIF shares were tendered.
In August 2007 $60 million was invested to increase production at Labrador City, from 17MT to 18.4MT in mid-2008. At the time Sam Walsh was in the driver's seat at Rio Tinto Iron Ore.
On 6 May 2010 Rio Tinto PLC announced that it was investing US$235 million in an expansion program at the IOC.