Canadian National Railway has decided not to build a new rail line and terminal to serve the Quebec/Labrador iron ore range after a feasibility study determined the financial risk was too great.
A joint review with a half dozen mining companies determined that iron ore volumes would not be great enough to justify the cost of the new infrastructure because of divergent construction schedules and needs of each mining company.
The decision of some mining companies in the region not to join the group of companies supporting the CN project factored into the much lower projections for iron ore volumes for the foreseeable future, CN said.
The Caisse, a Canadian private equity fund manager, said it still believes in the long-term potential of the iron ore market in Quebec once the global economy improves. - Eric Kulisch