Press Releases

Québec Confirms a $20-Million Investment to Support a Takeover of the Assets of the Lac Bloom Mine

A Plan Nord investment

Montréal, April 12, 2016 – Dominique Anglade, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy, Pierre Arcand, Minister of Energy and Natural Resources, Minister responsible for the Plan Nord and Minister responsible for the Côte-Nord region, and Luc Blanchette, Minister for Mines and Minister responsible for the Abitibi-Témiscamingue and Nord du Québec regions, confirmed today that the government is providing $20 million through the Capital Mines Hydrocarbures fund to support a takeover of the assets of the Lac Bloom mine by Champion Iron Limited and its subsidiary, Québec Iron Ore Inc.

Photo of trucks in an open pit mine

In addition, Ressources Québec, a subsidiary of Investissement Québec, is pursuing discussions with a view to granting a $6-million loan to Québec Iron Ore Inc. to assist with the project.

“With the Capital Mines Hydrocarbures fund, our government is here to help companies like Champion Iron Limited that are launching
growth-generating projects for the Québec mining industry,” said Minister Anglade. “The acquisition of the Lac Bloom mine’s assets is great news that will boost Québec’s competitive edge in the iron ore sector once market conditions are favourable again.”

The agreement for the purchase of the assets was approved by the Superior Court of Québec last January after Cliffs Quebec Iron Mining reached an arrangement with its creditors.

“The Lac Bloom mine is of strategic importance to Québec, especially the community of Fermont. It is therefore with great enthusiasm that we welcome this announcement on the takeover of its assets, which will provide further stimulus for economic activity in the Côte-Nord region and contribute to the Plan Nord’s success,” added Minister Arcand.

“Since the very beginning, our government has been there to answer Champion Iron Limited’s call and maintain the assets of the Lac Bloom mine, paving the way for the quick resumption of economic activity in the Côte-Nord mining industry. Today, we are proud to see that our efforts are paying off!” concluded Minister Blanchette.

Capital Mines Hydrocarbures fund
Created as part of the Ministère de l’Économie, de la Science et de l’Innovation and managed by Ressources Québec on behalf of the government, the Capital Mines Hydrocarbures fund has $1 billion in funding and is used by the Québec government to acquire stakes in mining, oil and gas companies that extract and process minerals on public lands. In particular, the fund was created to support the relaunched Plan Nord by providing an additional source of funding for private capital investment projects.

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