Iron Ore hopeful, Labrador Iron Mines (TSX:LIR) climbed 11% in early deals after the company said that it had received notification from the Canadian Environment Assessment Agency stating that it will not be required to complete a federal level assessment.
Shareholders cheered the update, and brushed off news that the mine start would be delayed until 2010 as the Minister of Environment and Conservation requested additional information related to water surface protection, storm water management, residue disposal options and potential use of the area by woodland caribou. The Major Projects Management Office also declared that the Project does not constitute a major natural resources project.
Labrador Iron Mines said that the additional request for information did not require it to complete any additional field work, but the request would require a further 100 days of public and ministerial review under Newfoundland and Labrador law. This 100 days would “limit the scope of work” that the Company would be able to complete in the 2009 summer, and hence the commercial production timeline has been pushed back to Q1 2010 instead of Q4 2009.
“The Company has signed a life of mine Impact Benefit Agreement with the Labrador Innu Association, representing the Sheshatshiu Innu First Nation and the Mushuau Innu First Nation, as well as Memoranda of Understanding with each of the Naskapi Nation of Kawawachikamach and the Innu Nation of Matimekush-Lac John (Schefferville) reflecting the agreement of the parties with respect to community support for the Project,” the company added. “Labrador Iron Mines anticipates the accrual to the Province and region of significant long term economic benefits in job creation, training, business opportunities and financial participation in the Project.”