December 18, 1996
(Mines and Energy)

The following statement was issued today by Rex Gibbons, Minister of Mines and Energy. It was also read in the House of Assembly:

Yesterday, Perry Canning, M.H.A., Labrador West and I met with the Chief Executive Officer, Mr. John LeBoutillier, and the president, Mr. Derek Rance, of Iron Ore Company of Canada, and were informed of a major capital investment program by the company. I am very pleased to inform Members of the Ho

use of this new capital investment program at IOCC's operations in the Labrador City area.

The Board of Directors of IOCC have approved a capital expenditure program of $75 million for 1997 and 1998. This represents a major re- investment by the company in its mining, milling and pelletizing operations in Labrador West and is positive for the future of our Province's largest mining operation.

One of the key components of this capital investment program is the construction of a new flotation plant at Labrador City, which will result in increased recoveries of iron in the mill as well as decreased levels of silica (SiO2) in iron concentrates and pellets.

This means that IOCC will in the future have the ability to produce iron products which have the specific chemical composition to meet individual customer demands. In particular, the ability to produce low silica pellets will allow the company to produce pellets for the Direct Reduction Iron market, which is the fastest growing market for iron ore products.

I am very pleased that the Iron Ore Company of Canada has displayed its long term commitment to the province and to Labrador West by making this commitment to capital investment at this time. Its continuing re- investment and its dedication to quality improvements in all its products, means that Labrador will continue to be Canada's leading producer of iron ore and iron ore products.