February 8, 2000
(Mines and Energy)

Minister welcomes IOC pricing agreement

Paul Dicks, Minister of Mines and Energy, said today he was pleased that the Iron Ore Company of Canada has negotiated price increases for the sale of pellets and concentrates in Europe for the year 2000.

The minister said the increase of 7.32 per cent for pellets and 5.15 per cent for concentrates reflects a strong demand for iron ore from the rebounding steel industry internationally.

"This increase in iron prices in significant when compared to the 1999 agreement which saw a 14.09 per cent decrease for pellets and an 11.97 decrease for concentrates," Mr. Dicks said.

Prices for iron ore products are settled annually through negotiations which begin in December and conclude in February. All prices are normally effective January 1and valid for the year.

"The higher prices and strong demand for pellets and concentrates is good news for the Iron Ore Company of Canada, its employees, residents of Labrador and the province as a whole," commented Mr. Dicks.

The minister said the total value of mineral production in Newfoundland and Labrador in 2000 is expected to increased by 20 per cent in 1999.

"We anticipate that the total value of mineral production in the province will exceed $1 billion (Canadian) in the year 2000 as a result of the increased prices and increased demand," Mr. Dicks said. "This will have a positive affect on the economy of Newfoundland and Labrador."

IOC is Canada�s largest iron ore pellet producer and the company sells high quality blast furnace and direct reduction pellets and concentrates from its extensive Labrador reserves.

Media contact: Gary Callahan, (709) 729-4890.

2000 02 08                                                     12:20 p.m.