The Provincial Government is encouraging Consolidated Thompson to continue to look at possible synergies between its Bloom Lake iron ore project and Wabush Mines.

"I spoke with representatives of Consolidated Thompson this week myself to strongly encourage them to keep exploring ways to make a business partnership work between the two operations because of the important impact it could have for the region," said the Honourable Danny Williams, Premier of Newfoundland and Labrador. "We believe incorporating Wabush Mines in the development plans for the Bloom Lake project will result in a win/win for the two operations and for Labrador West."

Consolidated Thompson has expressed interest in Wabush Mines and how that operation could complement its 500-million tonne Bloom Lake iron ore project in Quebec. Part of the plan is to link Bloom Lake to the rail line that connects Labrador to the Quebec North Shore, which opens up possibilities for synergies with Wabush Mines.

"We really think there is a basis for an arrangement that will benefit and strengthen the business cases for both operations and we want to see the companies take a fresh look at this," said the Honourable Kathy Dunderdale, Minister of Natural Resources. "I think there is interest on behalf of the companies to make this happen and that bodes very well for Labrador West and the future of Wabush Mines. We believe the Bloom Lake project is stronger with Wabush Mines."

The company entered into a period of exclusive discussions with the owners of Wabush Mines into possible synergies between the two operations in December, but that period of exclusivity expired in mid-January.

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2007 02 09                                            12:50 p.m.