IOC ANNOUNCES PRICE SETTLEMENTS
Toronto, April 30, 2008
(Canada) Montreal, Sept-Îles, Labrador City, 30 April 2008 – The Iron Ore Company of Canada (IOC) has reached agreement with ThyssenKrupp Steel AG on prices for IOC Carol Lake iron pellets and concentrates for 2008.
The price of Carol Lake Acid Limestone iron ore pellets will increase by 86.67% per cent to US cents 228.82 per natural metric tonne unit.
The price of Carol Lake iron ore concentrate will increase by 68.75% per cent to US cents 145.80 per natural metric tonne unit.
A comparison with 2007 prices, in US cents per natural metric tonne unit, is as follows:
|
|
2007 |
|
2008 |
|
% change |
| Pellets |
|
122.58 |
|
228.82 |
|
+86.67% |
| Concentrates |
|
86.40 |
|
145.80 |
|
+68.75% |
About the Iron Ore Company of Canada (IOC)
IOC is the largest manufacturer of iron ore pellets in Canada and its customer base covers North American, European, Middle Eastern and Asian steel producers. The company operates a mine, concentrator and a pelletizing plant in Labrador City, Newfoundland and Labrador, as well as port facilities located in Sept-Îles (Quebec). It also operates a 418 kilometre railroad that links the mine to the port. IOC has approximately 1900 employees.
Labrador Iron Ore Royalty Income Fund (the “Fund”) through its wholly owned subsidiaries holds a 15.1% equity interest in IOC and receives a 7% gross overriding royalty and a 10¢ per tonne commission on all iron ore products produced, sold and shipped by IOC.
The increased pricing will substantially increase the Fund’s royalty revenue and should result in a substantial increase in the Fund’s share of IOC’s earnings.
For further information, please contact:
Bruce C. Bone
Chairman and Chief Executive Officer
(416) 863-7133
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