ArcelorMittal invests $2.1B in Quebec’s iron ore expansion

ArcelorMittal (MT-N) is spending $2.1 billion to expand its Mont-Wright mining complex and Port-Cartier in Quebec.

The expansion would boost the company’s annual iron ore concentrate production from 14 million tons to 24 million tons in 2013, which is part of the plan to grow its iron ore production to 100 million tons by 2015, said Peter Kukielski, the company’s head of mining, in a press release. 

ArcelorMittal, which accounts for 40% of Canada’s iron ore production, is also looking to double its iron ore pellet production from 9.2 million tons to 18.5 million tons, adding that the $2.1-billion investment would create 8,000 jobs during construction and more than 900 permanent jobs once the expansion is completed.

The company, which is a leading supplier of iron ore to the steel market, announced its expansion plan at the Mont-Wright facility on May 20, which was attended by the province’s Premier Jean Charest, mayors of Fermont and Port-Cartier, and representatives from the local communities.

The company says that Plan Nord, which was unveiled by Premier Charest in early May, makes its expansion more attractive.

Under the plan, the Quebec government aims to invest $80 billion of public and private money over 25 years to build infrastructure and increase accessibility in the northern parts of the province, estimating that the plan would create roughly 20,000 jobs a year.

Currently, at the Mont-Wright mining complex the company employs 1,000. The mining complex includes: a large open-pit mine, an ore crusher and a concentrator, maintenance workshops, a storage facility and a train loading system.

The mine at Mont-Wright has combined reserves and resources of 1 billion tonnes of crude ore with an average grade of 30% iron. The company says every 2.6 tonnes of crude ore produces 1 tonne of concentrate.

Two-thirds of the concentrate is currently turned into pellets, the rest is either sent to the stockpiles or the port.

ArcelorMittal’s expansion project still needs environmental and regulatory approvals.