Railway, miners to study infrastructure project for Quebec-Labrador iron belt

MONTREAL – Canadian National Railway (TSX:CNR), several mining companies and a major pension fund manager are looking at building new transportation infrastructure to serve iron ore producers at the Quebec-Labrador border.

Besides Montreal-based CN, the participants include the Caisse de depot pension fund manager as well as Labrador Iron Mines Holdings Ltd. (TSX:LIM).

Other partners include Cliffs Natural Resources Inc. (NYSE:CLF), a big multinational iron ore producer, as well as Canadian public mining companies New Millennium Iron (TSX:NML) and Alderon Iron Ore Corp. (TSX:ADV).

The group has agreed to fund a feasibility study to analyse the cost and engineering requirements for a rail line and ore-handling terminal.

CN says it will co-ordinate an application to the Canadian Environmental Assessment Agency, clearing the way with discussions with affected parties including First Nations.

Canadian National didn’t disclose how much the project might cost or when it could be completed.