Toronto, Ontario-based iron ore producer Adriana Resources Inc. announced Friday that it received positive results from a Preliminary Economic Assessment for a 50 million metric ton (mt) per year operation on the Lac Otelnuk iron ore project.
Studies show the project, an $8.5 billion joint venture with Chinese steelmaker Wuhan Iron and Steel Co. Ltd., could produce 50 million mt of iron pellets (or 175 million mt of iron ore) a year for up to 100 years. Based on those figures, Adriana's study pegs to total worth of the mine's production at $15.2 billion.
Additionally, a 506-mile (815 kilometer) railway will be constructed for the project, as well as port capacity expansion to accommodate Chinamax ore carriers.
"Lac Otelnuk has the potential of being the largest mining project in Canadian history and the largest private investment in the history of Quebec," said Allen J. Palmiere, the CEO of Adriana Resources. "We are excited about the future and look forward to advancing the project."