Labrador Iron Mines cuts capital investment amid falling iron ore prices

Toronto, Ontario-based iron ore producer Labrador Iron Mines Holdings Limited (LIM) has provided an update regarding its Schefferville Area iron ore mining operations and guidance on capital spending programs for the balance of 2012.
 
In August, LIM sold three shipments totaling approximately 520,000 wet mt of iron ore, while it has sold seven shipments of iron ore totaling 1.2 million wet mt since beginning of the year. In the given month the company shipped 275,000 wet mt to Port of Sept-Îles in Quebec by railway and the year-to-date rail transportation volume reached 1.1 million wet mt. LIM added that it remains on track to meet its sales target of 2 million mt of iron ore in 2012.
 
Due to challenging market conditions and the sharp decline in spot iron ore prices, LIM has revised its capital investment plans. Accordingly, the 2012 exploration program has been reduced to $5 million from the original budget of $8.6 million and about $52 million of planned capital investment has been deferred to 2013.