Toronto, Ontario-based iron ore producer Labrador Iron Mines Holdings Limited (LIM) has announced that it is halting mining operations for the rest of 2014 mainly due to the prevailing low price of iron ore in 2014 to date.
The company plans to focus on developing its Houston Mine near Schefferville in northern Quebec and expects, subject to completion of financing and negotiation of major contracts, to be in a position to begin mining production from Houston in 2015. Additionally, as part of its plan to establish a lower cost operating framework and substantially reduce operating costs, LIM is seeking to negotiate revised commercial terms with its major contractors and suppliers.
In the financial year 2013-14 ended on March 31, 2014, LIM reported net revenue from mining operations of $85.9 million, down 10.2 percent year on year, on sales of 1.6 million dry mt of iron ore in ten shipments completed during the year.