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Labrador Iron Mines sees no "adverse impact" from rail plan suspension
February 15, 2013 / 1:20 PM / 5 years ago

Labrador Iron Mines sees no "adverse impact" from rail plan suspension

Feb 15 (Reuters) - Labrador Iron Mines Holdings Ltd said Canadian National Railway Co’s plans to suspend a proposed new rail line to its mines in the Labrador Trough region will not have an “adverse impact” on its operations.

The iron ore miner’s shares have fallen 10 percent since Feb. 8, when CN, Canada’s biggest railroad, said it had halted a study into the feasibility of building an 800 km (500-mile) line to connect the isolated region to port.

Labrador said on Friday it would be reimbursed its advance payment of C$1.5 million.

The company, which has a market value of about C$100 million, has iron ore operations in the Labrador Trough, a geological formation extending south-southeast through Quebec and Labrador and home to vast deposits of iron ore.

The company also reported a third-quarter net loss of C$16.1 million, or 19 Canadian cents per share. Revenue was C$24.7 million.

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