Lake Otelnuk hides a large deposit of iron ore, north of Schefferville.
The MetalQuest Mining company, which wishes to exploit the large iron deposit of Lake Otelnuk 165 km north of Schefferville, has just unveiled a study on the transport of the ore to a deep-water port. Specialists assessed three rail corridors. Reaching Port-Cartier or Sept-Îles would require 152 km of new track, while the route to Labrador represents the construction of 610 km of rail.
The study by the specialist firm Watts Griffis & McOuat assessed the costs, impacts and benefits of the three options. WGM calculates that the railways to Port-Cartier and Sept-Îles are at capacity and would require significant expansions to handle goods coming from Lac Otelnuk. The facilities in Labrador are underutilized, but this option only offers 9 months of operation per year, unlike the ports operating 12 months per year in Sept-Rivières.
Agreement with the Innu
The final decision could depend on the support of governments and indigenous communities. In its October 25 press release, MetalQuest Mining specifies that the next step has been entrusted to the consulting firm Wasayao Strategy Group to conclude a memorandum of understanding with local First Nations and other potential partners.
The Ontario company Metal Quest owns 100% of the Lake Otelnuk deposit, which it considers one of the largest undeveloped iron ore projects in North America. It was valued at $13 billion by former developers Adriana Resources and Chinese company Wuhan Iron & Steel.
2023-10-29 23:01:58
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