TORONTO (miningweekly.com) – Three more companies on Wednesday said they had secured shipping capacity at the Sept-Iles Port Authority’s new $220-million multiuser deep-water dock facility located in the Bay of Sept-Iles, at Pointe Noire.

Toronto-listed companies New Millenium Iron Ore (NML), Labrador Iron Mines (LIM) and Champion Minerals all said they had put down the initial deposit to buy in to the project, and secure long-term access to shipping capacity for their iron-ore projects slated for near-term operations.

The port authority finances the cost of the new deep-water dock by requiring binding commitments from the potential end-users obliging them to provide a portion of the necessary funds.

Under the agreement, half of the capital cost ($110-million) would be contributed as buy-in payments by five potential users, pro rata to each user's reserved tonnages. This buy-in payment constitutes an advance on future shipping fees, including wharfage and equipment fees and, as a result, the companies would receive a discount on their shipping fees until the full amount of the buy-in payment has been repaid through the discount.

The Sept-Iles harbour’s Phase 1 development would see it able to ship up to 50-million tons a year, and the port is an ideal location for year-round shipping in large ore carriers. Construction is expected to be complete by the end of March 2014.

NML said it had paid the first of two instalments, which would total $38.4-million, from its own cash reserves, providing it with access to a minimum of 15-million tons of yearly shipping capacity for 20 years. After this period, the company has the option to renew the contract for four more five-year terms.

The company has a take-or-pay obligation based on a discounted rate applied on 50% of the reserved capacity. NML is entitled under the agreement to transfer all or a portion of its yearly capacity and the associated take-or-pay obligation to other users of the dock.

The corporation controls the emerging Millennium Iron Range, located in Newfoundland and Labrador and in the Quebec, which holds a large undeveloped magnetic iron-ore deposit. In the same area, the company, in joint venture with Tata Steel, is advancing a direct shipping ore project to near-term production.

Tata Steel owns about 27% of NML and is the corporation's largest shareholder and strategic partner.

LIM, owns a portfolio of 20 iron-ore deposits in Labrador and Quebec. The company brought its James mine, which is connected by a direct rail link to the Port of Sept-Iles, on line in June 2011.

The company said it had paid its initial instalment of $6.4-million to reserve capacity to ship five-million tons a year from the port, with a right to secure additional residual capacity.

Champion Minerals, currently developing its fully owned Fire Lake North project, also secured a 20-year agreement to ship ten-million tons of iron-ore concentrate from the port by paying its first instalment of $12.8-million.

Champion's Fermont Iron Holdings, including the flagship Fire Lake North project, are located in close proximity to five producing iron mines.

The Fire Lake North property is located immediately next to and north of ArcelorMittal's operating Fire Lake mine and 60 km to the south of Cliffs Natural Resources' Bloom Lake mine in north-eastern Quebec.

Alderon Iron Ore on Monday said it had entered into an agreement with the Sept-Iles Port Authority that gave it a 20-year allocation to ship eight-million tons a year.