A $800 million steel mill project in Baie-Comeau

https://www.lesaffaires.com/dossier/industrie-miniere/un-projet-d-acierie-de-800-m-a-baie-comeau/609300

Posted April 6th 2019

MINING INDUSTRY. For more than 20 years, Enrico Di Cesare has wanted to set up an iron transformation project in the Côte-Nord region. The CEO of North Shore Green Iron (NSGI Steel) says he has finally found the right way: the exploitation of the iron orebody and Ilmenite Nathalie. Located some 50 km northeast of Baie-Comeau, this deposit will allow it to move forward with the construction of a steel plant in the industrial-port area of ​​this city.

The Nathalie mine is not a deposit like the others. "It's a deposit that has completely recrystallized in a natural way, which makes it easier to crush the iron ore to recover ilmenite and iron oxide crystals. Otherwise, it costs too much to exploit, "explains Di Cesare. Another particularity: the deposit displays a one to one ratio of iron oxide and titanium. "We have the potential to make ilmenite concentrate of greater purity," he says. Ilmenite (or titanium dioxide) is used primarily for the white pigment used by the paint industry.

The deposit, known for several years, also has the advantage of being more easily accessible. "The outbreak of spruce budworm has led forest companies to find timber elsewhere, so to build roads in the mine," says Di Cesare. Finally, the mine is on the ancestral territory of the Pessamit First Nation, which would be favorable to the project. "We keep them informed as the project progresses," he says.

Chinese partner

In addition, the development of the Nathalie mining project is based on the construction of a steel plant whose production technologies are more efficient and greener. "The project is based on a process that generates 20% to 30% less carbon dioxide than the competition. This is a major advantage over traditional steel mills, "says Di Cesare.

The project is also made possible thanks to a technological and financial partnership established with the Chinese company Beijing Shoughang International Engineering Technology Company (BSIET), an engineering company owned by the giant Shougang specialized in the manufacture and marketing of chemical products. steels.

Other players are involved in this agreement, which led to the creation last fall of the Baie-Comeau Minerals Partnership development company. They are the mining companies Barlow Mine and Fancamp Exploration, which will act as investors and developers for the mining component, as well as the City of Baie-Comeau, the Baie-Comeau Port Management Corporation and Innovation and Development Manicouagan. In addition to its proximity to the mine, "the city of Baie-Comeau has the advantage of having large vacant lots that are near a deep-water port," says Di Cesare.

The Nathalie project, which will involve $ 800 million in investments and the creation of 300 jobs, is expected to produce one million tonnes of steel and 300,000 tonnes of ilmenite. The company also intends to recover phosphate to convert it into fertilizer. She plans to complete the feasibility studies by the end of 2019 and begin construction work early next year.