LIM Signs Rail Transportation Agreement


 
TIDMAYM 
 
10 March 2010 LSE:AYM 
 
LIM Signs Rail Transportation Agreement with QNS&L 
 
Anglesey Mining's 41% owned associate Labrador Iron Mines Holdings Limited 
(TSX: LIM) is pleased to announce that it has entered into a life of mine 
Confidential Rail Transportation Contract with Quebec North Shore and Labrador 
Railway Company Inc. ("QNS&L"), a wholly owned subsidiary of the Iron Ore 
Company of Canada, for the transportation of iron ore from LIM's DSO iron ore 
projects near Schefferville. 
 
The Contract provides that QNS&L will carry LIM's iron ore from Emeril 
Junction, Newfoundland and Labrador, to Sept-?les Junction, Quebec, on the QNS& 
L Railway. The QNS&L Railway already carries iron ore for each of the Iron Ore 
Company of Canada; Wabush Mines and Consolidated Thompson (Cliffs Resources) 
Bloom Lake Mine. The Port of Sept-?les is the largest iron ore export port in 
Canada and in 2010 about 30 million tonnes of iron ore were shipped to 
customers all over the world. 
 
The Confidential Rail Transportation Contract provides for a confidential 
tariff, with various capacity and volume commitments on the part of each of QNS 
&L and LIM. The iron ore will be delivered from LIM's Silver Yards Plant, near 
Schefferville, to Emeril Junction by Tshiuetin Rail Transportation Inc. ("TSH") 
(see LIM Press Release dated February 24, 2011). 
 
The haulage railcars will be provided by LIM and the locomotives supplied and 
operated by QNS&L. LIM has agreed to make advance payments to QNS&L to secure 
the locomotive equipment and infrastructure capacity to meet LIM's service 
needs under the Contract. LIM will advance $5 million to QNS&L upon 
commencement of the Contract, with a further $5 million advance payable in 
October 2011 and a final advance payment of $15 million in June 2012 to secure 
the locomotives required to haul LIM's anticipated increases in production and 
shipment volumes. 
 
These advance payments will be repaid by QNS&L to LIM by means of a special 
credit of $3.50 per tonne against all tonnes hauled, commencing July 2012, 
until all advance payments have been repaid in full. 
 
John Kearney, Chairman and Chief Executive of Labrador Iron Mines Holdings 
Limited said: "We are very pleased to have signed a life of mine rail 
transportation contract with QNS&L which, together with our recent agreement 
with TSH Rail, will ensure transportation for LIM's iron ore to the Port of 
Sept Iles." 
 
"Signing of this rail transportation agreement is a significant milestone in 
the development of our Schefferville Area iron ore projects in western Labrador 
and northeastern Quebec and we look forward to a long term business 
relationship with QNS&L, the major rail transport operator of most of the iron 
ore in the Labrador Trough," added Mr. Kearney. 
 
About Labrador Iron Mines Holdings Limited (LIM) 
 
LIM's Schefferville Area project involves the development of twenty direct 
shipping iron ore deposits in western Labrador and north-eastern Quebec near 
Schefferville, Quebec. The Company's properties are part of the historic 
Schefferville area iron ore district where mining of adjacent deposits was 
previously carried out by the Iron Ore Company of Canada from 1954 to 1982. 
 
Labrador Iron Mines contemplates mining in stages, the first phase of Stage 1 
comprising the James and Redmond deposits, which are located in close proximity 
to existing infrastructure, and for which all operating permits have been 
issued and plant construction and mine development is nearing completion. 
 
For further information, please view www.labradorironmines.ca 
 
About Anglesey Mining plc 
 
Anglesey Mining with its LSE main board listing is primarily focused on its 
41% interest in Labrador Iron Mines (TSX:LIM). In addition to any new projects 
that may be brought forward the company owns 100% of Parys Mountain in North 
Wales with an historical resource in excess of 7 million tonnes at over 
9% combined copper, lead and zinc. 
 
For further information, please contact: 
Bill Hooley, Chief Executive +44 (0) 1492 541981 
Ian Cuthbertson, Finance Director +44 (0) 1248 361333 
Emily Fenton / Charlie Geller, 
Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035 
 
 
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