SOURCE: Industrial Info Resources

Industrial Info Resources

March 07, 2012 06:40 ET

Ocean-Front Land Available to Support New Industrial Development in Quebec, an Industrial Info News Alert

SUGAR LAND, TX--(Marketwire - Mar 7, 2012) - Written by John Egan for Industrial Info Resources (Sugar Land, Texas) -- The Quebec government unveiled its tremendous 25-year industrial development strategy for the northern part of its province last May. Plan Nord, as the plan is called, envisions up to $83 billion in public and private investments to develop and bring to market the province's vast deposits of iron ore, nickel, gold, silver, zinc and rare earths.

Industrial firms have eagerly responded to Plan Nord, particularly the Quebec government's offer to support infrastructure investments that will be needed to transport large volumes of minerals from their extraction points to terminals, ports and railway depots from which they can be transshipped to their ultimate markets in the Americas, Europe and Asia. For more on Plan Nord, see June 7, 2011, article -- Quebec Unveils Ambitious "Plan Nord" to Develop Power and Mineral Resources.

Even before Plan Nord was announced, industrial concerns had built plants in Seven Islands ("Sept-Îles" in French), a port city in Eastern Quebec, to take advantage of the area's strategic location, including a deep-water port on the Gulf of St. Lawrence. In recent years, global industrial giants like Rio Tinto plc (NYSE:RIO) (London, England), Cliffs Natural Resource Incorporated (NYSE:CLF) (Cleveland, Ohio), Adriana Resources Incorporated (TSV:ADI) (Toronto, Ontario) and Aluminerie Alouette (Sept-Îles, Quebec) have built or expanded facilities in and around Seven Islands.

Right now, a $500 million open-cast apatite mine project is under construction in the area. In addition, a $200 million project to expand the area's deepwater port and infrastructure will enable the world's largest freighters to dock there. Seven Islands is already Canada's second-largest port by tonnage. When the port expansion is complete, freighters with capacities of up to 400,000 tons can dock there.

The recent trek of industrial companies to Seven Islands is likely to become a stampede in the coming years, according to one developer. "In a few years, the Seven Islands area will be one of the world's great industrial centers," according to Seven Islands Development Corporation Limited. The development firm has several thousand acres of ocean-front land on the Gulf of St. Lawrence that is in the process of being developed to maximize its industrial potential.

Metaphorically and literally, the road to Plan Nord passes through, or very close to, Seven Islands Development's 5,000-acre parcel of land. With three miles of ocean frontage on the Gulf of St. Lawrence and two miles of frontage on the Moisie River, the developer's land is well situated and well suited, and it is now ready for immediate additional industrial development.

Manufacturers need fresh water for their machinery. Ports and terminals projects need access to the oceans. Seven Islands Development's land offers both, plus nearby access to the Sept-Îles airport, two rail lines, and a major highway that connects Northern Quebec to the Gulf of St. Lawrence. From that port, freighters can bring minerals or manufactured goods to virtually any market in the world.

Quebec's mineral resources are now more valuable than ever, given the provincial government's willingness to facilitate the construction of needed infrastructure. "The government's plan to develop Northern Quebec has given this area a new lease on life," the development firm said. "Right now, Seven Islands is a global hotbed of industrial activity, particularly mining, manufacturing and shipping."

In Northern Quebec, more than $20 billion of projects are scheduled to kick off between now and the end of 2014, according to Industrial Info's North American Metals & Minerals project database. Bringing the province's iron ore, nickel, gold, silver, zinc, diamonds and rare earths to market will require sizable investments in electricity, infrastructure and ports over the next 25 years. Some of the larger Metals & Minerals projects that are scheduled to kick off by yearend 2014 include:

  • Riviere-Koksoak Lac Otelnuk above-ground iron ore mine & pellet plant and Railway Transport System, a combination project being developed by Adriana Resources Incorporated that carries an $8.2 billion total investment value (TIV)
  • Amos Dumont above-ground nickel mine & mill, an $1.8 billion project being developed by Royal Nickel Corporation (TSX:RNX) (Amos, Quebec)
  • Schefferville Taconite KeMag above-ground iron ore mine, a $1.7 billion project being developed by Tata Steel Minerals Canada Limited (Montreal, Quebec), a unit of Tata Steel Limited (BSE:500470) (Mumbai)
  • Wemindji Eleonore Opinaca underground gold mine and mill, a $1.4 billion project being developed by Goldcorp Incorporated (NYSE:GG) (Vancouver, British Columbia)

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the "Contact Us" page.

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