Labrador Iron Mines seeks court protection from creditors

April 2, 2015

Canada’s Labrador Iron Mines Holdings (TSX:LIM) disclosed Thursday it is seeking court protection from creditors, becoming this way the latest victim of slumping iron ore prices.

The company, which owns assets in the iron-ore-rich Labrador trough in Eastern Canada, halted last year all operations in the area, home to one of the world’s largest high-quality iron-ore deposits. It is now seeking to complete a restructuring so it can eventually resume operations.

Iron ore mining in the Labrador Trough region of Canada has been a hard sell recently, despite the Quebec government’s commitment of up to $19.2 million ($Cdn 20 million) for a feasibility study on a new rail link that would connect mines in the area to ports.

Read More: http://www.mining.com/labrador-iron-mines-seeks-court-protection-creditors/