SEPT-ÎLES, June 22, 2016 – The Port of Sept-Îles served Champion Iron Mines Ltd. (Champion) with a notice of arbitration under the mechanism provided for in the Port’s multi-user dock contract (the Contract).

The purpose of the notice of arbitration is to compel Champion to fulfil its contractual obligations and to pay in full the buy-in payment of $19,581,000 plus interest agreed upon in the Contract.

The arbitration will take place in accordance with Quebec’s Code of Civil Procedure, which establishes the process for nominating the arbitrator and conducting the arbitration.

Five users signed the Contract in 2012 for the construction of the new dock. Champion’s refusal to pay in full the buy-in payment in 2013 unduly burdened the Port with significant and unexpected financial costs. In initiating these legal proceedings, the Port is seeking to protect its interests and those of the Contract’s other partners by reminding Champion of its responsibility to fulfil its contractual obligations.

Aside from its dispute with Champion, the Port intends to continue working closely with the Quebec government through its limited partnership with Société ferroviaire et portuaire de Pointe-Noire (SFPPN) to provide a quick stimulus to Pointe-Noire’s assets and make the multi-user dock operational.

ABOUT THE PORT OF SEPT-ÎLES

Boasting diverse, state-of-the-art facilities, the Port of Sept-Îles is one of North America’s largest ore-handling ports. The port facilities at Sept-Îles play a vital and strategic role in the economy of Eastern Canada. Annual economic impacts are estimated at nearly $1 billion and almost 4,000 direct and indirect jobs.

Source:

Patsy Keays
Director, Corporate Affairs
Port of Sept-Îles
418-961-1235