Survival Strategy: Every Bit Counts ? Introduction

Much of the mining industry in North America is in a crisis state. Host producers are operating at production levels well below capacity, some have been merged or sold, while others have been mothballed or closed permanently. For many of us still operating, the future is uncertain. Despite the many cutbacks and closures, there is still an abundant supply of minerals in the world market and there is almost no hope for any relief on price pressures on most mineral commodities in the near future. The Iron Ore Company of Canada (IOC)operates an iron ore mine, a concentrator and a pellet plant known as the Carol Project located in Labrador City, Newfoundland. This concentrator and the pellet plant have the annual capacity to produce 20 million and 10 million tons respectfully. A company owned and operated railway links this operation with the dock terminal facilities in Sept Iles, Quebec.