Feasibility Study Announced for Cape Breton

Cape Bretoners could be one step closer to having more good jobs and a growing economy with the announcement today, March 18, of the first phase of a feasibility study for a potential metallic production facility in Sydney.

International Iron Beneficiation Group Ltd. is commissioning a series of studies to examine the feasibility of establishing a manufacturing facility that would use an innovative process to convert superfine iron ore into metallic iron units used for steel production in other jurisdictions. If the facility proceeds, it would result in significant investment and job creation in the community.

"We all know what new good jobs would mean to Cape Breton but we're only going to move forward if it's right for the environment and for the community," said Deputy Premier Frank Corbett. "While we're in the early stages and there are still some unknowns, this could be a game changer for Cape Breton and for the rest of the province."

The province will spend $400,000 for a feasibility study and power rate study.

If the project goes ahead, the company will have to meet all federal and provincial environmental regulations.

Enterprise Cape Breton Corp. will also invest $300,000 for the studies. International Iron Beneficiation Group Ltd. is responsible for the remaining cost of the studies, which could exceed $2 million.

"This project has the potential to be transformative in terms of the economic development of the region," said John Lynn, CEO of Enterprise Cape Breton Corp. "The company's interest in the Port of Sydney is directly related to the dredging of the harbour channel that accentuates the island's strategic advantage in terms of access to markets, proximity to natural resources and availability of land for commercial activity."

The feasibility study will provide International Iron Beneficiation Group Ltd. with information about the Sydney site and enable it to make a decision on whether to proceed with the project.

As part of the feasibility study, Nova Scotians will have the opportunity to provide their input and feedback through public meetings and written submissions. The company would use an innovative process developed by the International Mineral Beneficiation Services based in South Africa to convert superfine iron ore into metallic iron units used for steel production.

International Iron Beneficiation Group Ltd. is an affiliate of OAO Severstal, one of the world's leading vertically integrated steel and steel-related mining companies.

"It is important for our company to conduct the necessary due diligence to determine the feasibility and investment priority of the Sydney Nova Scotia site," said Dmitry Solomin, company CEO. "I caution that no final commitments can be made at this very early stage of the business development process."

The feasibility study and power rate study is expected to be completed in 2014. The final decision on whether to proceed with the project will be made by the company at the completion of these studies.