2 On A ugust 10 th 2015 g o v e r nment announced that the under g round mine at V oisey s Ba y had been sanctioned b y VNL s parent company V ale as per the ter ms of the Dev elopment Ag reement Constr uction acti vity star ted in 2016 and ore pro duction is projected to begin in 2020 Underg round mine dev elopment will include both the R eid Brook and Easter n Dee ps de posits that are adjacent to the cur rent openpit mine Hundreds of constr uction jobs will be created as w ell as another 450 positions during operations from 2020 to bey ond 2035 T his next phase of the V oisey s Ba y project is expected to g enerate significant additional industrial benefits to the pro vince Beginning in 2016 VNL ac hiev ed a major milestone at Long Harbour b y operating solely on highg rade nic k el concentrate from V oisey s Ba y Constr uction of additional circuits required to enable processing of V oisey s Ba y middling g rade concen trate is contin uing and is expected to be completed this year Once fully operational the Long Harbour Plant will process all nic k el concentrates produced at V oisey s Ba y and produce fin ished nic k el copper and cobalt Iron Ore Company of Canada T he Iron Ore Company of Canada IOC has been producing iron ore at the Carol Lak e project in Labrador W est since the 1960s Production capacity at the site is 233 million tonnes of concentrate of whic h 125 million tonnes can be pelletized Labrador Iron Ore R o yalty Cor poration LIOR C o wns 151 of IOC and re por ted IOC concentrate production for the first half of 2016 as 9 million tonnes Despite contin uing with the impro v ements from last year and the first quar ter production for the quar ter w as lo w er than expected IOC plans to produce 10 million tonnes of pellets and 10 million tonnes of concen trate IOC expects to be able to sell all the pellets and concen trate it can produce IOC has stated that it m ust demonstrate consistent and reliable production meeting targ ets before taking its new W abush 3 project to the Rio Tinto board for capital funding IOC had record production in A ugust and Se ptember but will fall shor t of its 2016 production targ et T his new open pit w ould allo w f lexibility in pro viding iron ore feed to its existing concentra tor to ac hiev e and maintain production at the mill s rated capacity and pro vide a new source of iron ore to extend the operating life of its Carol Project T ata Steel Minerals Canada Ltd T ata Steel Minerals Canada Limited TSMC is a joint v enture betw een T ata Steel of India and New Millennium Iron Cor poration NML TSMC operates a highg rade iron ore project in the Menihek area of nor thw ester n Labrador T h e project includes mining cr ushing w ashing screening and dr y ing ore to produce 42 million tonnes per year of sinter fines and pellet feed TSMC completed its first shipment of direct shipping ore DSO to Europe from the project in Se ptember 2013 Cur rent mining tak es place in Labrador but in future years plant feed will come from both Labrador and Quebec After a temporar y winter scale do wn of operations in 2016 that included stabilization of the plant whic h remains in care and maintenance TSMC will be operating on a seasonal basis in the near ter m T his action w as in response to c hallenging conditions in the steel and iron ore mark ets and will be review ed on an ong oing basis TSMC forecasted 150 person years of emplo yment during 2016 at the mining operation NML announced that TSMC has secured financing of 175 million in suppor t of its directshipping ore project T his combined with rail and por t impro v ements in the Se ptIles area at P ointe Noire will benefit the TSMC operation TSMC is w orking to w ard dev eloping the Ho wse iron ore de posit T his w as originally a joint v enture betw een TSMC and Labrador Iron Mine LIM but on April 2 2015 TSMC acquired LIM s remaining interest in the project T his DSO de posit will be a lo w capital mining v enture and will use TSMC s adjacent infrastr ucture Openpit drill and blast min Mining in Newfoundland and Labrador Mining acti vity at IOC s Luce Pit T ata Steel Ki vi vic 2