MONTRÉAL, Feb. 5, 2024
/CNW/ - (Sydney, February 6, 2024) - Champion Iron Limited (TSX:
CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the
"Company") announces that its unionized employees represented
by the Syndicat des Métallos (the "Métallos"), representing
approximately 63% of the workforce at the Bloom Lake mine ("Bloom
Lake"), voted against the Company's proposed terms towards a new
collective bargaining agreement ("CBA") and voted in favor of a
strike action mandate (the "Strike Mandate"). The Strike Mandate
enables the Métallos to initiate at any time a strike if the
ongoing discussions do not conclude in a new CBA. While
negotiations continued over the last few days, including a
mediation process, the parties did not come to an agreement in
principle for a new CBA. The Company remains collaborative
with the Métallos to find common grounds for a new CBA. The Strike
Mandate and ongoing discussions do not impact operations at Bloom
Lake at this time.
The Company believes to have proposed fair and equitable terms
for a new CBA. The Company's offer carefully balances the needs of
its employees to protect their individual buying power, considering
inflationary pressures, and reflects industry competitive dynamics.
Benefiting from significant liquidity and stockpiled iron ore
concentrate, the Company is well positioned to mitigate the impacts
of a potential strike on its operations and financial position.
Champion's CEO, Mr. David
Cataford said "We are disappointed that we could not reach
an agreement with the union following recent discussions and a
mediation process. We always have the well-being of our employees
at heart, whether unionized or not. As such, we aim to create the
best possible work conditions to retain, attract and develop the
best talent, while ensuring our Company can navigate volatile
economic environments. Our latest global offer submitted to the
Métallos meets this objective in every aspect. We have shown a
great deal of transparency with the Métallos since the beginning of
negotiations and we are confident that its members recognize our
significant efforts in offering a healthy work environment and
competitive terms towards a new CBA."
About Champion Iron Limited
Champion, through its wholly-owned subsidiary Quebec Iron Ore
Inc., owns and operates the Bloom Lake Mining Complex, located on
the south end of the Labrador Trough, approximately 13 km north of
Fermont, Québec. Bloom Lake is an
open-pit operation with two concentrators that primarily source
energy from renewable hydroelectric power. The two concentrators
have a combined nameplate capacity of 15 Mtpa and produce low
contaminant high-grade 66.2% Fe iron ore concentrate with a proven
ability to produce a 67.5% Fe direct reduction quality iron ore
concentrate. Benefiting from one of the highest purity resources
globally, the Company is investing to upgrade half of the Bloom
Lake mine capacity to a direct reduction quality pellet feed iron
ore with up to 69% Fe. Bloom Lake's high-grade and low contaminant
iron ore products have attracted a premium to the Platts IODEX 62%
Fe iron ore benchmark. The Company ships iron ore concentrate from
Bloom Lake by rail, to a ship loading port in Sept-Îles, Québec,
and has sold its iron ore concentrate to customers globally,
including in China, Japan, the Middle
East, Europe, South Korea, India and Canada. In addition to Bloom Lake, Champion
owns a portfolio of exploration and development projects in the
Labrador Trough, including the Kamistiatusset Project, located a
few kilometres south-east of Bloom Lake, and the Cluster II
portfolio of properties, located within 60 km south of Bloom
Lake.
Cautionary Note Regarding Forward-Looking Statements
Although Champion believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such forward-looking statements involve known and unknown risks,
uncertainties and other factors, most of which are beyond the
control of the Company, which may cause the Company's actual
results, performance or achievements to differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause the actual results to differ materially
from those expressed in forward-looking statements include, without
limitation, the factors discussed in the section entitled "Risk
Factors" of the Company's 2023 Annual Report, Annual Information
Form and MD&A for the financial year ended March 31, 2023, which are available on SEDAR+
at www.sedarplus.ca, the ASX at www.asx.com.au and
the Company's website at www.championiron.com. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such forward-looking information. Accordingly,
readers should not place undue reliance on forward-looking
information.
For additional information on Champion Iron Limited, please
visit our website at: www.championiron.com.
This press release has been authorized for release to the market
by the CEO of Champion Iron Limited, David
Cataford.
SOURCE Champion Iron Limited