Labrador Iron Mines Holdings (LIM) has entered into an agreement with the Iron Ore Company of Canada (IOC) for the sale and shipping of its iron ore production in 2011.

Under the terms of the agreement, iron ore from LIM’s James mine in north-west Western Labrador, Canada, will be delivered to Asian markets and resold by IOC’s marketing organisation on the spot market.

The price for iron ore sold to IOC will depend on the actual realised prices to Chinese customers, less an allocation for handling, loading, shipping and sales costs.

The agreement will enable utilisation of Cape Size ocean-going ships for the shipment of LIM’s iron ore.

Currently, iron ore is transported by rail from the Silver Yards rail head, near Schefferville, via the TSH railway and the Quebec North Shore and Labrador railway, to the Port of Sept-Iles, where it is unloaded and stockpiled.