Anglesey Mining said its subsidiary, Labrador Iron Mines, has entered into an agreement with the Naskapi Nation of Kawawachikamach for the development and operation of its Schefferville iron ore project in Western Labrador, Canada.

Under the Impact Benefits Agreement, Labrador will ensure the environmentally responsible development of the mine and will also mitigate any environmental, cultural, economic and spiritual concerns of the Naskapi Nation.

Labrador will also employ Naskapi members in the project workforce and provide support for education and opportunities.

In exchange, the Naskapi Nation has agreed to respect the rights, licences and permits.

Commercial production of iron ore will begin in the spring of 2011.