ArcelorMittal Mines Canada announced plans Wednesday for a temporary four-week production stoppage at its Mont-Wright and Port-Cartier iron ore facilities. The company will confirm the duration and exact terms of this temporary production shutdown in early June.

 

As announced, the plan currently calls for Mont-Wright mining extraction and concentration operations to be suspended beginning July 26.

 

The Port-Cartier production operations at the pellet plant will be suspended beginning July 16, while handling and ship loading operations will continue. During this period, rail transportation of iron ore concentrate will cease but certain track maintenance work may be carried out.

 

All staff and union employees are being encouraged to take their annual vacations during the temporary production stoppage.

 

"The economic crisis is having a very hard impact on the world steel industry on which our sector depends," said Serge Miller, vice president and chief operating officer for ArcelorMittal Mines Canada.

 

"Steel companies have considerably reduced their production in reaction to the fall in demand and the rapid rise in inventories. This situation is having a direct impact on our operations and on the level of our own inventories. This temporary production stoppage will allow us to liquidate our inventories and plan for operations resuming based on the day-to-day market conditions which remain extremely volatile," Miller added.

 

ArcelorMittal Mines Canada is one of Canada's leading suppliers of iron ore to steel markets around the world, and generates some 40% of Canada's total iron ore production. As both a mining and primary processing company, it operates extensive facilities on the North Shore of the St. Lawrence Gulf, in Quebec. -Platts