Champion Iron temporarily closes Quebec mine as forest fires continue
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The news: Champion Iron has temporarily closed its Bloom Lake mine in Quebec, Canada in response to forest fires in the area.
The context: The blaze was considered controlled earlier in the week until a new wave forced the evacuation of nearly 10,000 residents from nearby Labrador City on Friday.
The closure is another hit to the miner after its earnings have been hit by lower iron ore prices. It also noted that it was on track to produce "one of the highest purity iron ores in the world", enabling the company to play a greater role in the green steel supply chain.
The Bloom Lake mine's supply has historically been shipped to East Asia, the Middle East, and Europe. China’s steel manufacturers lead global demand for iron ore, with the country’s industry contributing over half of global steel supply and nearly tenfold the next largest producer, India. However, China's iron demand has continued to fall due to a protracted property crisis along with slowing infrastructure demand after indebted local governments were ordered to halt certain projects.
Champion Iron's ASX price has steadily climbed in recent months following the Canadian government's classification of high-percentage iron as a critical mineral.
Its share price last closed at $6.49 and over the last 12 months has increased 12.09%.
The sources: ASX announcement, CNN
