History
The IOC's predecessor existed from its birth on the Newfoundland statute book of 1938 as Labrador Mining and Exploration Limited (LM&E), which company was granted extensive exploration and mining rights on the mainland. LM&E discovered the iron ore that now constitutes the mine operated by IOC. LM&E received grants of leases and licences from the dominion under the Statutory Agreement. It also received a grant of surface rights to establish the town site that became Labrador City. LM&E in turn sublet the leasehold to the IOC and IOC built the infrastructure, the mine, the railway and the port. The LM&E has taken various forms over the years and since 2010 exists as the Labrador Iron Ore Royalty Corporation (LIORC). No matter the particular corporate form, its treasury receives a 7% gross overriding royalty on iron ore products produced and sold by IOC.[5]
The IOC was founded in 1949 by a partnership of Canadian and American firms, most notably Hollinger, Labrador Mining, National Republic, Armco, Youngstown and Wheeling-Pittsburg, and the M.A. Hanna Company.
From 1977 to 1983 the president of the company was Brian Mulroney, who later served as the 18th Prime Minister of Canada from 1984 to 1993.
Rio Tinto PLC acquired the IOC in August 2000,[6] as part of their successful hostile takeover of Australian company North Ltd. In December 2000 they wanted to buy more of the company.[7] The bid failed in April 2001 when only 20% of the LIORIF shares were tendered.[8]
In August 2007 $60 million was invested to increase production at Labrador City, from 17MT to 18.4MT in mid-2008. At the time Sam Walsh was in the driver's seat at Rio Tinto Iron Ore.[6]
On 6 May 2010 Rio Tinto PLC announced that it was investing US$235 million in an expansion program at the IOC.[9]
In June 2010 the Labrador Iron Ore Royalty Income Fund was transformed into the LIORC in a transaction valued at $248 million.[10]
In June 2013 Rio tried to sell its part because it had too much debt. It valued the share at somewhere in excess of $3.5bn.[11]
By 2013 Mitsubishi and Rio Tinto corporations dominated the shareholdings, alongside junior partner LIORC. Rio Tinto is the majority shareholder in the venture, with 58.7% of the joint stock as of October 2013.[1] Mitsubishi controlled 26.2% of the investment as of March 2013.[2] As of March 2023 the consortium remained unchanged.[12][13] LIORC represents Canadian interests and trades on the TSX. It "holds a 15.10% equity interest in IOC directly and through its wholly-owned subsidiary, Hollinger-Hanna Limited, and receives a 7% gross overriding royalty and a 10 cent per tonne commission on all iron ore products produced, sold and shipped by IOC."[14][15]
In 2016 the IOC lost a court case against a band of Innu. The court continued the $900 million suit that IOC had attempted to thwart.[16]
In 2017 the IOC had revenues of $1.9 billion.
In August 2018 there were rumours afloat that Rio wanted to list its shares of IOC on the Toronto Stock Exchange; this came shortly after a two-month strike at the Labrador mine.[17] In August 2021 Mike McCann was appointed President of the company.[18][19]
As of March 2023 the operations consisted a mine in Labrador, a processing plant in Labrador City, a combined furnace[20] stockpile and port installation in Sept-Iles, Quebec, and a 418 kilometre railway that joins these two last parts.[12]
