KfW Ipex-Bank is financing the Iron Ore Company of Canada (IOC) with a US$100mn loan to supply to European markets.
The IOC is one of Canada’s leading producers of iron ore concentrate and pellets: essential materials in the production of steel products. The financing, for key replacement investments, will ensure the long-term supply of raw materials to its customers in Germany and Europe.
Commenting on the deal, KfW Ipex management board member Markus Scheer says: “This transaction serves to secure the supply of raw materials in Germany and Europe, fulfilling one of the bank’s core tasks.”
“With our financing we are helping to ensure the continuation of the supply flow for the future.”
The IOC currently has the capacity to mine around 43 million tonnes (mtpa) of crude per year. In 2014 it aims to supply more than seven million tonnes of pellets and iron ore concentrate to German and European customers. It is currently expanding its capacity to produce iron ore concentrate and plans to increase its crude ore mining to 50 mtpa.