Iron ore from Canada: KfW IPEX-Bank finances the supply of raw materials to the German and European economies

Frankfurt, Main (ots) -

- Financing of replacement investments
- Iron Ore Company of Canada supplies high-quality iron ore
concentrate and pellets to Germany and Europe
- Deposit reserves have an extended lifetime, ensuring long-term
supply of raw materials

KfW IPEX-Bank is financing key replacement investments for the
Iron Ore Company of Canada (IOC) with a loan of USD 100 million. The
Canadian iron ore producer supplies German and European companies
with iron ore concentrate and pellets - essential input materials for
various steel products. "With our financing we are helping to ensure
the continuation of the supply flow for the future," says Markus
Scheer, member of the Management Board of KfW IPEX-Bank. "The
transaction serves to secure the supply of raw materials in Germany
and Europe, thus fulfilling one of our core tasks."

IOC has large-scale raw material reserves. During the 2014
financial year, IOC plans to supply more than 7 million tonnes of
pellets and iron ore concentrate to German and European customers.
These quantities are also to be targeted in the coming years. IOC's
raw ore is upgraded to produce high-quality iron ore concentrate and
pellets, which makes the supplies suitable for further processing in
high-technology production areas - the specialty field of many German
and other European companies. Europe is one of the main buyers of
iron ore material.

IOC is one of Canada's leading producers of iron ore concentrate
and pellets, and operates a mine, one concentration plant and a
pelletising plant. The company also maintains the required
infrastructure itself. For example, it ensures continuous transport
flow with a 418-km-long railway line stretching from the deposit in
Newfoundland and Labrador to the deep water port of shipment in
Sept-Îles, Quebec.

IOC currently has capacities for the mining of around 43 million
tonnes (mtpa) crude ore per year. It is expanding its capacities to
boost production of iron ore concentrate, including a planned
increase in crude ore mining to 50 mtpa.

About KfW IPEX-Bank GmbH

Within the KfW Group, KfW IPEX-Bank is responsible for
international project and export finance. Its function of providing
financing to boost the German and European economy is derived from
the legal mandate assigned to KfW. It offers medium- and long-term
financing to support key export industries, to develop economic and
social infrastructure and to fund environmental and climate
protection projects. KfW IPEX-Bank operates as a legally independent
group subsidiary and plays a major role in fulfilling KfW's
promotional mission. It is represented in the most important economic
and financial centres across the globe.

Contact:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: Thomas Krick,
E-Mail: thomas.krick@kfw.de
Tel. 069 7431-8554, Fax: 069 7431-9409, E-Mail:
info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de