Calgary—New Millennium Iron Corp. has signed an agreement with the Sept-Îles Port Authority for access to a minimum of 15-million metric tons of annual shipping capacity.

New Millennium will invest $38.4-million in the new multi-user deep water dock facility to be located in the Bay of Sept-Îles at Pointe Noire in eastern Quebec, approximately 650-kilometres down river from Quebec City.

The facility in phase one is designed to have a total capacity of 50-million metric tons annually and is expected to cost $220-million, according to New Millennium.

Announced in early 2012, the project is being financed by the Port of Sept-Îles, the Government of Canada and commitments from potential end-users.

Construction is expected to be completed by the end of March 2014.

According to New Millennium, it will invest $38.4-million for its interest, payable in two installments over a one-year period, the first of which was paid at time of signing.

New Millennium will receive favourable shipping rates at the dock facility, the company said in a statement.

The term of the contract is 20 years, with an option to renew for four further five-year terms.