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North American Gem Inc. recently obtained an agreement to enter into an open-ended lease with Safeco Inc. to operate a CSX Transportation-served coal preparation and rail loading facility in Knox County, Ky.

Known as the Cobra Facility, the 19-acre Safeco operation can accommodate the loading of 110-car unit trains. North American Gem plans to upgrade the facility’s rail spur to boost operations.

Meanwhile, Labrador Iron Mines Holdings Ltd. reached an agreement with New Millennium Capital Corp. to reconstruct a 2.5-mile rail spur from Tshiuetin Rail Transportation Inc.’s mainline near Schefferville, Quebec, to Labrador Iron Mines’ planned processing center at Silver Yards. Labrador Iron Mines also will build a 13-mile line to New Millennium’s planned processing center at the Timmins mining area.

The spur extension and new line will be built along an existing 16-mile rail bed. The spur previously was used to move iron ore. Rails and ties were removed when mining operations ceased in 1982.

Tshiuetin Rail Transportation owns and operates a 129-mile line between Schefferville and Ross Bay Junction, where it connects to Iron Ore Co. of Canada's Quebec, North Shore and Labrador Railroad.