"We also operate a 568km railway. We're doing a lot of work on it, enhancing the track replacement programme with a planned approach of so many kilometres a year that stretches years into the future. We're also working on the rail-wheel interface, which affects the life of the rails and is especially important when very low temperatures make steel rails brittle. A single problem on a single wheel can cause a major derailment."

Perhaps the biggest material change will be the delivery of seven new AC railway locomotives in early 2006. They'll mean reduced maintenance and better fuel consumption, but the fact that they provide more horsepower per unit will mean that IOC will be able to lengthen its trains from 210 to 240 cars along a route that has severe gradients and sharp curves.

Mike continues: "At our port at Sept-Îles, where the equipment dates from the 1950s and 70s, we've been refurbishing the electrical control systems, and work there has progressed substantially. On the two product handling lines we are modernizing the reclaimers, and the last will be completed in 2006.

"At the same time, IOC undertook to improve its costs, setting up a programme we called 'Renewal'. We brought in consultants to help us identify opportunities to improve our overall efficiency and lower costs. That process is still going on and gaining traction, and I guess we're about halfway to meeting our cost reduction objective.

"Another big challenge is change management, so that we can sustain the business and make further cost savings and efficiency improvements. In 2004 we negotiated a new labour agreement with our union.

"Prior to the agreement we had over 60 job descriptions at IOC. Now we have just nine. That gives everyone greater job flexibility, with roles assigned on the basis of skills and capabilities, not just seniority. It's resulted in huge improvements in jobs across the company.