Western Railroad Discussion > Fate of Comstock Mountain Lion Railroad

A question to the TO members out there? Is anyone aware of what is going on with the closure of the Comstock Mountain Lion Railroad in southwestern Utah? This shortline had been operating on the former Union Pacific Iron Springs line off of the Cedar City Branch handling outbound shipments of iron ore. I just heard that it has closed down and is laying off all employees. Has the iron ore operation closed, was a new rail service provider selected, or what? Any information is appreciated? Thanks in advance...

ShastaDaylight

Someone noted a few days ago that the last iron ore train had run...believe someone posted a photo.
Roger Beckett

From what I've heard, the Chinese have put a hold on the contract. No customer, no need to
dig rock. This is most likely temporary, there's many years worth of ore in the ground up
there.

Out



Edited 1 time(s). Last edit at 10/21/14 13:50 by callum_out.

CML Metals Corporation today announced that it has placed its Iron Mountain iron ore mining operations and concentrate plant on care and maintenance effective October 18, 2014. As of this date, the company will suspend mining and concentrate production for an indefinite period. Iron ore export prices have fallen significantly during the past year and as a result it is appropriate for the company to preserve its valuable mineral resources.

My sincerest thanks to all who provided input on this. I'll try to return the favor when opportunities arise in the future. Thanks again!

ShastaDaylight

CML Railroad was a superior railroad. The management and transportation team there was second to none as far as experience and safety record. Unfortunately, the price of iron ore dropped below cost due to a flood of foreign ore onto the market, probable manipulation of those foreign mining companies to drive out competition, high operating costs of the mining contractor, and high transportation costs of UP. PIC Railroad d/b/a CML Railroad will turn over the Comstock Branch to UP in about 60 days. There are about 500 railcars and 4 locomotives that will need to be returned to their owner (HLCX/First Union) shortly. The entire mine side of the operation, minus a skeleton crew of about 8, will take care of the mine and get it into a sell-able condition, then probably be laid-off themselves. If and when the mine starts up under a new owner or when ore prices rise, CML Railroad will reopen.



Edited 1 time(s). Last edit at 10/27/14 05:09 by BurtNorton.