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Print[Ferro-alloys.com] MONTREAL — Alderon Iron Ore Corp. has taken another big step toward realization of its $1.27-billion Kami iron ore project in Quebec.
It has signed a pact with the Towns of Labrador City and nearby Wabush to work together to achieve future economic and social benefits from Kami through consultation and co-operation and joint committees, said Tayfun Eldem, CEO of Alderon. The project will have its own permanent camp for 500 full-time workers at the mine and processing plants.
Kami’s first phase will produce eight million mt annually of high-grade ore averaging 65.2 per cent iron.
Initial measured and indicated reserves stand at 1.1 billion mt. Startup of commercial production is targeted for 2015-2016 and capacity could double later if sufficient global demand develops.
Alderon has closed a $120-million pact with China’s giant Hebei Iron and Steel Group to cover expansion of export shipping facilities at Sept Iles. Hebei is investing a total of almost $200 million in Alderon in return for an equity stake of 19.9 per cent and a 25-per-cent direct interest in a limited partnership that owns Kami. Hebei will take 60 per cent of Kami’s annual production up to a maximum of 4.6 million mt of concentrates annually.
Alderon’s largest shareholder (25 per cent) is Altius Mineral Corp. of St. John’s, which managed Kami’s early exploration and development, and the second biggest is Hebei.
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