Alderon Iron Ore Corp gets the Green Light for Kami Project
The provincial government of Newfoundland and Labrador has reached a benefits agreement with Alderon Iron Ore Corp. to develop a new iron ore mine.
The Kami project, which is located near Wabush and Labrador City, is owned 75 percent by Alderon and 25 percent by Hebei Iron and steel Group. At full capacity the mine will produce approximately eight million tons per year with an estimated mine life of 30 years.
According to Tayfun Eldem, Alderon President and CEO, finalizing the benefits agreement and receiving surface and mining leases mean "all the conditions of release from both the Federal and Provincial environmental assessment processes. Once the financing plan is complete, we will be ready to commence construction."
The capital cost of development is estimated at $1.27 billion.
"In addition to approximately $3.9 billion in tax revenues, this mine will add an impressive $25.4 billion to the Province’s GDP. With a total direct investment of $11.9 billion, the Kami Project will also create approximately 800 construction and 500 full-time production jobs," according to Alderon.
The company is expected to employ roughly 800 people during construction of the mine, and other 400 when it’s in operations. Alderon has also agreed to hire apprentices in skilled trades to work on the development of the project.
"Initiatives include training and education, a recruitment and selection process that emphasizes fairness, equity and equal opportunity, steps to encourage employee retention and targets for women's employment," he said.
Eldem said construction will begin this summer based on securing full funding.
