Alderon Iron Ore Corp. has announced that Nalcor Energy will supply power to its Kami Project in Labrador.
Wednesday morning, the company released the results of its feasibility study for the iron ore mine project, including the total cost of $1.27 billion to get the project up and running. The project will produce eight million tonnes of iron ore concentrate a year at 65.2 per cent iron . The estimated life of the mine is 30 years.
The deal with Nalcor is subject to certain conditions, including the completion of necessary engineering and design work for power infrastructure, the conclusion of a comprehensive power purchase agreement, and the receipt of any required environmental or other regulatory approvals for power infrastructure.
“We are very pleased that Nalcor has confirmed that power will be available for the Kami Project,” says Tayfun Eldem, president and CEO of Alderon. “This will fulfill a major infrastructure requirement for the Kami Project and will allow us to continue to move forward on our development timeline. We are now engaged with Nalcor in a process that will lead to the completion of detailed engineering and conclusion of a mutually acceptable power purchase agreement. This is very positive news for Labrador west, as this project will bring tremendous benefits to the region. We are pleased that Nalcor recognizes the importance of supplying power for industrial development right here in Labrador.”
Alderon presented Nalcor with its anticipated annual requirements of between 60MW and 70MW of power for its operations, assuming that the Kami Project reaches commercial production.
Construction of the Kami project will start by year end.