Canadian Mining Journal

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IRON ORE: Alderon counts the billions to come from Kami development



LABRADOR – Alderon Iron Ore Corp. of Vancouver has released a new study outlining the significant economic benefits and positive contributions of the Kami (Kamistiatusset) iron ore project in the Labrador Trough.

The core shack at Alderon’s Kami iron ore project in the Labrador Trough.

The independent economic impact assessment says the project is expected to create more than 100,000 direct, indirect and induced jobs as well as generate $7.6 billion in incomes to workers and businesses, $4.4 billion in total revenue for federal and provincial treasuries and $19.5 billion in GDP over a 26-year period, which includes two years of construction activities.

The report offered these benefits of the Kami project to Newfoundland and Labrador:

  • $2.2 billion in direct, indirect and induced incomes to workers and local businesses;
  • Approximately 32,000 person years of direct, indirect and induced employment during construction and operations;
  • Approximately $1.8 billion in treasury contributions from total direct, indirect and induced taxes; and
  • $14 billion in contribution to the provincial GDP through incomes generation and the production undertaken.

Quebec will also benefit from development of the Kami mine:

  • $3.2 billion in direct, indirect and induced incomes to workers and local businesses;
  • 42,260 person years of direct, indirect and induced employment during construction and operations;
  • $459 million in treasury contributions through direct, indirect and induced taxes; and
  • $3.2 billion contribution to the provincial GDP.

Kami will also have a significant impact for Canada on the federal level:

  • $7.6 billion in direct, indirect and induced incomes to workers and local businesses;
  • 100,405 person years of direct, indirect and induced employment during construction and operations;
  • $4.4 billion in total treasury contributions, including $2.0 billion in total contributions to the federal treasury, through direct, indirect and induced taxes; and
  • $19.5 billion in contribution to the national GDP through income and production.

The economic impact report was based on the assumptions outlined in the February 2017 updated preliminary economic assessment of the Kami project.

Alderon has offered to purchase certain assets related to the Scully iron ore mine previously operated by Wabush Mines. Of particular importance is the permitted tailings management area at Sully. As of writing this item, the deal had not been concluded.

Detailed information about the Kami project is available at www.AlderonIronOre.com.