LABRADOR – Vancouver-based Alderon Iron Ore Corp. has signed an agreement with Nalcor Energy of St. John's, NL, for stage three engineering and assessment of the proposed power supply for Alderon's Kami (Kamistiatusset) project 10 km from Wabush. This stage of work will cost $3.8 million and take six to eight months as Nalcor completes front end engineering design (FEED).
Commercial discussions will begin during stage three and, once commercial terms are agreed upon, a formal power purchase agreement will be signed by Alderon and Nalcor subject to environmental and regulatory approvals. The commercial terms and rates for power, transmission and other infrastructure costs will be governed by a Labrador Industrial Rates Policy Framework.
Alderon filed the environmental impact study with both the federal and provincial governments in last fall. The preliminary economic assessment based only one the Rose Central deposit estimates a pre-production capital expenditure of $988.9 million. Construction could begin in November 2013 with plant start up expected at the end of October 2015. The plant will have a capacity of 8.9 million tonnes of concentrate per year.
Read the PEA at AlderonIronOre.com.