LABRADOR – Alderon Iron Ore Corp. of Vancouver, 75% owner of the Kami iron ore development near Wabush, says that Glencore has signed an off-take agreement for Kami output. When production begins in 2015, Glencore will buy 40% of the annual concentrate production up to a maximum of 3.2 million tonnes of the first 8.0 million tonnes.
The agreement will remain in effect until 48.0 million tonnes of iron ore concentrate have been delivered to Glencore. Reaching that milestone is expected to take 15 years.
Hebei Iron and Steel Group, a 25% partner in the Kami project, previously agreed to purchase 60% of the concentrate.
“With 100% of the initial production from the Kami Project now committed, we believe this enhances Alderon’s ability to obtain the requisite financing required to commence construction of the Kami project,” says Tayfun Eldem, Alderon’s president and CEO.
The Kami project will develop measured and indicated resources of 1.27 billion tonnes at 29.8 % Fe. Within those resources are 668.5 million proven and probable reserve tonnes at 29.5% Fe (15% Fe cut-off). There are also 522.6 million inferred tonnes at 29.5% Fe.
More information is available at AlderonIronOre.com.