LABRADOR – Alderon Iron Ore Corp
. of Vancouver is taking another look at its 75%-owned Kami project 10 km from Wabush. The company hopes to increase the viability of its project by considering the assets of the nearby closed Scully iron ore mine.
Wabush Mines, owner of the closed Scully mine, has been under the Companies’ Creditors Arrangement Act since May 20, 2015. No potential buyers have come forward.
Alderon says using the existing Scully infrastructure – concentrator and other buildings – would reduce the capital and sustaining expenditures involved in the Kami development. The company believes there are no reserves in the Scully pit, and it could reap large savings by storing tailings from a new mine in the old pit.
The port facilities formerly owned by Cliffs Natural Resources
at Sept-Iles have reverted to Quebec ownership. The province has indicated its intention to sell the rail, stockyard and terminal facilities. Alderon said it would seek a partner before bidding on the port. Using existing facilities would be another cost saving.
For more information on the Kami project, visit www.AlderonIronOre.com