Alderon Iron Ore, whose
flagship Kami Iron Ore Project (18.8k plus acres) up in Canada holds just over
668M tonnes (29.5% iron) of proven/probable reserves ($3.24B NPV), reported
good news today regarding the portion of the project which falls within the
Municipal Planning Area for Labrador City, as an agreement has been signed with
the city that provides additional revenue for infrastructural demand related to
regional growth from the mine.
Currently slated to begin
commercial production in Q4 next year, running some 8M tonnes of concentrate
(65.2% iron) each year out to global markets via deep sea port access the
company has secured at Port of Sept-Iles (Canada’s most important ore-handling
port), The Kami Project is 75%-owned by AXX through The Kami Mine Limited
Partnership alongside renowned industry steelmaker (44M tons produced in 2011
alone) and the largest steelmaker in China, Hebei Iron & Steel Group (25%
ownership). With over 204k feet of drilling from 2010 to 2012 backing their
plan and such excellent development characteristics (also a 30-year mine life),
as well as ready access to multi-user railway and year-round port facilities,
it is little wonder why the third largest steel producer in the world has taken
such an interest in AXX and their Kami Project.
Mayor of Labrador City,
Karen Oldford, noted how the deal that has been struck mirrors other deals with
mining companies operating in the town (Kami is surrounded by four producing
iron ore mines). This parity creates a level playing field for local operators,
as well as helps to stimulate the community robustly, making it an attractive
place for all to live, work and play with their families. The agreement calls
for the Kami LP to pay a grant based on the project’s operations each year and
will do a great deal to prepare the town for expansion by future employees of
the mine and their families. Given the fact that Kami LP doesn’t have to fork
over any municipal or other taxes for operations located in the Municipal
Planning Area, this agreement firmly reinforces the symbiotic relationship
between Kami LP and Labrador City, being mutually attractive.
President and CEO of AXX,
Tayfun Eldem, greeted conclusion of the agreement warmly, confident in the
knowledge that it will not only ultimately translate into improved conditions
for Kami Mine employees, but that the swift closure on mutually agreeable terms
helps cement the already positive relationship that has been established with
Labrador City. Shrewd moves here by AXX ahead of the Kami ramp, keeping
relations with the primary towns (Fermont, Labrador City and Wabush) fresh, so
no snags come up as they accelerate into production.
More information on Alderon
Iron Ore can be found at www.AlderonIronOre.com
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