Company says agreement in place for Kami power purchase
A recent meeting between representatives for Alderon Iron Ore and provincial Natural Resources Minister Derrick Dalley has the company once again expressing confidence it will have all the power it needs, when it needs it, for its Kami iron ore project.
In a statement, the company said Newfoundland and Labrador Hydro confirmed in January that Alderon will have the power it needs for its budding iron ore mining operation.
Yet time has passed and questions have mounted around the timeline for building required infrastructure for the power — specifically a new hydro line to the Labrador West region. The mayors of Labrador City and Wabush, Karen Oldford and Colin Vardy, have been amongst those asking questions on the status of the line, as reported last week.
However, at the time the town mayors were holding a news conference, calling for immediately and public approval of the project, the company had met with the provincial government on the issue.
“This meeting with the Minister of Natural Resources did take place on Wednesday and as with all previous exchanges, it was very productive,” said Tayfun Eldem, president and CEO of Alderon, in a statement issued Friday.
“We were informed of the status of power and various other files under review by the provincial government. Following our discussions with the minister and his officials, we are confident that these matters are being pursued diligently and expeditiously,” he said.
“Following completion of three stages of engineering, (Hydro) and Alderon have advanced their commercial discussions and a power purchase agreement is ready for execution pending the decision from the provincial government to expand the transmission capacity from Churchill Falls to Labrador West,” the statement noted.
Approval from government for construction of the power line is critical to the Kami project financing. In addition to the power line, the province also still holds the project under environmental assessment.
The company has finished all of the work it was required to do as part of that assessment process.
Natural Resources Minister Derrick Dalley, through a statement last week, said he anticipates a decision in early 2014 on whether or not the project will be released and, if so, on what conditions.
The company is expecting to hear something on the provincial-federal review within the first quarter.