Company looking to hire financial advisor; working on financing to the tune of $1 billion
LABRADOR WEST, N.L. — Alderon Iron Ore Corp. continues to make every effort to move forward with its project in Labrador West.
The Kami mine was announced about six years ago but was cancelled when iron ore prices plummeted. It was about the same time Wabush Mines closed and IOC shelved the Wabush three project.
Times have improved for the industry, and last fall the Moss pit (originally called Wabush 3) was opened. Tacora is in the process of opening Wabush, and hopes to start hiring workers in the near future with the hope of producing by this summer.
In the meantime, Alderon continues to work on its plan. Iron ore prices have improved in recent months, and that has been a big boost to the iron ore industry, especially in Labrador West.
Recently the company entered a partnership with Schneider Electric. They provide technology that assists with automation and equipment that will make it easier to get their product to market. Alderon signed a memorandum of understanding with the company that will help raise the funds for that part of the project.
“That agreement means we can access funding from the export credit agency,” CEO and president of Alderon, Tayfun Eldem told The Aurora. “We expect to hire a financial advisor by the end of this week.”
Eldem says the advisor will help the company acquire the financing that’s needed to get the company started. Last year Eldem spoke to the Labrador West Chamber of Commerce, and told them they needed about $1 billion to make the project come to life.
“That’s still our objective,” he noted, but says as markets rebound and the price of ore rises, they are more optimistic about the project.
The province recently stated the mining sector in Newfoundland and Labrador is experiencing strong growth, and there is a renewed interest in exploration as well as development. Much of that has been attributed to the mining activity in Labrador, and Labrador West’s iron ore industry.
Meanwhile in Labrador West, there is renewed enthusiasm for the Industry. IOC’s pit expansion, the reopening of Tacora, Bloom Lake in nearby Quebec, Alderon’s Kami project, and activity in the Schefferville area is news that is being welcomed by local contracting companies and service industry providers.
The Aurora will continue to follow the progress of mining projects in Labrador West.