VANCOUVER (miningweekly.com) – Iron-ore project developer Alderon Iron Ore has reached an agreement with the Sept-Îles Port Authority to resolve a take-or-pay obligation for reserved annual iron-ore loading capacity.
In lieu of any further take-or-pay obligations, the port authority will hold on to the C$20.46-million security the company provided in 2012.
The port authority notified the Kami Limited Partnership in December 2016 that the new multi-user dock has become operational and that the company’s reserved loading capacity of eight-million a year has become available, and that take-or-pay obligations will come into effect should the project not yet be operational.
In order to finance the estimated C$220-million cost of the new multi-user dock facility, the Port required binding commitments from the potential end-users to provide a portion of the necessary funds.
Kami has previously advanced funds totalling C$20.46-million towards construction of the dock.
Kami LP is the owner of the Kami project and is held 75% by Alderon and 25% by HBIS Group (formerly Hebei Iron & Steel Group).