Name of the Project
Kamistiatusset (Kami) iron-ore project.

Location
Western Labrador, Canada.

Client
Kami Mine Limited Partnership, a joint venture between Alderon Iron Ore (75%) and HBIS (25%).

Project Description
The updated preliminary economic assessment (PEA) on the Kami project is an update to a rescoped PEA on the project that was issued in March. 

The March PEA incorporated the use of the depleted pit at the Wabush Scully mine and certain related infrastructure. The updated PEA removes the components related to the Wabush Scully mine and reverts to a standalone tailings management facility that will be constructed at the Kami project.

The updated PEA shows that, even without the use of the Wabush Scully mine, the Kami project maintains robust economics, based on a production rate of 7.8-million tonnes a year of iron-ore concentrate at a grade of 65.2% over a 24-year mine life.

The updated PEA is based on only the measured and indicated mineral resources within the Rose deposit, which comprise the Rose Central and the Rose North deposits. The mineral resources within the Mills Lake deposit and the inferred mineral resources within the Rose deposit have not been considered in the economic analysis of the updated PEA.

The mineral resources included in the updated PEA mine plan for the Rose deposit, which consider the pit design parameters and include mining dilution and losses, total 536.8-million tonnes grading 28.6% total iron.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.78-billion and an internal rate of return of 25.7%, with a payback of 3.7 years.

Value
The capital cost of the project has been estimated at $999.4-million.

Duration
The project will take 29 months to construct.

Latest Developments
Before construction starts, Alderon plans to complete a feasibility study for the updated project; reassemble the owner’s team; award an engineering, procurement and construction management or engineering, procurement and construction contract; resume detailed engineering; and have construction financing in place. 

This process could take several months to complete once the process has started.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Alderon Iron Ore, tel +1 604 681 8030 or email info@alderonironore.com.