TORONTO (miningweekly.com) – Labrador Trough-focused project developer Alderon Iron Ore on Friday said it had, through The Kami Mine Limited Partnership, entered into a definitive engineering, procurement and construction management (EPCM) agreement with WorleyParsons Canada Services for the development of the Kami iron-ore project.
Under terms of the agreement, WorleyParsons would be responsible for the $92.5-million budget to develop the project.
The partnership had issued a request for expressions of interest in May 2012 to ten engineering and construction firms and, following an extensive evaluation, WorleyParsons was selected based on its health, safety and environment performance; technical and project management expertise; Newfoundland & Labrador experience; global reputation and financial and commercial parameters.
Alderon announced in November 2012 that it had entered into an interim engineering and planning services agreement with WorleyParsons, which allowed Alderon to continue to move ahead with detailed engineering.
The company on Wednesday appointed Brian Penney as COO with immediate effect to drive the Kami project through to production.
Meanwhile, following rail services provider Canadian National Railway’s shelving of the feasibility study for the construction of its proposed C$5-billion rail line and terminal handling facility to serve the Quebec/Labrador iron-ore range in February, which was the result of market realities forcing project developers to defer expected project start-ups, Alderon had indicated that the project would not be affected, owing to it being in the fortunate position of being located close to an existing rail line.
At the end of March, China’s largest steel producer Hebei Iron & Steel Group completed its initial strategic investment in the Kami iron-ore project, C$182.2-million for 25% interest in the Kami Mine Limited Partnership, of which Alderon owns the remaining 75%.
Alderon’s shares traded at C$1.12 apiece on Friday.