Project developer Alderon Iron Ore has signed a memorandum of understanding with Envest, whereby the independent power producer (IPP) will acquire and manage the equipment for the Kami mine, in western Labrador.
The transaction will provide up to $35-million for power infrastructure, which Alderon intends to procure from Schneider Electric.
Envest and Kami will also explore the potential for additional financial solutions from Envest for other equipment to be used at the advanced stage iron-ore project.
“We are thrilled to partner with Envest due to their industry expertise and comprehensive energy solutions for large industrial projects,” said Alderon president and CEO Tayfun Eldem.
Once developed, the Kami mine will operate for 23 years, producing an average of 7.84-million tonnes a year of premium-quality iron-ore concentrate with an iron content of 65.2%.
Alderon is still raising financing for the mine, which will require about $980-million in capital expenditure.