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Alderon clinches power purchase agreement for Kami project

Alderon clinches power purchase agreement for Kami project

Photo by Bloomberg

26th February 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – TSX- and NYSE-listed Alderon Iron Ore on Tuesday said it had satisfied the remaining conditions to confirm electricity supply for the Kami iron-ore project, after its affiliate, The Kami Mine Limited Partnership, had entered into a power purchase agreement and security agreement with Newfoundland and Labrador Hydro (NLH), a subsidiary of Nalcor Energy.

The Labrador Trough-focused project developer had also received a $22-million loan from Liberty Metals & Mining Holdings to fund the first security deposit required under the security agreement.

"The power purchase agreement was a key infrastructure requirement and is critical in securing the previously announced debt financing and we are very pleased to have finalised it," Alderon president and CEO Tayfun Eldem said.

Last week, the Canadian federal government had completed and approved the environmental assessment for the $1.3-billion Kami iron-ore project, in western Labrador.

Canadian Environment Minister Leona Aglukkaq said in her notice of environmental assessment decision statement that the project posed no significant threat to the environment.

The decision statement sets out the Minister's conclusion that the Kami project was "not likely to cause significant adverse environmental effects".

As a result, the Kami project could now proceed subject to the terms and conditions included in any federal permits or authorisations.

Edited by Creamer Media Reporter

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