TORONTO (miningweekly.com) – Global engineering and construction group SNC-Lavalin has been awarded a contract to compile a feasibility study for Lac Otelnuk Mining, a joint venture between Adriana Resources and Wisco International Resources Development & Investment on the Lac Otelnuk iron-ore project, located in the Labrador Trough belt.

The feasibility study would be based on an openpit mine producing 180-million to 200-million tonnes a year of iron-ore and a process plant designed to produce 50-million tonnes a year of iron-ore concentrate as a final product.

The project is located about 170 km north of the town of Schefferville, in north-eastern Quebec, and in a 1 600 km long and 160 km wide geologic belt straddling Quebec and Labrador, sprinkled with numerous high-grade iron-ore projects and operations.

SNC-Lavalin said its scope of work included exploring options for the openpit mine, crushing and conveying systems, the process plant, infrastructure for the mine and process plant, tailings storage and mine reclamation and closure. SNC-Lavalin would also study options for transporting the iron-ore concentrate to port facilities located in the Sept-Iles region.

The study was valued at about $13-million in services.

"SNC-Lavalin has a long-standing presence in the Quebec mining industry and world-class iron-ore expertise. We are proud to use that know-how and experience to support Lac Otelnuk Mining in its goal of developing one of the most sustainable mining operations under the Le Nord pour Tous (The North for All) development plan,” SNC-Lavalin group executive VP Dale Clarke said.

The study had started at SNC-Lavalin's offices in Montreal, and was expected to be complete by September 2014.

The Labrador Trough is also where, among others, Wabush Mines, Rio Tinto’s Iron Ore Company of Canada (IOC), Labrador Iron Mines, Alderon Iron Ore and Tata Steel Minerals Canada had either projects or operations.

ENVIRONMENTAL ASSESSMENT

Alderon on Wednesday provided an update on the Kami iron-ore project, saying the dual federal and provincial environmental assessment was progressing, after the Newfoundland & Labrador Environment and Conservation Department had issued a final Ministerial decision on the environmental-impact statement on September 30.

The Minister had determined that no further work was required under the provincial environmental assessment process. The Minister would now make a recommendation to the provincial Cabinet for consideration.

Meanwhile, the federal government environmental assessment process had also advanced to the final stages. Under the terms of the federal project agreement timelines for the Kami project, the federal government would release the comprehensive study report for a 30-day public review period before the end of October.

The federal Environment Minister is required to post the final federal environmental-assessment decision for the project by no later than 12 weeks from the end of the review period.

"While it awaits the release of the Kami project from the provincial and federal environmental assessment process, Alderon has been advancing its project financing efforts, detailed engineering, procurement of long-lead items and infrastructure agreements for rail and power.

“As these significant milestones in the development of the Kami project materialise, they will further strengthen our potential to finance the remainder of the capital for the development of the Kami project through global financial markets,” Alderon president and CEO Tayfun Eldem said.

Alderon said it had received bids from various suppliers for the primary crusher station, which represents the initial phase of the processing equipment in the proposed flow sheet as described in its independent technical reports.

Bids had also been received for the Pointe-Noire terminal ore car dumper and the stacker/reclaimer. Placing those orders was part of Alderon's strategy to source the long-lead mining, processing and materials-handling equipment in sufficient time to begin production by the end of 2015.

The other key processing equipment that would be ordered in the next few months included pan and drum filters, thickener, apron feeders, pumps, spirals, magnetic separators and screens.

The procurement schedule for long-lead items was being managed by the engineering, procurement and construction management firm WorleyParsons.