The Kami Mine Limited Partnership (Kami LP) has entered into a memorandum of understanding (MoU) with digital energy management and automation firm Schneider Electric to transform the Kami mine, in western Labrador, into a fully digital mine.
Alderon Iron Ore president and CEO Tayfum Eldem said in a statement on Friday that it hoped the partnership with Schneider would reduce the capital spending and equipment cost targets from the September 2018 updated feasibility study and that it would accelerate the project schedule.
The study estimated capital expenditure of $980-million, for which Alderon is still arranging financing.
Schneider stated said that the solutions proposed for the Kami project would help create a digitally integrated mine by implementing Schneider Electric's EcoStruxure systems at every level. These connected Internet of Things solutions, such as plant process performance, power, and maintenance adviser systems, can assist in achieving a safe, efficient and reliable operation through ongoing process monitoring and proactive system troubleshooting.
Kami LP is 75%-owned by Alderon and 25% by HBIS Group. The proposed mine is located in the Labrador Trough and is surrounded by three producing iron-ore mines. 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%.