Nalcor to provide energy for Alderon’s Kami project

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Alderon Iron Ore Corp. has announced that Nalcor Energy will supply power to its Kami Project in Labrador.

Wednesday morning, the company released the results of its feasibility study for the iron ore mine project, including the total cost of $1.27 billion to get the project up and running. The project will produce eight million tonnes of iron ore concentrate a year at 65.2 per cent iron . The estimated life of the mine is 30 years.

The deal with Nalcor is subject to certain conditions, including the completion of necessary engineering and design work for power infrastructure, the conclusion of a comprehensive power purchase agreement, and the receipt of any required environmental or other regulatory approvals for power infrastructure.

“We are very pleased that Nalcor has confirmed that power will be available for the Kami Project,” says Tayfun Eldem, president and CEO of Alderon. “This will fulfill a major infrastructure requirement for the Kami Project and will allow us to continue to move forward on our development timeline. We are now engaged with Nalcor in a process that will lead to the completion of detailed engineering and conclusion of a mutually acceptable power purchase agreement. This is very positive news for Labrador west, as this project will bring tremendous benefits to the region. We are pleased that Nalcor recognizes the importance of supplying power for industrial development right here in Labrador.”

 Alderon presented Nalcor with its anticipated annual requirements of between 60MW and 70MW of power for its operations, assuming that the Kami Project reaches commercial production.

Construction of the Kami project will start by year end. 

Organizations: Alderon Iron Ore, Nalcor Energy

Geographic location: Labrador West

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  • Winston Adams
    January 10, 2013 - 10:43

    My figures above should read "currently 11.17 plus 4 percent HST is 11.61. New rate of 12.05 plus 4 percent HST is 12.53." .... So the rate jump is 8.0 percent. Why is the media promoting the spin of 7.2 percent? Of course , one must read the actual application to see the figures, and it is much easier to take the spin as gospel. The actual proposed increase is 11 percent higher than suggested..... as Anderson Cooper says... just keeping them honest.

  • Foghorn Leghorn
    January 10, 2013 - 10:28

    @ Psycho - Have no fear investigative journalism is all but dead in this province. Ask anybody at the CBC when they bore the brunt of Danny Williams when they were making inquiries into his personal life when his marriage was going up in smoke. He all but banished the CBC and would only do media interviews with NTV. Then came the infamous Bill 29 the icing on the cake so to speak. If we had more of an American style of journalism, rest assured no stone would be left unturned.

  • david
    January 10, 2013 - 10:01

    At least Hitler had some interesting economic ideas.....all we get here is the arrogant, dangerous, insane part of the package. Metaphorically, though, it will end the exact same way: we're committing suicide, too.

  • Little Man Dan
    January 10, 2013 - 09:27

    Go Danny go; here Johnny...here Johnny, come up on me you lapdog lackie and boost my ego.

  • Winston Adams
    January 10, 2013 - 09:02

    Increased rates for households on the island just help Nalcor get where they want to go. The rate increase is promoted to be on average 6 percent ,but households get screwed and business gets a break. Residential rate is stated in the media to go up 7.2 percent. But..... that's not realy correct. Residential is comprised of a meter charge of almost 16.00 plus energy charge of currently 11.17 cents for energy. The energy charge is jumping to 12.05 cents . So that is 7.9 percent jump instead of 7.2. And that is without adding Hst . Currently 11.61 plus hst at 4 percent is 11.61. New rate of 12.04 plus 4 percent HST is 12.53. So with HST added it gives 8.0 percent increase on energy charge rates, not 7.2 percent. Nfld POwer is looking to increase their return, to help increase profit, seeking a 16 percent jump from current allowed return. They have filed expert evidence from USA firms to support this, like over 700 pages with formulas that Einstein would have trouble with.... But don't worry . JOhnson is fighting on our behalf. Where is Mary Walsh, the princess Warrior?

  • Corporate Psycho
    January 10, 2013 - 08:36

    So now we are subsizing power for Danny. The rich get richer. Any reporters doing any digging into Liannu and Pennecon??