Alderon, the Vancouver based Mining Corporation with operations in Labrador Trough, and Kami Mine Limited Partnership have signed a joint memorandum of understanding with Schneider Electric for development funding as well as equipment acquisition for the Kami Iron Ore Project.
Alderon CEO Tayfun Eldem said that Schneider Electric was chosen owing to wide range of product and service offerings in mine digitization, process control and power and energy management. The Kami LP will harness Schneider’s expertise in providing sustainable energy solutions for optimal usage and energy costs for Kami’s Mining projects.
The collaboration is aimed at reducing equipment cost and capital spending as well as accelerating the project timeline. A September 2018 feasibility study conducted by the Kami estimated an average capital spending of $982.42 million for producing a quantity of 7.84 million tons/y of 65.2% Fe concentrate. It also envisaged a construction period of 26 month.
This timeline is expected to shrink to a reduced time by the use of Schneider’s EcoStruxure platform which will help Alderon in creating fully digital, efficient and advanced mine as a part of the Kami Project. The EcoStruxure platform according to the company is platform which offers world class technological solutions by using advances in IT and unlocks trapped potential in operation by harnessing the latest developments in Internet of Things.
The terms of the MoU also include Schneider Electric assisting The Kami LP in its efforts to raise funds by facilitating discussions and making introductions with potential funding sources including export credit agencies in regions where Schneider has manufacturing units. The Kami LP under the terms of the agreement have been given a free hand in choosing whether to purchase the equipment for its project or lease it.
Alderon has 75% stake in The Kami mine project in Labrador trough while HBIS Group owns about 25% of the project through Kami LP. The Kami Iron ore project is expected to have great impact on Canada’s economics by generating C$76 billion for businesses and workers creating 100,000 jobs. The project will fill government’s coffers by C$5.1 billion in federal and provincial tax revenues. The Mineral resource estimate of the project is around 12 billion tonnes at 29.8% iron and additional 522.6 million tonnes at 29.5% iron. The company has announced partnership with China’s largest steel producer HBIS Group for the Kami Project.
Alderon’s shares have surged by over 6.52% in last 12 months but traded 4% lower on 9 Jan 2018. The company is capitalized at C$33.88 million.