Transmission line agreement boosts Alderon
Alerdon Iron Ore was up 7.94% to $2.04 (TSX:ADV) after confirmation that the Newfoundland government will proceed with the construction of a third transmission line from Churchill Falls to Labrador West to deliver power to the company's Kami project.
The Kami project, which is located near Wabush and Labrador City, was released from Provincial Environmental Assessment last month. Alderon plans on commencing construction later this year. The Kami project is 75% owned by Alderon and 25% by Hebei Iron & Steel Group Co.
The chairman of Alderon touted the economic return from building a mine.
"In addition to approximately $3.9 billion in tax revenues, this mine will add an impressive $25.4 billion to the Province’s GDP. With a total direct investment of $11.9 billion, the Kami Project will also create approximately 800 construction and 500 full-time production jobs.
"This translates to a total of $2.7 billion being paid to Newfoundland and Labrador employees and businesses," said said Mark Morabito, Executive Chairman of the Board of Alderon.