Alderon Iron Ore Corp. (TSX:ADV,NYSEMKT:AXX) announced yesterday that its affiliate, The Kami Mine Limited Partnership, has entered into a Power Purchase Agreement and security agreement with Labrador Hydro. That means the company has now satisfied all the conditions for confirmed power supply at its Kami iron ore project.
As quoted in the press release:
The Kami LP has entered into a Power Purchase Agreement with NLH pursuant to which NLH agrees to sell electrical power and energy to the Kami LP and the Kami LP agrees to purchase the same from NLH in accordance with the terms of the Power Purchase Agreement. The signing of the PowerPurchase Agreement concludes a process that has been ongoing since September 2011 where Alderon and the Kami LP have collaborated with the Province of Newfoundland and Labrador and Nalcor to secure access to power, including paying upfront engineering costs of $4.4 million.
Power will be provided based on a rate schedule in line with the Labrador Industrial Rates Policy published in December 2012.
Tayfun Eldem, Alderon’s president and CEO, commented:
The Power Purchase Agreement was a key infrastructure requirement and is critical in securing the previously announced debt financing and we are very pleased to have finalized it.