Pen has been put to paper on an agreement stipulating direct benefits to be seen by Newfoundlanders and Labradorians with the start-up of a new mine in Labrador West.
Premier Tom Marshall (centre) prepares to sign a benefits agreement, alongside Natural Resources Minister Derrick Dalley (left) and Alderon president and CEO Tayfun Eldem. — Photo by Ashley Fitzpatrick
The Kami iron ore mine is being developed under a partnership of Alderon Iron Ore and China’s Hebei Iron and Steel. It is expected to contribute $18 billion to the provincial GDP during a 30-year life, providing the province $2.6 billion in taxes and royalties.
The new benefits agreement looks beyond royalty and taxation numbers, addressing topics including hiring and procurement practices and how the development can help expand the local skilled trades workforce. A signing ceremony was held Tuesday morning at Confederation Building in St. John’s.
The standing deal includes requirements for local-first hiring, the provision of a 40-space child-care centre in Labrador West and a $7-million education and training fund to be provided as the mine goes into production.
There are also landmark requirements for skilled trades apprentices, with the company stating a minimum of 15 per cent of the workforce during construction, reaching 800 at peak, will be at the apprentice level.
The post-construction workforce will be made up of 25 per cent apprentices, out of a total workforce of about 400 people.
“The apprenticeship piece is important here, because we have a college here that’s put out people in various trades and it’s important they have an opportunity to get their career started,” Wabush Mayor Colin Vardy said after details emerged.
Wabush was hit hard in February with the idling of Cliffs Natural Resources’ Scully Mine, leaving the prospect of Alderon’s new Kami mine as a light on the horizon.
In addition to job opportunities, Vardy said, the town has a special tax agreement with the Kami partnership, for a grant in lieu of taxes and town permits. He would not say how much the new mine would be worth to the town.
The leader of the region’s other major municipality, Labrador City Mayor Karen Oldford, was not reached as of press time.
For the rest of this article, click here: http://www.thetelegram.com/Business/2014-05-27/article-3740615/Kami-iron-ore-mine-to-tap-apprentices/1