Alderon offers $1 million for part of Wabush Mines to use as tailings disposal for Kami – by Andrew Topf ( – April 9, 2017)

Part of the Wabush Mines complex in western Labrador may be running once again, albeit in a less glorified form that when it was Canada’s third largest iron ore mine.

Last week Alderon Iron Ore Corp., (TSX:IRON) a Vancouver-based iron ore junior, said it made a binding offer to purchase assets related to the Scully Mine in Wabush, for the purpose of disposing tailings produced from its flagship Kami project, as described in a preliminary economic assessment (PEA).

Part of Wabush Mines, Scully Mine began operating in 1965, with iron concentrate railed to a pelletizing facility in Pointe Noire, Quebec, for shipment to Europe and throughout North America. Before it closed in 2014, a victim of low iron ore prices, Wabush Mines was Canada’s third largest iron ore operation, with an annual capacity of 6 million tonnes. The site since then has been tied up in regulatory proceedings.

Alderon says it has offered to pay the Wabush Mine vendors – a collection of four companies and FTI Consulting – $1 million as well as assuming liabilities and obligations associated with owning and operating the Scully assets.

The company has paid a deposit of $250,000, and the offer is subject to conditions including regulatory approvals. It’s worth mentioning that back in December 2016, Wabush Mines was ordered by a Newfoundland and Labrador provincial court to pay CAD$30,000 for polluting the environment. Wabush Mines didn’t test the mine’s surroundings to determine whether there was any amount of waste being released that could harm rainbow trout.

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