Alderon Iron Ore Corp.: Commitment to Construct Transmission Line
Marks a Significant Milestone
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 13, 2014) -
Alderon Iron Ore Corp. (TSX:ADV)(NYSEMKT:AXX) ("Alderon" or the
"Company") is pleased that the Government of Newfoundland and
Labrador has today confirmed that it will proceed with the
construction of a third transmission line from Churchill Falls to
Labrador West (the "New Transmission Line"). Nalcor has previously
confirmed that it would be able to supply power to the Kami Iron
Ore Project ("Kami Project") (see January 10, 2013 news release)
but the New Transmission Line is necessary to ensure there is
enough transmission capacity to deliver the power to the Kami
Project. The confirmation regarding the New Transmission Line paves
the way for the conclusion of the Power Purchase Agreement which is
the remaining condition for a confirmed power supply for the Kami
Project.
"Our government has no higher priority than to fuel the growth
of opportunities and a region that is growing in industrial
activity needs a secure supply of electrical power," said the
Honourable Tom Marshall, Premier of Newfoundland and Labrador in a
press release issued by the Government today. "Nearly three weeks
ago, on the day that I was sworn in as Premier, I said the decision
on a new power line for this region was imminent. Today, I am
announcing that the decision is made and we will be moving forward
with the construction of a third line to supply power from
Churchill Falls to western Labrador."
"Today's announcement reflects our government's support for
responsible natural resource development in the province,
specifically for the mining industry in western Labrador," said the
Honourable Derrick Dalley, Minister of Natural Resources in the
same press release issued by the Government today. "Construction of
the third transmission line will meet power demands for new mining
developments, attract investment into the region, and generate
spin-off employment and business opportunities for the people of
Labrador."
"Access to power is crucial for the Kami Project and we are
proud to be a part of the leading iron ore industry in Labrador,"
said Tayfun Eldem, President and CEO of Alderon. "We are
particularly pleased that the Kami Project will contribute to the
continued economic prosperity of the region. The announcement of a
third transmission line paves the way to execute on our Power
Purchase Agreement, which will greatly assist with the ongoing
process for the previously announced debt financing for the Kami
Project."
"Realization of the Kami Project will demonstrate the ability of
the Provincial Government to work cooperatively with industry to
bring to fruition a significant economic development project for
the people of Newfoundland and Labrador," said Mark Morabito,
Executive Chairman of the Board of Alderon. "We are very
appreciative that Premier Marshall and Minister Dalley have
confirmed the construction of the third transmission line, as the
Kami Project will infuse significant and long-term economic
benefits to the Province. 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."
Alderon has collaborated with the Province and Nalcor for more
than two years to secure access to power, including paying upfront
engineering costs of $4.4 million. The statements from Chairman
Mark Morabito regarding the economic benefits of the Kami Project
are based on an independent Economic Impact Assessment ("EIA") of
the Kami Project that was undertaken by Strategic Concepts, Inc.
and Dr. Wade Locke of Memorial University.
About Alderon
Alderon is a leading iron ore development company in Canada with
offices in Montreal, Vancouver, St. John's and Labrador City. The
Kami Project, owned 75% by Alderon and 25% by Hebei Iron &
Steel Group Co. Ltd. ("HBIS") through The Kami Mine Limited
Partnership, is located within Canada's premier iron ore district
and is surrounded by four producing iron ore mines. Its port
handling facilities are located in Sept-Iles, the leading iron ore
port in North America. The Alderon team is comprised of skilled
professionals with significant iron ore expertise to advance Kami
towards production. HBIS is Alderon's strategic partner in the
development of the Kami Project and China's largest steel
producer.
For more information on Alderon, please visit our website at
www.alderonironore.com.
ALDERON IRON ORE
CORP.
On behalf of the
Board
Mark J
Morabito, Executive Chairman
Cautionary Note Regarding Forward-Looking
Information
This press release contains "forward-looking information"
within the meaning of the U.S. Private Securities Litigation Reform
Act and Canadian securities laws concerning anticipated
developments and events that may occur in the future.
Forward-looking information contained in this press release
include, but are not limited to, statements with respect to (i) the
development of the Kami Project; (ii) the construction of the new
transmission line and its benefits; (iii) the conclusion of a Power
Purchase Agreement and the supply of power for the Kami Project;
(iv) the number of jobs created by the Kami Project; and (v) the
potential economic benefits of the Kami Project.
In certain cases, forward-looking information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved" suggesting future
outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or
performance. Forward-looking information contained in this press
release is based on certain factors and assumptions regarding,
among other things, receipt of governmental and other approvals,
the estimation of mineral reserves and resources, the realization
of resource estimates, iron ore and other metal prices, the timing
and amount of future exploration and development expenditures, the
estimation of initial and sustaining capital requirements, the
estimation of labour and operating costs, the availability of
necessary financing and materials to continue to explore and
develop the Kami Property in the short and long-term, the progress
of exploration and development activities, the receipt of necessary
regulatory approvals, the completion of the environmental
assessment process, the estimation of insurance coverage, and
assumptions with respect to currency fluctuations, environmental
risks, title disputes or claims, and other similar matters. While
the Company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
incorrect.
Forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information. Such factors include risks inherent in the exploration
and development of mineral deposits, including risks relating to
changes in project parameters as plans continue to be redefined
including the possibility that mining operations may not commence
at the Kami Property, risks relating to variations in mineral
resources, grade or recovery rates resulting from current
exploration and development activities, risks relating to the
ability to access rail transportation, sources of power and port
facilities, risks relating to changes in iron ore prices and the
worldwide demand for and supply of iron ore and related products,
risks related to increased competition in the market for iron ore
and related products and in the mining industry generally, risks
related to current global financial conditions, uncertainties
inherent in the estimation of mineral resources, access and supply
risks, reliance on key personnel, operational risks inherent in the
conduct of mining activities, including the risk of accidents,
labour disputes, increases in capital and operating costs and the
risk of delays or increased costs that might be encountered during
the development process, regulatory risks, including risks relating
to the acquisition of the necessary licences and permits,
financing, capitalization and liquidity risks, including the risk
that the financing necessary to fund the exploration and
development activities at the Kami Property may not be available on
satisfactory terms, or at all, risks related to disputes concerning
property titles and interest, risks related to disputes with
Aboriginal groups, environmental risks, and the additional risks
identified in the "Risk Factors" section of the Company's Annual
Information Form for the most recently completed financial year,
which is included in its Annual Report on Form 40-F filed with the
U.S. Securities and Exchange Commission (the "SEC") or other
reports and filings with applicable Canadian securities regulators
and the SEC. Accordingly, readers should not place undue reliance
on forward-looking information. The forward-looking information is
made as of the date of this press release. Except as required by
applicable securities laws, the Company does not undertake any
obligation to publicly update or revise any forward-looking
information.
Alderon Iron Ore Corp.Montreal
Office514-281-9434514-281-5048Alderon Iron Ore Corp.Vancouver
Office604-681-8030604-681-8039Alderon Iron Ore Corp.Evelyn CoxVP
Corporate Communications1-866-683-8030 ext.
223info@alderonironore.comwww.alderonironore.com
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