Alderon Iron Ore Corp. will purchase assets related to the Scully Mine for the purpose of disposing tailings produced from its flagship Kami project
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 will 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 Mines 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.
