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.
For the rest of this article, click here: http://www.mining.com/alderon-to-pay-1-million-for-part-of-wabush-mines-to-use-as-tailings-disposal/