VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/22/13 -- Alderon Iron Ore Corp. (TSX: ADV)(NYSE MKT: AXX) ("Alderon" or the "Company") is pleased to announce the continuing progress towards sanction of the Kami iron ore project (the "Kami Project"), with the recent closing of the $119.9 million financing from Hebei Iron and Steel Group Co., Ltd. ("HBIS") and the advancement of the Environmental Assessment process (the "EA Process").
The Federal Government provided significant assistance throughout the transaction process with Hebei. Senior executives of Alderon were able to meet with several Federal Government officials to discuss the Hebei transaction, including those from the Department of Foreign Affairs and International Trade.
"Alderon would like to thank officials from the Department of Foreign Affairs and International Trade for their assistance on the most recent stage of the transaction with Hebei," said Mr. Mark Morabito, Executive Chairman. "Alderon has been working with the Canadian Embassy in China for over a year and government representatives were extremely helpful and did excellent work in advancing this important trade opportunity between Canada and China. On behalf of Alderon, I want to give thanks for the Federal Government's ongoing assistance with this project."
Federal Government support can also be seen for the Kami Project, and other Labrador based mining projects, in the funding of the expansion at the Port of Sept-Iles, which is the only deep water port option for Labrador based mining projects. In addition, the Federal Government has also provided loan guarantees for the Muskrat Falls Hydro Project. While there is sufficient power available for the currently planned development of the Kami Project (see Alderon press release dated January 10, 2013), the Muskrat Falls Hydro Project will be beneficial in the event that Alderon evaluates an increase in its production capacity after the commencement of commercial production at the Kami Project.
Based on an independent Economic Impact Assessment ("EIA") of the Kami Project, it will generate significant economic benefits. The EIA was undertaken by Strategic Concepts, Inc. and Dr. Wade Locke of Memorial University. The EIA estimates that the Kami Project will generate the following benefits for the people, communities and the Government of Newfoundland and Labrador and the Federal Government:
-- CDN $10.0 billion in direct, indirect and induced incomes to workers and local businesses.-- CDN $7.2 billion in total Newfoundland and Labrador Provincial and Federal tax revenues.-- CDN $25.4 billion contribution to the provincial GDP.
Mr. Morabito added, "The Kami Project will further build on Labrador's reputation as a significant producer of iron ore, create meaningful long-term jobs and spur economic activity. The robust economics of this project will result in approximately 800 jobs during the peak of construction and more than 500 full time jobs over the 30-year life of the mine. We have been pleased with the Federal Government's willingness to listen to our vision for this project and our plans to contribute to the Canadian economy in a responsible and tangible way. We share the Federal Government's belief that strong regions result in a stronger nation, and we appreciate their willingness to engage with our company over the past several months."