Alderon Iron Ore says it hopes to start construction on a new mine just outside Labrador City later this year.
In a conference call on Wednesday, Alderon president and CEO Tayfun Eldem said a feasibility study on the Rose deposit of the Kamistiatusset (Kami) property conducted by the company indicated that the property has proven iron ore resources.
With demand for the product and financing in place, Eldem said the company can proceed with a plan to start up the new mine.
Eldem said he expects the environmental assessment for the mine to be released by October, and permits in place by November. With that in mind, Eldem said the company is ready to start preliminary work.
"We will be preparing for construction by ordering long lead items as well as erecting our construction camp," Eldem said on the conference call. "These will pave the way for us to start construction in November 2013."
The mine project will employ 800 workers during its construction phase, and close to 500 workers when the mine starts operation in 2015. The initial plan is for the mine to produce 8-million tonnes of iron ore concentrate annually.
Eldem said the mine has an estimated lifespan of 30 years.