One commodity that hasn’t been impacted much by COVID-19 is iron ore. Prices keep rising and the demand for high quality ore, such as that produced in Labrador, appears to not be diminishing. Both of those factors are good signs for the Kami project in Labrador west, according to the area MHA and Mining Industry NL.
“One thing we’ve seen the last few months is the consistent demand for high quality iron ore,” Brown said. “We’ll see what happens with the legal side of this in the next few months but it’s a good project, it always has been.”
The mining project fell victim to plummeting iron ore prices in 2014, only to see a rebirth in the last couple of years. Then in April the company developing it, Alderon, shuttered its doors after losing its stake in the project after being unable to repay a $14-million loan to Sprott Resource Lending.
Since then, Brown said, he hasn’t heard much on the future of the project but told SaltWire he expects more interest once the impacts of COVID-19 begin to lessen. Brown said the project could bring a lot of jobs and money to the region, which already has a skilled workforce in place.
Ed Moriarty, executive director of Mining Industry NL, said the workforce is one of a number of assets to such a project in Labrador.
Moriarty said there’s a number of advantages to a project like Kami, including the quality of the iron ore, the industrial infrastructure already in place, the capacity within the supply chain and a highly supportive community.
“We’re hopeful that as we transition through this public health crisis, we’ll see a renewed focus on this development and other projects throughout the province,” he said. “The demand for high quality iron ore is pretty clear in today’s market so that’s an attractive proposition for anybody that’s looking for entry int this space.”
Newfoundland and Labrador Natural Resources Minister Siobhan Coady spoke on the project in a press briefing on June 8, also referencing the high prices and demand for iron ore.
“Iron Ore is holding strong on global markets,” she said. “The Kami project has been through environmental assessments; they have their processes in place and it a project ready to start. We’re looking forward to see who might be interested in bringing that project to fruition.”
The project, which is also 25 per cent owned by Chinese steelmaker HBIS, has an estimated life span of 26 years. Alderon forecasted in 2017 the province would realize a $5 billion benefit over the life of the project, $2.2 billion in direct and indirect employment income and $2.3 billion in taxes.
Evan Careen is a Local Journalism Initiative reporter covering labrador for SaltWire Network
