May seek to develop iron ore property with Altius and Chinese partners
The partnership has been dubbed the Julienne Lake Alliance, with the Department of Natural Resources announcing this morning discussions are underway with the alliance on the potential development of a mining project at the province’s Julienne Lake property in Labrador.
© — Photo by James McLeod/The Telegram
Natural Resources Minister Derrick Dalley - Telegram file photo
As The Telegram has reported, the provincial government spent more than $3 million between 2009 and 2013 to gather data and complete early mineral exploration at the 334-hectare property, found roughly 25 kilometres from Wabush and Labrador City.
In the past year, the province has quietly continued a search for what it would consider to be the right investor to further work on the property, moving towards development of an iron ore mine.
Government issued a call for expressions of interest in October 2012, closing in November. In all, 13 proposals were received.
Coming out on top is a proposal from the Julienne Lake Alliance. According to a statement issued today, the alliance includes Altius Resources and two unnamed Chinese companies — described as “major Chinese integrated iron ore mining and steel producing companies” — as backing partners.
“Through geoscience exploration, the provincial government successfully identified an iron ore deposit of significant economic value in western Labrador. We are now moving ahead by engaging the private sector to maximize the development of this resource and to support a sustainable economy for Newfoundlanders and Labradorians,” Natural Resources Minister Derrick Dalley said in the statement.
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The province has entered into exclusive discussions with the consortium, seeking a agreement on development.
According to the government’s statement, the identified iron ore resource at the site could lead to a mine with the ability to operate for 25 years and produce up to 22 million tonnes of iron ore concentrate each year.
Development at this point is not guaranteed, but today’s announcement is a next step.
“Altius and its partners in the Julienne Lake Alliance are delighted to have won the opportunity to advance their proposal to a final agreement and to then undertake approximately two years of feasibility studies for the Julienne Lake project. Early and extensive engagement and co-operation with all stakeholders will be a core element of the project advancement plan,” Brian Dalton, president and CEO of Altius Resources, said in the statement.