COVERSTORY
consortium to jointly participate with Bamin in the ownership and development of the integrated mine, rail and port project and to arrange its financing. The Pedra de Ferro mine will develop high grade, large-scale iron ore reserves located near the city of Caetit, in Bahia. Once operational, the Pedra de Ferro mine will supply up to 20mt of high quality iron ore to global markets annually. Porto Sul will be a deep-water port located north of the city. It will be capable of handling up to capesize vessels and will be the export point for Bamin’s iron ore. China also has plans to explore iron ore in Peru. Zhongrong Xinda Group's Jinzhao Mining , traditionally a copper, zinc and precious metals miner, is closer to becoming a regional force in the iron ore industry as Chinese mining companies ramp up investment. The unit plans to start construction at its’ USD 2.5 billion Pampa de Pongo iron ore project in the second quarter of this year. At last report, the company aims to finish work on a feasibility study for the 21,200ha property in Arequipa region before securing final permits from the energy and mines ministry. The project, which has 3.4 billion tonne in reserves, is designed to produce 22.5 million tonne per year and is scheduled to start operating in the third quarter of 2019, involves USD 1.3 billion in mine development and USD 1.2 billion in plant construction. The mining project will also feature a desalination plant and a slurry pipeline to the port of Marcona. Africa has to spend $360 billion on infrastructure by 2040, according to the African Development Bank (AfDB).
Alderon Iron Ore Corp. updates the independent Economic Impact Assessment of the Kamistiatusset Iron Ore Project, located in the Labrador Trough, Canada’s premier iron ore district. The EIA outlines significant economic benefits and positive implications for the economies of Newfoundland and Labrador, Quebec and Canada. The Kami Project is expected to create more than 100,600 full-time equivalent jobs across Canada, resulting in $7.6 billion in incomes to workers and businesses. In addition, Kami is expected to generate $5.1 billion in total revenue for federal and provincial treasuries and $19.5 billion in GDP over a 26-year period, including two years of construction activities. The Kami Project’s economic impacts were analyzed for
8 | SKILLINGS MINING REVIEW February 2018
the economies of Newfoundland and Labrador, Quebec, Ontario, the other Provinces of Canada. Chairman and CEO of Alderon Mark Morabito stated China’s bid to reduce harmful emissions is driving an increase in domestic steel mills switching to high-grade iron ore products with fewer impurities, stated. For the type of iron ore concentrate that the Kami Project will produce (in the order of 65% Fe), there is already a significant spread to the normal Platts 62% iron ore index price, that, on September 1, 2017, was pegged at US$23.50 per tonne; this spread has widened over the last 18 months and prices for high-grade ore are expected to continue to increase as environmental regulation becomes more stringent. The high-grade, low deleterious element iron ore that will be produced
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