Natural Resources
October 2, 2014
Fostering an Environment for Natural Resources Development
Provincial Government Provides Update on Labrador West Transmission Project
The Provincial Government has been advised by Newfoundland and Labrador
Hydro (Hydro) and Alderon Iron Ore Corporation (Alderon) that construction
of a third transmission line between Churchill Falls and Labrador West has
been temporarily suspended until the completion of Alderon’s financing plan.
To date, 20 kilometres have been cleared in preparation for the installation
of the line.
“We continue to be optimistic about the future of the
mining industry in Newfoundland and Labrador. However, the global mining
industry is facing short-term challenges as a result of low commodity
prices. This makes it difficult for companies to raise capital for new
projects, including those in Labrador. We have been in contact with senior
Alderon officials and have been assured that the company remains committed
to the Kami Iron Ore project. All project costs incurred to date are covered
by the security Alderon has already provided. Construction will proceed once
additional financing is secured.”
- The Honourable Derrick Dalley,
Minister of Natural Resources
Earlier this year, the Provincial
Government directed Hydro to proceed with the construction of the third
transmission line in Labrador to help supply power for planned new
developments in Labrador West, such as the Kami Iron Ore Project, and
improve reliability for all customers in the region.
The Provincial
Government is fostering a strong business environment for the benefit of
residents in the Labrador West region and in the province as a whole.
QUICK FACTS
- The Provincial Government has been advised by Hydro and Alderon that construction of a third transmission line between Churchill Falls and Labrador West has been temporarily suspended until completion of Alderon’s financing plan.
- To date, 20 kilometres have been cleared in preparation for the installation of the line.
- All project costs incurred to date are covered by the security Alderon has already provided. Construction will proceed once additional financing is secured.
- Earlier this year, the Provincial Government directed Hydro to proceed with the construction of the third transmission line in Labrador to help supply power for planned new developments in Labrador West, such as the Kami Iron Ore Project, and improve reliability for all customers in the region.
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Media contact:
Diana Quinton
Director of Communications
Department of Natural Resources
709-729-5282, 631-8155
dianaquinton@gov.nl.ca
2014 10 02 8:00 a.m.