Alderon Iron Ore affiliate, The Kami Mine Limited Partnership has signed a grant-in-lieu of municipal taxes agreement with the Town of Wabush with respect to the development of the Kami Iron Ore Project located in western Labrador, Canada.
As part of agreement, the Kami LP will pay an annual grant-in-lieu of municipal taxes to Wabush on the Kami Project mining operations that will be located within the boundary of the Town of Wabush and its Municipal Planning Area.
In addition, Kami LP will provide a capital projects disbursement to the town, with the funds going towards required infrastructure requirements.
Alderon president and CEO Tayfun Eldem said the agreement is the result of the company’s continuous positive working relationship with the local communities and marks the final municipal agreement required for the Kami Project.
"This Agreement will aid Wabush to continue providing the services that residents, businesses and future Kami Project employees rely on. We are very pleased at the support we have received from Wabush," Eldem added.
Wabush Mayor Colin Vardy said the agreement with the Kami Project will brighten the future of both the community and industry.
"The Kami Project will ultimately fill the void from the idling of Wabush Mines," Vardy added.
Payments under the agreement are scheduled to commence after initial production starts at the Kami Project.
In addition, the company announces that the Labrador City and Wabush municipal plan amendments to rezone lands within the Kami Project area are now in force, which is necessary to permit mineral extraction and mineral workings within the Project area.