Alderon Iron Ore Corp. (TSX:ADV,NYSE MKT:AXX) announced that The Kami Mine Limited Partnership, an affiliate of Alderon, has signed a Life Cycle Services Agreement with Metso Minerals Canada, Inc. with regards to the development of the Kami Iron Ore Project in western Labrador. Metso is currently the supplier of the Kami Project’s most significant equipment including the AG Mill, Ball Mill, Car Dumper and the Primary Gyratory Crusher. Additionally, Kami has now selected Metso to provide ongoing maintenance services for all of the equipment in the processing area.
As quoted in the press release:
The Agreement applies to all mechanical maintenance in the processing area and not just the equipment supplied by Metso. Metso will also provide planning, supervision, labour, hand tools and consumables to perform the preventative maintenance, normal course and peak mechanical maintenance, wear part replacements, parts management and other identified maintenance services for the equipment.
Alderon CEO, Tayfun Eldem, said:
We have chosen Metso to improve overall equipment reliability, to enable a rapid ramp-up to nameplate capacity and to secure the aggressive maintenance cost targets from our feasibility study. This Agreement presents a platform for achieving this goal and at the same time reduces capital outlay.
Get Our Expert Guide to Base Metals Investing FREE!Download this FREE Special Report, Investing Opportunity: Using LME Prices and Base Metals News.