Alderon Iron Ore Enters Off-take Agreement with Glencore

Alderon Iron Ore Corp. (TSX:ADV,NYSE MKT:AXX) announced that its affiliate, the Kami Mine Limited Partnership, has entered into an off-take agreement with a subsidiary of Glencore plc (LSE:GLEN). Under the terms of the agreement, Glencore will acquire all production from the Kami Project that has not been allocated to Hebei Iron and Steel Group (SHE:000709).

As quoted in the press release:

Under the terms of the Off-Take Agreement, Glencore will be obligated to purchase, upon the commencement of commercial production, 40% of the actual annual production from the Kami Project up to a maximum of 3.2 million tonnes of the first 8.0 million tonnes of iron ore concentrate produced annually at the Kami Project. The term of the Off-Take Agreement will continue until Kami LP has delivered 48.0 million tonnes of iron ore concentrate to Glencore, which is expected to be 15 years after the commencement of commercial production.

Alderon president and CEO, Tayfun Eldem, said:

With 100% of the initial production from the Kami Project now committed, we believe this enhances Alderon’s ability to obtain the requisite financing required to commence construction of the Kami Project. The offtake arrangement with Glencore gives Kami concentrates global exposure and the multi-year agreement serves as another significant de- risking milestone for the Kami Project.

Click here to read the Alderon Iron Ore Corp. (TSX:ADV) press release