Hebei buys stake in Canadian iron ore venture
Apr 13, 2012 | 04:04 PM
| Michael Cowden
Tags
Alderon Iron Ore,
Mark Morabito,
Tayfun Eldem,
Hebei Iron & Steel Group,
Wang Yifang,
iron ore,
Kami project,
Michael Cowden
TORONTO — Hebei Iron & Steel Group Co. Ltd., China’s largest steelmaker, plans to invest Canadian $194 million ($194.6 million) in Alderon Iron Ore Corp. and its Kami iron ore project in the Canadian province of Newfoundland and Labrador.
Under the terms of the deal, Hebei will acquire 19.9 percent of Alderon’s outstanding common shares, as well as a 25-percent interest in a newly formed limited partnership that will own the Kami project, Montreal-based Alderon said.
Hebei also has agreed to buy iron ore produced from the Kami project, Alderon said. That amounts to 60 percent of annual production from Kami, up to a maximum of 4.8 million tonnes for the first 8 million tonnes of iron ore concentrate produced from the project annually.....
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