NEW YORK Chinese steel
producer Hebei Iron & Steel Group Co. Ltd. has made its
final investment of Canadian $119.9 million ($117.3 million) in
development company Alderon Iron Ore Corp. and its Kami iron
ore project in eastern Canada.
Shijiazhuang-based Hebei Iron
now owns 25 percent of the Kami Limited Partnership, which was
established to own the Kami project, while Montreal-based
Alderon holds the remaining 75-percent interest.
The C$119.9-million investment,
which will be used to further develop the Kami project, is the
final tranche of Hebei Irons total investment of C$182.2
million. The Chinese company now owns 19.9 percent of
Alderons outstanding common shares.
Alderon and Hebei will both
contribute to capital expenditures relating to the development
of the Kami project not covered by initial capital
contributions and project debt financing.
"Alderon now has both the
initial capital and the China market access to build a leading
company," president and chief executive officer Tayfun Eldem
said. "We believe that this strategic partnership solidifies
our ability to become the next major iron ore producer in the
As part of the strategic
partnership, Hebei Iron will be obligated to purchase 60
percent of iron ore production from the Kami project once
commercial production starts in late 2015.
A version of this article
was first published by AMM sister publication Steel