Alderon looking at Cliffs Resources' assets in Labrador, Quebec
Mining company Alderon has confirmed that it is taking a look at the assets of Cliffs Natural Resources to complement the company's proposed Kami mine project.
That includes the closed Wabush Mines, the railway line to Quebec and port facilities near Sept-Iles.
The sell-off is expected to happen next month, following Cliffs' decision to file for creditor protection in January.
- Cliffs to put mines, rails, ports up for sale in Quebec, N.L.
- Cliffs Resources officially closing Wabush Mines
Alderon's Tayfun Eldem said the assets could potentially complement the company's proposed Kami mine project.
"We are indeed looking at it but there's been no firm decision," he told CBC's Labrador Morning.
"We'll see if and when we will pursue the assets more aggressively."
Eldem said the company is looking at the long-term when it comes to the iron ore industry.
"This is a cyclical business, we believe that China will continue to play a significant role in terms of demand for iron ore and steel, but obviously China has slowed down to some extent," he said.
"In the short term there will be lots of trial and tribulations, and I think we're seeing that in the region and globally,"
"Only those that have the cash means as well as a robust plan will survive and eventually come out on the other end of the cycle."
Long-term goals
Construction of the Kami project was originally supposed to get underway by 2016, but Eldem said there is still a ways to go before construction of the mine begins.
"It's going to take us 26 months to construct, and we haven't broke ground," he said.
"It's contingent on getting funding for the project in full."
The Kami property is located next to Wabush, Labrador City and Fermont, Que.
Eldem said regardless of what happens in the future, the next few years are going to be challenging.
"Make no mistake, it's going to be tough in the next two to three years," he said.
"I don't want to mislead anyone, my optimism comes from my long-term view"