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Five-year contract signed for maintenance of equipment at Labrador iron ore mine

Labrador City, NL - Metso has agreed to a five-year life-cycle services contract with The Kami Mine Limited Partnership, an affiliate of Alderon, with respect to the development of its Kami iron ore project located in the Western Labrador...



Labrador City, NL – Metso has agreed to a five-year life-cycle services contract with The Kami Mine Limited Partnership, an affiliate of Alderon, with respect to the development of its Kami iron ore project located in the Western Labrador region of Canada. The contract encompasses the ongoing maintenance services with respect to all the equipment in the processing area.

Within this agreement, Metso will also be providing spare and wear parts including Metso’s patented Megaliner mill linings. The value of the order will not be disclosed.

“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,” says Tayfun Eldem, Alderon president and CEO. “This agreement presents a platform for achieving this goal and at the same time reduces capital outlay.”

Metso is also the supplier of the Kami Project’s most significant equipment, including the AG mill, ball mill, car dumper and the primary gyratory crusher. The delivery of the production equipment is scheduled for the fourth quarter of 2014.

“This important order with The Kami Mine Limited Partnership demonstrates our ability to make a real and sustainable difference to our customers’ businesses. Metso is today a complete service provider and long-term service partnerships create value for both our customers and Metso. As is customary with life-cycle service contracts, Metso will be fully aligned with our customer’s production targets and will therefore be remunerated on a cost-per-ton of ore processed basis”, says Juha Silvennoinen, president, Services business line, Mining and Construction, Metso.

The mine’s estimated start-up is autumn 2016. The order will be gradually booked in Metso’s order intake during the contract period.

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 preventive maintenance, normal course and peak mechanical maintenance, wear part replacements, parts management and other identified maintenance services for the equipment.

To ensure both Alderon and other customers nearby continue to receive first-class service, Metso has decided to open a local services centre for mining customers in Labrador City in Canada.

Alderon is an iron ore development company based in Canada, with offices in Montreal, Vancouver, St. John’s and Labrador City. The Kami Project, owned 75% by Alderon and 25% by HBIS, is located within Canada’s premier iron ore district and is surrounded by three producing iron ore mines.


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