Alderon Iron Ore Corp AXXDF

RE: RE: 1.1 Billion tonnes

[greenandgold]

ADV does have great relationships. I believe Tayfun Eldem, the current CEO, was in charge of the QNSL railway as part of his duties at IOC. But getting a life of mine commitment for shipping on the QNSL (LIM recently signed one of these agreements) is an absolute necessity. Building 400 km of rail to Sept-Iles is not a good prospect for ADV.
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I actually think iron ore prices slowing down a little bit would be helpful for ADV's health. Some of these higher capex projects in the Labrador Trough would be put on hold with iron ore prices at $125 per tonnes, instead of the current price of $177 per tonnes. This would ease rail and port capacity issues.
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If all of the majors and juniors follow through on their construction and expansion plans it's clear that QNSL railway won't be able to handle all the traffic.
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I wonder why Arcelor Mittal hasn't been more involved in takeovers in the Labrador Trough (they have of course bought Baffinland Mines in Nunavut). They have a private rail line with plenty of extra capacity located near tempting takeout targets like Alderon and Champion Minerals (and Consolidated before it was taken out). Why spend $6 billion in capex on a complex project in Baffinland when you can spend less than $1 billion in capex on an easy project like Kami?