Alderon Iron Ore Corp AXXDF

RE:New Line Annoucement this Week

[ElanS2]

Zone1, I agree with your opinion about the Scully effect. The power reserved for Scully cannot be simply unplugged and Alderons line plugged in. Lines are one thing, having the power available is another. Unplugging Scully would mean dismantling the concentrator and liberating the power for other uses like Alderon. As long as the plant is standing and able to be put back in production the power will have to be available. The advantage for Cliffs in doing that would be avoiding the costs of dismantling which could include extensive environmental rehabilitation. Maintenance of the concentrator and the ability to restart production is likely less expensive than a true shutdown with no restart possible. IOC still has a tailings pond in Sept-Iles and production ceased in 1981. How the dismantling of the Sept-Iles plants has affected the tailings pond I do not know. Perhaps someone more in the know could clarify that.
Redirecting Scully power to Alderon would be very risky for the Nfld gov. and could back-fire. Do not forget that HQ has priority on Churchilll Falls water flow. Muskrat Falls cannot avoid that and the matter is already before the courts. In my opinion the Scully effect will be nil for Alderon. Nfld has been burned once by HQ and HQ will not hesitate to do it again if it is to HQ's advantage.