RE:Alderon Signs Benefits AgreementKami Mine a Step Closer to Reality
Tuesday , May 27 2014 | 1:52:12 PM
A benefits agreement has been signed between the province and Alderon to allow the Kami Iron Ore project in Lab West to proceed. The company has agreed to a Labrador first hiring practice and, marking a first for a project in this province, Alderon has committed to reach specific benchmarks for the hiring of apprentices -- 15 per cent during construction and 25 per cent during operations.
At peak construction 800 jobs are anticipated, with 400 required to sustain the mine through the operations phase. Natural Resources Minister Derrick Dalley says the agreement gives equitable access to jobs to women, persons with disabilities, visible minorities and Aboriginal groups. There's also a provision for a 40-space childcare centre.
Dalley says a 30 per cent target for women employment is significant. He says from the province's perspective the agreement optimizes the benefits to the people specifically as it relates to gender equality and education.
The $12-billion project is expected to be operational by 2016, producing some eight million tonnes of concentrate annually. Kami will contribute $18-billion to the provincial GDP and $2.6-billion in taxes and royalties over its 30 year life.
Alderon President and CEO, Tayfun Eldem, calls it a complete win-win. Once the company secures the construction financing, expected sometime this year, work will begin.
Eldem says some activity on the ground may be noticed within the next few weeks. He says a decision on full construction will be made before the end of September.
Opposition parties say the agreement sounds good in theory but would like to see the written document.
Liberal Leader Dwight Ball says he likes the provision to include apprentices, but says there's questions about how it will operate.
Ball says the Liberals have advocated for prescribed apprenticeships on government projects so it's good to see a private company agree to the same. He wonders what will happen to the apprentices trained in the system; whether they will continue to work on Kami or be forced to leave once their training is complete.
NDP Leader Lorraine Michael says the project will be good for the province, but she wonders how the apprenticeship program will translate in practice.
Michael says with other projects like Muskrat Falls and Hebron the workforce will be an issue so she hopes the apprenticeship training program works.