May 4 2013
Alderon Iron Ore Corp. ("Alderon" or the "Company") is pleased to announce it, through The Kami Mine Limited Partnership, has entered into a definitive Engineering, Procurement and Construction Management Agreement (the "EPCM Agreement") with WorleyParsons Canada Services Ltd. ("WorleyParsons") who will be the engineering, procurement and construction management ("EPCM") contractor for the development of the Kami Iron Ore Project (the "Kami Project").
The budget for the EPCM Agreement with WorleyParsons is estimated at $92.5 million, which is consistent with the cost estimate set out in Alderon's Feasibility Study for the Kami Project.
A request for expressions of interest was issued in May 2012 to 10 Engineering & Construction firms and following an extensive evaluation, WorleyParsons was selected based on their health, safety and environment ("HSE") performance, technical and project management expertise, Newfoundland & Labrador ("NL") experience, global reputation and financial and commercial parameters. Alderon announced in November 2012 that it had entered into an Interim Engineering and Planning Services Agreement (the "Interim Agreement") with WorleyParsons, which allowed Alderon to continue to move ahead with detailed engineering. The EPCM Agreement replaces the Interim Agreement and provides the framework for all of the EPCM services that WorleyParsons will provide going forward.
"Alderon is looking forward to continuing to work with WorleyParsons and developing the Kami Project," says Tayfun Eldem, President and CEO of Alderon. "We were impressed with their commitment to and performance in workplace health and safety along with their track record in successful execution of EPCM mega projects in the natural resources sector."