Hebei Iron & Steel Group Co., Ltd. (“HBIS”), China’s largest steel producer, joined forces with the Government of Newfoundland and Labrador at a joint conference held in Beijing, China to further accelerate HBIS’s investment in Alderon Iron Ore Corp. (“Alderon”) and the Kami Iron Ore Project (“Kami Project”) located in Western Labrador. A delegation of representatives of the Government of Newfoundland and Labrador, led by Premier Kathy Dunderdale, recently made a trip to China to explore trade and investment opportunities between China and Newfoundland and Labrador. As part of this trip, the representatives attended a conference to accelerate HBIS’s investment in Alderon and the Kami Project. HBIS’s investment is the largest Chinese investment ever into a Newfoundland and Labrador mining project and the Government of Newfoundland and Labrador has acknowledged its significance.
Representatives of HBIS and Alderon also had an opportunity to meet with the representatives of the Government of Newfoundland and Labrador to discuss the progress of the Kami Project and the benefits that it will bring to the Province. HBIS is confident after these meetings that the Government of Newfoundland and Labrador is supportive of the development of the Kami Project.
Senior officials from Hebei Provincial Government, National Development and Reform Commission (NDRC), Hebei NDRC, State-owned Assets Supervision and Administration Commission of the State Council, Hebei and China Development Bank as well as Bank of China Hebei Branch attended the conference. Canadian Ambassador Guy Saint-Jacques also attended the conference and spoke to the audience.
HBIS Chairman Wang Yifang and President and CEO Mr. Yu Yong attended the conference and Chairman Wang told the audience in his speech that HBIS continues to have a long term commitment and support the Kami Project. HBIS will introduce Alderon and the Kami Project to various Chinese Banks in order to obtain a portion of the project financing necessary to develop the Kami Project. HBIS’s view is that Alderon’s current share price does not reflect the tremendous value of the Kami Project. As Alderon and HBIS continue to jointly develop the Kami Project and meet each milestone, HBIS expects its true value will be reflected in the market.
HBIS was established on June 30, 2008 through the merger of former Tangshan Iron & Steel group and Handan Iron & Steel Group. HBIS is China’s largest steel producer and the third largest in the world. HBIS ranks #269 among Fortune Global 500 in 2012. HBIS has a production capacity of 50 million tonnes. It produced 44.4 million tonnes of steel and generated RMB 250 billion of revenue in 2011. It controls 16 large operations across a number of sub-sectors of steel production, iron ore mining, trading and logistics.
Alderon is a leading iron ore development company in Canada with offices in Vancouver, Montreal, 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 four producing iron ore mines. The Alderon team is comprised of skilled professionals with significant iron ore expertise to advance Kami towards production. HBIS is Alderon’s strategic partner in the development of the Kami Project and China’s largest steel producer.
For more information relating to the strategic partnership please review news releases issued by Alderon on September 4, 2012 and April 13, 2012.
Cautionary Note Regarding Forward-Looking Information
This press release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward looking information contained in this press release include, but are not limited to, statements with respect to (i) the development of the Kami Project; (ii) the potential value of the Kami Project; and (iii) Alderon’s share price.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance.
Forward-looking information contained in this press release is based on certain factors and assumptions regarding, among other things, receipt of governmental and other approvals, the estimation of mineral reserves and resources, the realization of resource estimates, iron ore and other metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Kami Property in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process, the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Kami Property, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access rail transportation, sources of power and port facilities, risks relating to changes in iron ore prices and the worldwide demand for and supply of iron ore and related products, risks related to increased competition in the market for iron ore and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licences and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Kami Property may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, risks related to disputes with Aboriginal groups, environmental risks, and the additional risks identified in the “Risk Factors” section of Alderon’s Annual Information Form for the most recently completed financial year or other reports and filings with applicable Canadian securities regulators. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this press release. Except as required by applicable securities laws, the company does not undertake any obligation to publicly update or revise any forward-looking information.