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MEI Online: Plant Operation News: North America: September 5th 2002


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:: Allican Resources Inc. has two Potential Sites in mind for its Ferrochromium Smelter Project in Québec

Allican Resources Inc. has gone one step further in the prospective technical and financial analyses for site selection prior to building a primary and secondary smelter in Quebec.

Allican management has announced that three of the five potential sites considered, have been ruled out, namely the Bécancour, Sorel-Tracy and Thetford Mines regions. The final decision will rest on comparative studies of the Côte-Nord and the Gaspésie regions.

François Biron, President and CEO of Allican Resources Inc., announced that his board's decision to rule out certain regions was based solely on economic factors, notably 1) the impossibility of cost-effectively developing chrome ore deposits over the short and medium terms for sufficient provisioning chromite concentrate for a ferrochromium smelter and, as a result, 2) excessive overhead, given the prohibitively expensive, recurring cost of transporting raw material. Evidently, the three sites rejected could not sustain maximum profitability for the project.

Mr. Biron indicated that Allican would make its final decision public before the end of the year.

The Allican Resources project consists in building a leading-edge plant to transform chromite concentrate into low-carbon ferrochromium for export. Ferrochromium is an iron alloy used in the production of stainless and specialty steel.




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