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WABUSH, N.L. – A proposed $1.3-billion iron ore mine in western Labrador has cleared a federal environmental assessment.

In her decision, Environment Minister Leona Aglukkaq concludes the Kami mine project “is not likely to cause significant adverse environmental effects” once mitigation measures are taken into account.

The project received provincial environmental approval last month.

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The development of the open-pit iron ore mine is expected to be a boon for western Labrador, a region stinging from the planned idling of the Wabush Scully mine next month.

Alderon Iron Ore Corp. says it can now move ahead with construction plans.

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President and CEO Tayfun Eldem has said construction on the mine could start as early as this spring or summer, creating about 800 jobs with hundreds more spin-offs, along with 500 full-time production jobs.

The Kami project, which includes storage facilities in Sept-Iles, Que., is owned 75 per cent by Alderon and 25 per cent by Hebei Iron and Steel of China.