May 10, 2012 – Republic of Mining

[Northwestern Ontario should] Make the most of mine project – Thunder Bay Chronicle-Journal Editorial (May 10, 2012)

May 10, 2012

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This commentary came from the Chronicle-Journal’s Letters to the Editor section.

IT is unfortunate that the biggest economic news to hit Northern Ontario in years is being met with opposition and animosity. Disappointment at some aspects of the biggest of the Ring of Fire mining proposals is understandable — you can’t always get what you want. But making the most of what they can get is what municipal and First Nations leaders must now do on behalf of their people. Complaining at this point achieves nothing.

Cliffs Natural Resources surprised no one Wednesday by picking Sudbury as the site for its $1.8-billion ferrochrome smelter, the jewel in a mining development that will have widespread benefits throughout the region. Those who seize the initiative and hold on tight will benefit most, while reluctant parties will get what’s left.

The best-case scenario for the Northwest would have been to have the whole $2.75-billion shebang — the mine, the transportation corridor and the smelter (unless, of course, you don’t relish the environmental impact of a 300-megawatt furnace).

Instead, this region gets the first two while Sudbury — long the mining centre of Northern Ontario with the infrastructure and expertise Cliffs needs — gets the ferrochrome processor to make the ingredients for stainless steel.

Sombre ceremony marks 20th anniversary of Westray mine explosion – by Michael Tutton, The Canadian Press (Canada.com – May 9, 2012)

May 10, 2012

http://www.canada.com/index.html

NEW GLASGOW, N.S. — High school students placed white roses on the Westray mine disaster memorial Wednesday during a ceremony that urged future generations to never forget the importance of worker safety.

Twenty-six flowers were laid on the dark granite stone, one for each of the miners whose names are etched into the memorial of the May 9, 1992 disaster.

Under leaden skies that delivered a steady downpour, Rev. Glen Matheson gave an account of the history of mining disasters, saying the explosion in Plymouth, N.S., at the Westray mine had been among the worst in Canadian history.

He read from the public inquiry into the disaster, which found that it was the result of “incompetence, mismanagement, bureaucratic bungling, deceit, ruthlessness, coverups, apathy, expediency and cynical indifference.”

Cliffs Natural Resources to invest $3.3 billion to develop Ontario Ring of Fire – by Keith Leslie, The Canadian Press (Canadian Business Magazine – May 09, 2012)

May 10, 2012

Founded in 1928, Canadian Business is the longest-publishing business magazine in Canada.

TORONTO – Ontario announced a $3.3-billion investment by an American mining company Wednesday to develop the Ring of Fire, a huge mineral deposit near James Bay, but faces opposition from some First Nations, local communities and environmentalists.

Cliffs Natural Resources plans to build a chromite mine, a road to the area about 500 kilometres northeast of Thunder Bay and a processing facility near Sudbury, said Northern Development and Mines Minister Rick Bartolucci.

The Ring of Fire includes the largest chromite deposit ever discovered in North America. The $1.8-billion proposed smelter in Capreol would create about 900 jobs, including 450 when it’s in operation by 2015, and would process the chromite into a key component of stainless steel, Bartolucci said in Sudbury.

“There was stiff competition with other jurisdictions for the location of this smelter and those jurisdictions were outside the province of Ontario,” he said.

Involve First Nations early to avoid disputes, leaders say – by Rick Garrick (Wawatay News – May 9, 2012)

May 10, 2012

http://www.wawataynews.ca/

National Chief Shawn A-in-chut Atleo is calling for First Nations to be involved from the outset in resource development.

“Currently, First Nations are often the last to know about major resource development,” Atleo said during his April 23 economics of reconciliation speech at the Canadian Club of Toronto. “This relegates our communities to few options and usually results in confrontation. So we end up with protests and legal battles that frustrate opportunity for everyone and deepen tensions today and in the future.”

Kitchenuhmaykoosib Inninuwug Chief Donny Morris said the government has to let his community know when resource development is being discussed for their traditional territory.

“We need to be in the driver’s seat,” Morris said. “This is our territory and when two companies are being bought out by the government, obviously there is something there. The government is acknowledging our veto to say no, but it is taking them too long to come to the forefront, where they basically buy out these companies.”

Ontario moves to open up Far North with $5.1-billion chromite deal – by Tim Shufelt (National Post – May 10, 2012)

May 10, 2012

The National Post is Canada’s second largest national paper.

“It’s a very high-quality chromite, which is a very important strategic metal,”
said Stan Sudol, a communications consultant and blogger at republicofmining.com.
“There are no substitutes for it. And there are only three major countries in the
world that produce it: South Africa, Kazakhstan and India.” … The trillion-dollar
Sudbury Basin is by far Canada’s biggest resource discovered to date, having
yielded base metals for more than 100 years, Mr. Sudol said. (Financial Post)

The government of Ontario took a big step toward unearthing the geological treasures of the province’s Far North in announcing an investment to develop the first mine in the mineral-rich Ring of Fire.

Cliffs Natural Resources Inc. plans to invest $3.3-billion to establish a chromite mine west of James Bay and build a $1.8-billion smelter near Sudbury, the province said Wednesday.

And since the Ring of Fire is inaccessible by road or rail, hundreds of kilometres of new all-season road will be built to truck the ore south.

Improving access to Ontario’s northern expanses could lead to the discovery of additional base-metal deposits with immense economic potential.

Cliffs’ ‘world class’ chromite project gets Ontario Govt.’s ardent support – by Dorothy Kosich (Mineweb.com – May 10, 2012)

May 10, 2012

www.mineweb.com

Cliffs Natural Resources board approves advancing the proposed C$3.3bn project in the Ring of Fire area of Northern Ontario to the feasibility stage.

RENO (MINEWEB) – Ontario’s provincial government, led by Premier Dalton McGuinty, Wednesday announced its support for global iron ore miner Cliffs Natural Resources’ proposal to build a Cdn$3.3 billion chromite mine, transportation corridor and processing facility in Northern Ontario’s Ring of Fire.

In a news release, the government noted, “The Ring of Fire represents one of the most significant mineral regions in the province and includes the largest deposit of chromite ever discovered in North America.”

The Cliffs Chromite Project is expected to have substantial benefits in the Far North, and in northern Ontario. The entire project could employ as many as 1,250 people. The McGuinty government believes the project will also generate hundreds of indirect employment opportunities for Northern Ontarians and First Nations communities.

NEWS RELEASE: Ring of Fire decision ill-considered says Greenstone Mayor

May 10, 2012

(Greenstone, May 9, 2012) Mayor Renald Beaulieu of Greenstone, the closest municipality to the Ring of Fire mineral find, was underwhelmed by today’s announcement from Cliffs Natural Resources to locate the chromite refinery near Sudbury.

“It is truly unfortunate that Cliffs and the Provincial Government chose not to meaningfully consult with the directly affected First Nations and Greenstone prior to making and announcing their decision,” stated Mayor Beaulieu.

Important questions remain unanswered by Cliffs and the Province said Beaulieu. In particular, it’s hard to see how you can lead with a decision on a refinery location without an agreement on how you are going to obtain the ore body in the first place.

– Why are First Nation interests being ignored? Today’s update confirms the suspicion of First Nations that a secret deal has been worked out between the Government of Ontario and Cliffs. That deal doesn’t place any value on the support First Nations have offered for the project nor does it take their position on the mining activity seriously.

How to sustainably turn Canada’s resources into wealth – by Brian Emmett (Globe and Mail – May 7, 2012)

May 10, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Brian Emmett is a principal at the Ottawa-based consulting firm Sussex Circle. He served as Canada’s first commissioner of the environment and sustainable development, and was an assistant deputy minister (policy) at Environment Canada, a vice-president (policy) at the Canadian International Development Agency and an assistant deputy minister (Canadian Forest Service) at Natural Resources Canada.

The way policy-makers and Canadians think about natural resources (fossil fuels, minerals and forest resources) is fundamentally important to the Canadian economy. How we perceive and evaluate our natural resource endowment shapes policy frameworks, which, in turn, can have profound effects on the way we live and the way we earn our living.

Prime Minister Stephen Harper touched on this during the Summit of the Americas in Cartagena last month, saying: “Resource development has vast power to change the way a nation lives. … It is also something which is tremendously responsive to actions of government.”

MINING WATCH NEWS RELEASE: Ontario Could Get Burned by Flawed Ring of Fire Process

November 3, 2015May 10, 2012

http://www.miningwatch.ca/home

Wednesday, May 09, 2012

Ottawa, May 9, 2012. In paired press releases the Ontario Government and U.S. mining company Cliffs Natural Resources today announced plans to proceed with the next step in the development of a chromite deposit in the area dubbed the “Ring of Fire”. The remote area of northern Ontario and the various access routes to it are in the traditional territories of several Ojibway, Oji-Cree, and Cree First Nations.

The announcements confirmed earlier indications that Sudbury could be the location of a proposed ferrochrome processing facility and that Cliffs’ proposed transportation corridor, known as the North-South Route could be developed to link the mine to the existing road and rail systems to the south. This transportation route is competing with another that would make greater use of existing roads and is being proposed by Noront Resources. Each route has its supporters among various First Nations in the area. Northern municipalities and First Nations have also suggested alternative locations for the processing plant.

If the mineral resources of the Ring of Fire are to be developed, value added processing done in Ontario – in accordance with Section 91 of the Mining Act – is certainly in the best interest of the province. Value added processing of mined minerals can greatly increase employment and taxation opportunities.

Enbridge AGM: Pipeline protest drums pits pipelines against land, water – by VAnessa Lu (Toronto Star – May 10, 2012)

May 10, 2012

The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

The proposed Northern Gateway pipeline appears locked on a collision course, as First Nations chiefs put Enbridge officials on notice again that they won’t budge from their opposition.

“We are a very patient people,” warned Chief Na’moks of the Wet-suwet’en nation, near Smithers, B.C., at Enbridge’s annual general meeting in Toronto on Wednesday.

“We don’t base the wellbeing of life on money,” said April Churchill, vice-president of the Haida Nation. “Money will not change our minds. “There is no compensation that is acceptable that will kill off cultures and kill off people.”

First Nations leaders have repeatedly sent their message to Enbridge officials, and they travelled thousands of kilometres from British Columbia by train, to make their point again in Toronto.

Frustrated [First Nations – No consultation] – by Jamie Smith (tbnewswatch.com – May 9, 2012)

May 10, 2012

http://www.tbnewswatch.com/

The region’s First Nations and municipal leaders are frustrated and disappointed by a lack of planning from the province and Cliff’s Natural Resources on the Ring of Fire.

In the wake of an announcement Wednesday morning that Cliff’s will set up their ferrochrome processor in Capreol, near Sudbury, leaders from across Northwestern Ontario sounded off on the province’s lack of commitment and consultation with the region.

“It was a great day for Northeastern Ontario. It was a very sad day for Northwestern Ontario I can’t say it any plainer than that,” Thunder Bay mayor Keith Hobbs said.

Natural Resources minister Michael Gravelle and Aboriginal Affairs minister Kathleen Wynne faced a cold reception from regional leaders when they announced Cliff’s $3.3 billion investment to build its chromite mine, North-South all-season road from the Ring of Fire and processing facility.

North [Ontario] to reap benefits – by Carol Muligan (Sudbury Star – May 10, 2012)

May 10, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Sudbury will be the home of a $1.8-billion ferrochrome processing plant to be built by Cliffs Natural Resources, but all of Northern Ontario is “poised to reap the benefits” of the company’s development of the Ring of Fire, says Rick Bartolucci.

Cliffs announced Wednesday morning that its board of directors has moved its proposed chromite project from the pre-feasibility to the feasibility stage.

At the same time, Northern Development and Mines Minister Bartolucci announced in Sudbury that the coveted smelter to process chromite ore mined and concentrated in the northwest will be built near Capreol by 2015.

Chromite is a key component in the manufacture of stainless steel, a product we need for our “day-to-day lives,” Bartolucci told about 75 people at a news conference at the Willet Green Miller Centre at Laurentian University. About 450 jobs will be created in the construction phase and 450 in the production phase of the smelter.

Cliffs will not be swayed to change [Sudbury] location – by Laura Stricker (Sudbury Star – May 10, 2012)

May 10, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

The smelter coming to Greater Sudbury is the largest project Cliffs Natural Resources has ever conceived. “It’s a massive project for Cliffs, it’s the biggest project by far that we have ever tackled,” Cliffs’ President Joseph Carrabba said Wednesday evening at Laurentian University.

Carrabba was in Sudbury for a few hours, following Wednesday morning’s announcement that its $1.8-billion ferrochrome smelter will set up shop near Capreol.

The Municipality of Greenstone, Thunder Bay and Timmins were also considered as locations for the smelter. But in the end, Greater Sudbury was just what Cliffs was looking for.

“We had to be in a place where mining is known, it’s welcomed and we can work through the business practices,” said Carrabba. “It looks like it’s a great place for the technical skills, the mine service skills that we need and a great opportunity for a great workforce as well … this was the right spot and we are very pleased to be here.”

Ring of Fire mineral development faces burning issues in Ontario – by Adam Radwanski (Globe and Mail – May 10, 2012)

May 10, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Seeking to get in on a resource boom that to this point has passed it by, Ontario has taken a major step toward developing the mineral-rich “Ring of Fire” in the province’s far north.

Northern Development and Mines Minister Rick Bartolucci announced Wednesday that the government has reached a framework agreement with the U.S.-based Cliffs Natural Resources Inc. for a $3.3-billion investment, including a $1.8-billion smelting plant in the Sudbury area.

But despite the buoyant tone from both sides of the deal, sources in and around government acknowledge Mr. Bartolucci’s target date of 2015 is highly optimistic. That’s because there remain a great number of hurdles to be overcome before much-needed jobs can be created from extraction or processing of chromite, a key ingredient used to make stainless steel.

Kinross, gold producers vow to fight back as shares tumble despite rising prices – by Pav Jordan (Globe and Mail – May 10, 2012)

May 10, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Canada’s big gold miners are under siege in the markets, their shares tumbling even as bullion rides high, and they’re vowing to fight back.

“I’m a shareholder and my family is a shareholder, and we’re determined to change that around,” Tye Burt, chief executive officer of Kinross Gold Corp., declared Wednesday, referring to the company’s languishing stock price.

Mr. Burt and others in the industry are lamenting the gap between the value of gold stocks and the price of bullion, which is holding near-record highs after a surge that is almost a decade old now.

Kinross shares are down 60 per cent in the past eight months. Barrick Gold Corp. (ABX-T37.650.942.56%), the world’s biggest producer, has seen its stock sink 34 per cent since September, while smaller rivals such as Yamana Gold Inc. (YRI-T13.750.332.46%) and Iamgold Corp. (IMG-T10.80-0.07-0.64%) have suffered declines of 27 per cent and 55 per cent respectively from their 52-week highs.