[Northwestern Ontario should] Make the most of mine project – Thunder Bay Chronicle-Journal Editorial (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.

 Cliffs has always called Sudbury its base-case scenario and purchased a former minesite in the area a year ago. Sudbury is on a rail line that will link with the end of a new mine road near Nakina and it has a Hydro One transformer station to power the smelter.

 Thunder Bay Mayor Keith Hobbs tried hard to get Cliffs to consider Thunder Bay which has enough power at its generating station but no rail access after CN removed its Kinghorn line to Nakina.

 Hobbs later joined Greenstone and Nipigon to press the case with First Nations to have the smelter built near Nakina. But that would have required a new power transmission line. With everything it needed at Sudbury, why would Cliffs have chosen anyplace else? It did give the others a good look but really, it had no other choice. Besides, if Thunder Bay put up a big fuss over a wind farm, what must Cliffs have expected if it had proposed an arc furnace?

 Hobbs was angry at a news conference with Natural Resources Minister Michael Gravelle and Aboriginal Affairs Minister Kathleen Wynn. He chided them for not revealing the nature of ongoing negotiations with Cliffs that still must settle some processing and power details. But Hobbs knows as well as anyone in politics that details about huge private-sector proposals in a competitive environment cannot be held in public. Investment regulations and legislative oversight protect the public interest but this is Cliffs’ project.

 The most persistent complaints come from First Nations who continue to allege they have not been properly consulted on the project. This is the provincial government’s main problem and it may stem from a cultural divide that stymies many relations between First Nations and government. Aboriginal leaders come at discussions with a different approach than government negotiators. They expect to be heard for as long as it takes to make their case. To be interrupted or have talks cut short is considered an insult and this may well be at the heart of much of the cultural divide here in the North.

 Still, some First Nations have managed to get along fine with mining companies. They negotiate profit sharing and arrange to have people trained to work in mining operations.

 Aroland and Marten Falls are closest to the proposed mine and their chiefs and councils must take advantage of repeated assurance by the province and Cliffs that First Nations are key players and will benefit by their proximity to this vast development. How much depends on them. Finance Minister Dwight Duncan said Wednesday there are 1,200 jobs in store for residents of area First Nations.

 Surely, it’s time for all parties to this important development to figure out a way to simply talk to one another and then prepare to make the most of the biggest economic opportunity in decades. The province must use its regulatory clout to protect environmental values and negotiate the best possible economic benefit from this development. After that, the sky’s the limit for all concerned.