The Daily Press is the city of Timmins broadsheet newspaper.
TIMMINS – The Ring of Fire development has made headlines over past months and years for both the sheer scale and economic potential of its Chromite deposit and for the myriad of problems that both junior companies like KWG Resources and big mining conglomerates like Cliffs Natural Resources.
The logistical nightmare of exporting high-grade ore from the James Bay Lowlands to processing centres in Sudbury has plagued the development of the massive ore body.
But KWG Resources has brought forward a solution. The James Bay and Lowland Ports Authority.
“When the announcement was made regarding the dissolving of the ONTC and the ONR, the labour unions that represent those employees came to us (KWG) with an idea,” said Frank Smeenk, CEO of KWG Resources. “They talked to us about being from the North, about watching the development of the Ring of Fire, particularly the Black Horse deposit, and we know that we have a perfectly viable railroad business, maybe we can collaborate.”
He was speaking during the Mining Ready Summit in Timmins Wednesday, hosted by the Nishnawbe Aski Development Fund.
It took months to develop a viable plan with the labour unions, but what evolved into the James Bay and Lowlands Ports Authority could ensure that 48.3 millions tonnes of ore found within KWGs Black Horse Deposit can be transported to Sudbury-based smelting facilities.
“I think it is fair to say that we have been mutually lobbying the ministers and members of cabinet and members of the two shadow cabinets on making this scenario make a little more sense,” said Smeenk. “What we had come to the conclusion of after looking things over, that there is a better model, and this is where things get particularly politically difficult.”
The answer for Smeenk and KWG lay in reforms made to the Marine Act.
“Some years ago, the Canadian government adopted a revision of the Marine Act and it was part of the push to dis-intermediate the federal government from the creation and maintenance of assets in favour of another model which is to have those assets be devolved to stand alone agencies that are ultimately managed by the communities that they serve,” said Smeenk.
“The two best examples of this are the Toronto Ports Authority and the Greater Toronto Airport Authority. All across the country, the former Historic Harbour Commissions have become ports authorities.”
It is from this example at the Smeenk, the ONR Labour Unions and KWG hope to create their own Ports Authority between Moosonee and Cooper Lake.
“This is about making use of transportation assets already available on the ground, the water and in the air,” he said. “To do that, it provides jurisdiction to these agencies to run their own businesses, run their own balance sheets and borrow money to maintain these assets and build them out.”
In the case of the James Bay and Lowland Ports Authority, the project is just shy of $2 billion.
“We thought, that since the government is getting rid of the railroad, maybe there is a better place to put it instead of within the Ministry of Northern Development and Mines,” said Smeenk.
“Why don’t we see if the Prime Minister and his Minister of Transport would be interested in helping the development of the Ring of Fire as they stated in the most recent throne speech.”
Smeenk hopes that the federal government will help to realize the creation of the James Bay and Lowlands Ports Authority, ensuring the disentanglement of the vast resources available in Northeastern Ontario.
“It is a beautiful idea, all of the pieces are there,” said Smeenk.
“The assets are already here in the North.
“Our two ports that could be connected are here in the North, the Port of Moosonee and Cooper Lake, these remote mining camps always rely on float planes in the beginning and these are technically classed as vessels under the Marine Act, ensuring that Cooper Lake can be classified as a port.”
The idea may be a large one, but Smeenk and those involved in lobbying the concept have confidence that the simplicity of the concept will carry it through to fruition.
“The practical next step is the Premier of Ontario needs to talk with the Prime Minister of Canada,” said Smeenk. “I think that may be politically very difficult. It may prove to be easier following an election, but we think that the best way to accomplish this is to have two very important Northerners vouch for our cause, (Timmins Mayor) Tom Laughren and (Mushkegowuk Council Grand Chief) Stan Louttit who will and have been lobbying on our behalf.
“I know that the subject has received attention in Queen’s Park, but I don’t know if it has received any attention on Parliament Hill, but in the end, only time will tell.”
For the original version of this article, click here: http://www.timminspress.com/2013/10/16/port-plan-would-aid-ring-of-fire