Minister of Northern Development and Mines Michael Gravelle Letter to FEDNOR Minister Greg Rickford (November 24, 2013)

November 24, 2013

The Honourable Greg Rickford, MP
Minister of State (Science and Technology, and
Federal Economic Development Initiative for Northern Ontario)
House of Commons
Parliament Buildings
Ottawa ON K1A 0A6

Dear Minister Rickford:

On November 8, 2013, Premier Wynne wrote to Prime Minister Harper, and I wrote to you, seeking your government’s support and participation in Ontario’s plan to establish a development corporation to facilitate development of infrastructure into the Ring of Fire. Leading up to this, Ontario has been consistent in its requests for federal engagement on Ring of Fire development initiatives and, through the most recent and previous correspondence throughout 2012 — in particular letters of May 8, 2012, June 1, 2012, and September 6, 2012 — highlighted the need for both levels of government to work together to support development of this globally significant resource.

In fact, as recently as November 7th, in Ontario’s Fall Economic Statement, we renewed our call on the federal government to step up to the plate. That call went unanswered.

Prime Minister Harper, in his letter to the Premier of July 10, 2012, wrote that ‘together we have an opportunity to break ground on a model for resource development that fully engages First Nations, is environmentally sustainable and maximizes economic opportunities for Ontario, for Canada — and for First Nations Communities’. I am disappointed to see that your government is now dismissing the development in the Ring of Fire as a provincial issue. Just last week, Prime Minister Harper stated, “This is a project that is primarily under provincial jurisdiction because ultimately resources belong to the provinces and resource development is a provincial responsibility” (CBC, November 22, 2013).

Development of this scale is not about jurisdictional boundaries or placing blame — the Ring of Fire development is about much more and that is why we continue to urge your government to be a committed partner for investment and collaboration in the development corporation. You’ve stated repeatedly that you know the significance of this project but we have yet to see that turn into action.

Ontario continues to highlight the potential benefits for First Nations and municipalities across Northern Ontario — benefits that, in fact, will extend across Ontario and Canada — through downstream economic benefits and jobs and increased tax revenues. Realizing the potential social and economic benefits of Ring of Fire development is, indeed, an objective that our governments share. We are ensuring that work is underway to prepare for this development and support a climate that will only increase the attractiveness of such an incredibly wealthy mineral deposit.

The federal government has prime responsibility for the well-being of First Nations communities. The province would view strong federal support and investment in the Ring of Fire as a meaningful way to address its obligation to First Nations communities.

Ontario’s leadership has already resulted in a number of ground breaking initiatives. We continue to work on a historic, community-driven regional negotiation process with the Matawa First Nations, led by Mr. Iacobucci for Ontario and Mr. Rae for the Chiefs of the Matawa Tribal Council. Indeed, an early success of Ontario’s collaborative approach with First Nations resulted in withdrawal of the Judicial Review against the federal environmental assessment process, launched by the Matawa Chiefs in November 2011 — a key step in providing greater certainty moving forward for industry and a significant benefit for the federal government. Again, Ontario is working to move this project forward, regardless of jurisdiction.

I would also point to other large-scale resource development initiatives in other parts of Canada that your government has supported due to their potential for national economic and social benefits. In particular, developments in British Columbia and Newfoundland and Labrador. As well, your colleague, the Honourable Joe Oliver, Minister of Natural Resources, has cited mining as being essential to the government’s goal of jobs, growth and long-term prosperity and that discoveries in Ontario’s Ring of Fire, northern Quebec and Northern Canada will provide economic growth for years to come. Ontario agrees with this assessment and views the Ring of Fire as having particular significance for the national economy.

Our proposed development corporation, designed to bring key partners together to facilitate development of infrastructure into the Ring of Fire, reflects our commitment to the infrastructure that is critical to successful development in the region. It represents an opportunity for both levels of government to work together, with First Nations and the private sector, in support of a key initiative that benefits the people of Ontario and Canada.

It is clear that the Ring of Fire is much broader than a simple resource development project. We have consistently said that this is an opportunity to bring positive change in the lives of many, for generations to come. The Ring of Fire region is a part of Ontario that has never seen development. There is a clear call for the federal government to take action with us to unlock its potential. You have stated that development in the Ring of Fire must be a collaborative process. We have put forward a collaborative model and I am asking you to take part in determining the scope and governance of this model over the coming weeks as we continue to do with other key partners in the private sector and First Nations.

I know you understand the importance of working together to maximize the benefits of this development. We have repeatedly requested your engagement and commitment to work with us on developing and funding vital infrastructure into the Ring of Fire. The province is prepared to make a substantial investment in this critical piece of infrastructure, subject to environmental and regulatory approvals and the Crown meeting its duty to consult, and is expecting the federal government to come to the table with matching funds.

As Ministers of Economic Development for Northern Ontario and as members representing a tremendous region in Northwestern Ontario, it is our duty to make this a priority for our governments. The Premier and I have affirmed our commitment and certainly the people of Canada expect you to do the same. I am confident that you will take this to the Prime Minister to fight for a defined role and commitment on funding and infrastructure development.

This is an investment not just in Ontario’s, but Canada’s future. It is about more than tomorrow, this is about the next 50 to 100 years. Now is the time to act and support resource development, jobs and growth in Northern Ontario. It is exactly the moment when Ontario’s invitation to a partnership through a development corporation should be accepted with enthusiasm. That would be in the interest of the people of Ontario that both our governments represent.

I would appreciate the opportunity to sit down with you as soon as possible to more formally discuss the important role of the federal government in this vital economic development project.

Sincerely,

Michael Gravelle
Minister of Northern Development and Mines

One Response to Minister of Northern Development and Mines Michael Gravelle Letter to FEDNOR Minister Greg Rickford (November 24, 2013)

  1. Fred November 25, 2013 at 10:00 am #

    Premier Wynne has already written Prime Minister Harper two weeks ago, seeking a role for the federal government to partner with Ontario, through the provinces recent idea of a development corporation, in order to develop vital infrastructure investments for the region.

    However, the PMO has already explained to Queens Park what the federal role is and the limits of it’s mandate regarding this project.

    Greg Rickford, Federal Minister responsible for the Ring of Fire, explained last Friday in the Timmins Press, that Ontario “recently announced the development corporation; we would have appreciated a little more collaboration and notice in that, since what it considers is fairly large in scope, from what I can gather, although it’s not been shared with me at this point.”

    Martin Cohn of The Star had called Ontario’s idea of a “development corporation” an act of desperation to keep Cliffs from pulling out of Ring of Fire.

    What confounds most who have followed this story is that Ontario no longer has the right to “develop, construct, finance, operate and maintain infrastructure supporting access to [the Ring of Fire’s] strategic resources”.

    That right belongs to KWG Resources.

    Back in June 2012, Mining minister Rick Bartolucci said that Cliffs Natural Resources would take the lead on figuring how the road to the Ring of Fire is built and financed and said that Cliffs Natural Resources was in driver’s seat on road to Ring of Fire.

    Last month, John Cumming of the Northern Miner, reported that the precedent-setting ruling by the province’s Mining and Lands Commissioner (MLC) was a win for the ‘little guy,’ as Cliffs Natural Resources lost its application for easement (surface access right-of-way) across mining claims held by KWG Resources in the Ring of Fire chromite camp of northern Ontario.

    North Bay Mayor, Al MacDonald, in an interview with Markus Schwabe of CBC Morning North, on Nov 12, 2013, said that Ontario’s divestiture plan for the ONTC has placed it on life support. The mayor explained that Ontario’s creation of a development corporation is not needed. All the pieces are there already to move the ONTC into the “James Bay & Lowlands Ports Authority”.

    Ontario has but one option left if it wants to move forward on the Ring of Fire.

    Infrastructure Ontario and the MNDM need to become shareholders and agree to transfer it’s shares of the Ontario Northland Railway to an already created federally chartered, shell crown corporation, the “James Bay & Lowlands Ports Authority”.

    Its that simple. Then all the pieces will fall into place.

    KWG would then be able to privately finance the bulk of the ROF railway. It would be able to privately fund the chromite reducer and chromite mine, all located in Ontario.

    Canadians and Ontarians should not be forced to pay for the railway, subsidize corporate power rates and see a large part of semi-processed natural resources leave Canada.

    KWG’s plan requires no large public funding for ROF railway infrastructure (Federal 3P, 50 year low interest flow through corporate loans), no corporate power subsidies (mine, railway and chromite reducer will operate primarily on natural gas), no ministerial export exemptions (following the Finnish model, most of the chromite turned into stainless steel in Ontario).