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OTTAWA — Plans to spend billions of federal and provincial dollars on infrastructure in Ontario are being held up by a behind-the-scenes battle over the Ring of Fire, as the province wants Ottawa to match $1-billion in new money to develop the ambitious mining project.
Nearly two years have passed since Ottawa announced a 10-year, $14-billion Building Canada Fund for infrastructure, but the Conservative government is expressing its strong frustration that Ontario has yet to submit a list of projects. Ottawa has said Ontario qualifies for $2.7-billion from the fund, but the province argues that using that money for the Ring of Fire would leave very little for other provincial needs such as transit and new roads.
As a result, the two governments appear to be at loggerheads, though ministers and officials are attempting to break the impasse. The waiting, combined with falling chromite prices, has proved to be too much for Cleveland’s Cliffs Natural Resources – the region’s leading mining firm is now looking to sell its Ring of Fire assets.
Federal Natural Resources Minister Greg Rickford, who represents the Northwestern Ontario riding of Kenora, insisted Tuesday that there is momentum around the Ring of Fire and that he expects the two governments to make progress shortly.
“Our expectations and our very early indication is that that discussion is going to take place very soon,” Mr. Rickford said Tuesday. “It’s going to include the private sector – companies actually involved in this who are very positive about it – and First Nations communities as well.”
Mr. Rickford made the comments Tuesday after delivering a speech to the Canadian Mining Association in which he expressed Ottawa’s hope that the province will soon provide a list of infrastructure projects that includes the Ring of Fire.
The Ring of Fire is located about 500 kilometres northeast of Thunder Bay in the James Bay Lowlands. It has an estimated value of about $60-billion, but cannot be reached by road or rail. It has the first commercial quantities of chromite in North America.
Chromite can be turned into ferrochrome, which is a component of stainless steel. Other minerals have also been discovered in the region, including copper, nickel, gold and zinc. Industry has said development is viable provided governments help pay for road or rail access and power lines.
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