Chromite project delays may jeopardize miner’s plans – CBC News Sudbury (May 9, 2013)

http://www.cbc.ca/sudbury/

Cliffs Natural Resources president remains optimistic, but has reasons for ‘concern’

A year after it was announced that a chromite smelter and hundreds of jobs were coming to Sudbury, there is still no deal in place. And the mining company behind the project, Cliffs Natural Resources, now says the delays could put the whole thing in jeopardy.

The province and the mining company have yet to sign an agreement that lays out the specifics of the mine access road, how much of the ore will be processed in Sudbury and how much Cliffs will pay for electricity.

After being in daily contact last year, the two sides haven’t met since January. But the new mines minister, Michael Gravelle, said there’s no reason to worry. “It’s not a question of apportioning blame at all, I think this is just a complex project,” he said.

Cliffs’ vice-president Bill Boor said he remains optimistic, however long delays could mean no mine and no smelter. “The project does have risk when it’s stopped like this,” he noted. “And that causes me concern.”

No meetings planned

While the chromite isn’t going anywhere, the market conditions have to be right for a complicated plan like this to work, Boor said.

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Webequie celebrates Mining Essentials graduates – by Rick Garrick (Wawatay News – May 8, 2013)

http://wawataynews.ca/

Webequie’s Angeline Shewaybick is looking forward to a career in mining after graduating with the highest marks in Oshki-Pimache-O-Win’s Mining Essentials program.

“I tried really hard to study because I really wanted to do well,” said Shewaybick, who was awarded a laptop computer for her high marks during the May 2 graduation ceremony in Webequie. “My goal after this is finishing my education and hopefully getting into the mining industry. That’s where I want to work — it’s so close to home.”

Although Shewaybick was the only woman in the 12-week pre-employment training program, she encouraged other women to consider mining as a career. “It was a great experience for me,” Shewaybick said. “All I can say is take it — it was a great experience and I’ve learned a lot and you don’t have to be a guy to do it.”

Shewaybick enjoyed the hands-on pre-trades training activities in the Cambrian College mobile trades training trailer and the week-long job shadowing placement at the Cliffs Esker Camp in the Ring of Fire. “It was more hands on and I really enjoyed that part,” Shewaybick said.

Alec Wabasse, Amos Jacob, Brandon Shewaybick, Cody Mekanak, Corey Neshinapaise, Dylan Jacob, Edgar Jacob, Lewis Sofea, Leroy Troutlake, Luke Meekis, Robert Jacob, Rudy Mekanak and Simon Shewaybick, all from Webequie, also graduated from the program.

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Poor Decisions Are Sending This Company [Cliffs Natural Resources] Downhill – by Mike Thiessen – (Motley Fool – May 8, 2013)

http://beta.fool.com/

Mike is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Once a darling of fund managers and retail investors alike, Cleveland-based Cliffs Natural Resources (NYSE: CLF) has suffered an epic share-price collapse as well as a number of strategic setbacks. Buffeted by low market prices for its core iron ore and coal products and slackening demand from emerging-market customers in China and elsewhere, the company has had to implement several painful cost-control measures to shore up its finances.

Even worse, its much-touted acquisition of the Bloom Lake mine complex in Quebec has thus far provided disappointing results. Cliffs has delayed a key expansion at the mine and has given only vague guidance about when these activities might resume. Given the high hopes that the company expressed for Bloom Lake as recently as June of 2011, this comes as a serious setback. Shareholders have punished the firm by pushing its price-to-book ratio below 0.6. If Cliffs cannot turn around its fortunes soon, more drastic steps may need to be taken.

Financial Comparison with the Competition

As a major producer of basic raw materials like iron ore pellets, coking coal and lump ore, Cliffs competes with some of the largest and most recognizable names in the mining industry. These include London-based Rio Tinto (NYSE: RIO) and Melbourne-based BHP Billiton (NYSE: BHP).

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Ontario Ring of Fire’s Extraordinary Potential – Honourable Tony Clement (May 6, 2013)

The Honourable Tony Clement is the Minister for FedNor. This speech was given at the CANADIAN INSTITUTE OF MINING, METALLURGY AND PETROLEUM (CIM) CONVENTION 2013, on May 6, 2013 in Toronto, Canada.

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Thank you for that kind introduction and good morning. It’s a pleasure to welcome so many participants, distinguished guests and speakers at this year’s convention of the Canadian Institute of Mining, Metallurgy and Petroleum.

First, I wish to thank the organizers for inviting me and for this opportunity to say a few words this morning.

This is an exciting time for natural resource development in Canada, and especially so in a region I hold dear, Northern Ontario, but more about that in a moment.

This sector contributes both to the strength of our economy and the quality of our lives. And it is critical to our future.

Natural resources support close to 1.6 million jobs in Canada. And these aren’t just any jobs. Mining, oil and gas jobs are the best paid jobs in Canada according to Statistics Canada, earning an average of some $1,900 a week. These are the kinds of jobs Canada can be proud of and should encourage.

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NEWS RELEASE: Minister Clement highlights need for collaborative approach to Ring of Fire development

TORONTO, Ontario, May 6, 2013 — Today, the Honourable Tony Clement, Minister for FedNor, met with representatives of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) during their annual convention to underscore the importance of a collaborative approach to the development of the Ring of Fire, with an emphasis on early dialogue with First Nations.

“Our Government’s top priority is jobs, growth and long-term prosperity. The Ring of Fire is a generational opportunity that can materially improve the economic prospects and quality of life for thousands,” said Minister Clement. “The Harper Government is committed to working closely with the First Nation communities located near the Ring of Fire to ensure that they realize fully the economic benefits of this once-in-a-lifetime opportunity.”

The Ring of Fire, located approximately 500 km northeast of Thunder Bay, is potentially the largest mining development Northern Ontario has ever seen. The region has significant deposits of nickel and copper, and represents North America’s single largest deposit of chromite, the main ingredient in stainless steel. With mineral content worth an estimated $30-$50-billion, the Ring of Fire could create 5,000 direct and indirect jobs in Northern Ontario alone.

“Our Government recognizes the importance of natural resource developments, like the Ring of Fire, to our country’s growth and long-term prosperity,” said Minister Clement. “That is why we are implementing a comprehensive resource development agenda based on principles of efficient governance, environmental protection and consultation with First Nations.”

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No bling for the Ring – by Staff (Northern Ontario Business – May 3, 2013)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

The Ring of Fire received passionate lip service from the Ontario government in Premier Kathleen Wynne’s 2013 “prosperous and fair” budget. The Wynne government promised to keep working with industry and First Nations to “explore and develop mineral extraction opportunities…in an environmentally sustainable way.”

No mention was made of a financial commitment toward transportation infrastructure to the future mining camps of the Ring of Fire in the James Bay lowlands.

“The government will continue to assert Ontario’s pride in manufacturing, financial services, tourism, forestry and natural resource development,” said Wynne in her budget speech.

The government plans to extend its Northern Industrial Electricity Rate program, which helps cut power cuts to Ontario’s largest industries. The three-year program, announced in March 2010, will be extended with an additional $360 million over three years.

Among the government’s promises to business include job creation through investments in public transit, roads, bridges, hospitals and schools.

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Ring of Fire missing [from Ontario budget speech]? – by Jeff Labine (tbnewswatch.com – May 3, 2013)

http://www.tbnewswatch.com/

The Ring of Fire was missing from this year’s provincial budget when it was presented to Queen’s Park, but Ontario’s mining minister says it hasn’t been forgotten.

The minority-led Liberal government revealed its $127-billion budget in Toronto Thursday. It’s the first budget to be tabled under the leadership of premier Kathleen Wynne. Having six main themes, Finance Minister Charles Sousa said the government sought to create a fair and prosperous Ontario.

But Sousa never mentioned the massive chromite deposit in the lower James Bay area, which is expected to bring further prosperity to the province’s North. MPP Michael Gravelle (Lib. Thunder Bay – Superior North) said the Ring of Fire is in the budget.

“We’re providing $5 million in enhanced funding to those First Nation communities closest to the Ring of Fire,” he said. “There’s no question that our commitment to the Ring of Fire is very strong. I’m pleased to see that there will be significant investments going towards related to the Ring of Fire. For many people, the future of the province’s economy will benefit with the North succeeding.”

Gravelle pointed out that the Ring of Fire has been repeatedly mentioned in previous budgets and in the throne speech. He called the budget fair and strong and said he was pleased to see the number of investments being made in the North.

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Igniting Northern Ontario’s Economy – by Ontario PC Leader Tim Hudak (April 26, 2013)

This speech was given at the Northwestern Ontario Municipal Association (NOMA) on April 26, 2013 in Thunder Bay, Ontario.

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I want to start with a simple statement: Northern Ontario can do better. I’ve done about 100 town halls now, including several in the North.

And as I travel the province, people tell me things are tough. They ask: “Is this really the best Ontario can do?” I say to them, we can do better.

Ontario has everything we need to succeed. We have a hard-working and skilled workforce. Dedicated and driven entrepreneurs. Vast and valuable resources and fertile farmland the envy of the world over. We border the great North American markets – natural trading partners with millions of consumers.

We have all it takes to make our province the best place to find a good job, raise a family, start a business and see it grow. But to get started on the path to a revitalized Northern Ontario, we need to be honest about the depths of the problems we face across the entire province.

More than half a million people woke up this morning with no job to go to.We’ve lost 300,000 good manufacturing jobs – while at the same time adding 300,000 government workers to the bloated public sector payroll in Ontario.

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Minister says Ring of Fire will be next oilsands – by Shawn Bell (Wawatay News – May 2, 2013)

http://wawataynews.ca/

The Ring of Fire mining development could be Canada’s next oil sands, says federal minister of FedNor Tony Clement.

Clement, who was appointed earlier this year as the federal government’s point man on the Ring of Fire, told the Huffington Post that the mining development will change northern Ontario for the better.

“It has the potential to transform what was hitherto a very poor, underdeveloped area of Ontario and give people who live there, particularly First Nations people, a chance for a decent life,” Clement said.

Clement, also Treasury Board president, said the Ring of Fire could eventually be worth $120 billion, including the smelter and additional economic activity tied to mining.

“You’re looking at $120 billion, right in line with the oil sands or some of these other major developments,” Clement said. Clement is not the first Conservative politician to compare the Ring of Fire to Alberta’s oil sands. Provincial Conservative leader Tim Hudak made similar claims in 2012 after visiting the mining area.

“In many ways, the Ring of Fire is Ontario’s oil sands – an enormous wealth beneath the earth that can break open a new frontier for job creation and investment in our province,” Hudak said in June 2012.

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Horwath says chromite mined in the North should be processed in the North – by Leith Dunick (tbnewswatch.com – April 26, 2013)

http://www.tbnewswatch.com/

Andrea Horwath says people are much more valuable resources than chromite. The NDP leader on Friday said in her mind that means resources mined in Northern Ontario should also be refined in the province.

“If you’re good enough to dig stuff out of the ground, you’re good enough to process it,” Horwath told the region’s leaders on Day 2 of the Northwestern Ontario Municipal Association’s annual general meeting.

“I believe unless government policy on processing and electricity changes, the benefits of the Ring of Fire are not going to trickle down to the Northwest.”

The current government simply isn’t laying down the infrastructure needed to ensure the multi-billion dollar mining project moves forward, and Horwath said there are no guarantees that First Nation communities will be engaged in either mining jobs or supply-chain spinoffs if and when the Ring of Fire ever gets off the ground.

“We’re concerned that there’s been a real lack of engagement in that regard, and that things are dragging on.” Pointing to electricity rates in both Manitoba and Quebec, Horwath said there is no way for Ontario to compete if something isn’t done.

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Hudak wants less bureaucracy – by Jonathan Migneault (Sudbury Star – April 27, 2013)

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

Reductions in government red tape and bureaucracy are amongst the keys to prosperity for Northern Ontario, said Progressive Conservative leader Tim Hudak during a recent visit to Sudbury.

Hudak said there 300,000 rules and regulations in Ontario that make it more difficult for the private sector to prosper. His party has proposed to cut those regulations by at least a third if he is elected premier.

Hudak offered his prescription for the province’s ills, and Northern Ontario’s in particular, during a town hall meeting with Conservative supporters at College Boreal on Saturday, April 27.

He said he wants to remove barriers to development in the north and singled out the Far North Act as a prime target to be abolished. “The Far North Act is nothing but a massive regulatory wall that it is going to bring development in the far north to a screeching halt,” Hudak said.

The act protects around 225,000 square kilometres – or around 21% of Ontario’s land mass – of boreal forest from development. The Liberal government passed the Far North Act in 2010, and Hudak said it has impeded the mining and forestry sectors.

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Ontario Conservatives say action needed in Ring of Fire – by Leith Dunick (tbnewswatch.com – April 26, 2013)

http://www.tbnewswatch.com/

Progressive Conservative Leader Tim Hudak says he’s convinced Northern Ontario is the province’s next frontier.

Hudak, who is expected to try to force an election after the minority Liberal government releases its budget next week, on Friday said as it stands there are too many obstacles in place for the Ring of Fire to prosper.

He’s worried the project will lie dormant if changes don’t happen in a hurry. “This isn’t once-in-a-lifetime. This is a once-in-a-century opportunity. It’s billions of dollars of chromite, copper, nickel and zinc that could provide jobs for 100 years or more,” Hudak said. “I’ve said it before and I’ll say it again. What the oil sands are to Alberta, what potash is to Saskatchewan, the Ring of Fire could be for our great province of Ontario.”

But talk is cheap. Action is needed, meaning a strong plan and the leadership to light up the Ring of Fire, Hudak said, promising to deliver an all-season access road to the project, located some 550 kilometres northeast of Thunder Bay.

The road would benefit not only the mining companies, but the First Nations communities surrounding it. Hudak also promised to make the development a cabinet priority.

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Ontario NDP say mine and refine in Ring of Fire – by Leith Dunick (tbnewswatch.com – April 26, 2013)

http://www.tbnewswatch.com/

Andrea Horwath says people are much more valuable resources than chromite. The NDP leader on Friday said in her mind that means resources mined in Northern Ontario should also be refined in the province.

“If you’re good enough to dig stuff out of the ground, you’re good enough to process it,” Horwath told the region’s leaders on Day 2 of the Northwestern Ontario Municipal Association’s annual general meeting.

“I believe unless government policy on processing and electricity changes, the benefits of the Ring of Fire are not going to trickle down to the Northwest.”

The current government simply isn’t laying down the infrastructure needed to ensure the multi-billion dollar mining project moves forward, and Horwath said there are no guarantees that First Nation communities will be engaged in either mining jobs or supply-chain spinoffs if and when the Ring of Fire ever gets off the ground.

“We’re concerned that there’s been a real lack of engagement in that regard, and that things are dragging on.” Pointing to electricity rates in both Manitoba and Quebec, Horwath said there is no way for Ontario to compete if something isn’t done.

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Golden opportunities ahead: mining report – by Carl Clutchey (Thunder Bay Chronicle-Journal – April 26, 2013)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Northwestern Ontario’s burgeoning mining sector is expected to create 10,000 full-time jobs over the next decade and bring in up to $1.7 billion in overall economic revenue each year over the same period, says an exhaustive report.

But Thunder Bay’s Mining Readiness Strategy also warns that the city, the province, outlying municipalities and Aboriginal agencies have a lot of work to do to prepare for the boom: energy needs, housing shortages, aging roads and sewers, and worker training are all areas that need to be quickly addressed.

The overall buoyant outlook in the report suggests that the region will not be left out when the province’s economic recovery kicks in, as was the case during the forestry crash.

Spearheaded by Thunder Bay’s Community Economic Development Commission, the study was deemed complete Thursday and posted to the city’s website.

The rosy forecast is based on 10 new mines or major expansions, nine of which are in the advanced stage of exploration, including the Ring of Fire, Stillwater Canada’s proposed copper and palladium mine near Marathon and Goldcorp’s Channel Gold project at Red Lake.

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The duty to consult [in Ring of Fire] needs support – by Shawn Bell (Wawatay News – April 25, 2013)

http://wawataynews.ca/

The tragedies of multiple suicides in Neskantaga, and the First Nation’s declaration of a state of emergency, should be a wakeup call for everyone involved in trying to push the Ring of Fire ahead.

If there ever is a time for people working in government and in the mining industry to step back and look at the big picture, this is it. Seven tragic deaths have shaken the community of 420 people over the past year. Another 20 people tried to end their own life but failed. Everyone is exhausted, emotionally and physically.

Meanwhile, as councilor Roy Moonias said, Neskantaga is under “overwhelming pressure” from mining companies and governments who want to negotiate with the community on the Ring of Fire mining development.

The situation taking place now is a repeat of what happened in December. At that time Neskantaga was also dealing with youth suicides. A crisis intervention team was in the community. Meanwhile the deadline to respond to the terms of reference on Cliffs’ Natural Resources environmental assessment was coming up quick.

At that time Neskantaga’s only option, if it wanted to respond to an environmental assessment on a project that could profoundly change northern Ontario, was to ask for an extension in light of “exceptional circumstances”.

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