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Ontario’s Ring of Fire Mineral Discovery

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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[Ring of Fire] Be Canada’s Next Oil Sands – by Daniel Tencer (The Huffington Post – April 26, 2013)

http://www.huffingtonpost.ca/

Ontario’s “Ring of Fire” mining project promises to be the economic equivalent of another oil sands, Treasury Board President Tony Clement says.

Clement, who was recently appointed the federal government’s point man on Northern Ontario development, said the giant mining project — which faces delays and opposition from some First Nations groups — would eventually expand to be worth $120 billion, when taking into account all the economic activity the planned mine and smelter would generate.

Clement made the comments at an editorial board meeting at The Huffington Post Canada on Thursday, during which he also discussed the controversy over the temporary foreign worker program, the Conservatives’ negative ads and what it means to be a politician in the age of social media (see below).

But it was his comments on the Ring of Fire — the name given to a massive planned chromite mining project some 400 kilometres north of Thunder Bay — that caught many at the meeting by surprise.

“You’re looking at $120 billion, right in line with the oil sands or some of these other major developments,” Clement said of the project, noting that other minerals besides chromite (an ingredient in stainless steel) have been found in the area, including nickel and copper.

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Ring of Fire activity heating up- Too hot to handle or just what junior resource sector needs? – by Junior Mining Network.com (April 22, 2013)

http://www.juniorminingnetwork.com/

When someone mentioned the term ‘Ring of Fire’ in the past it was typically associated with the volcanic activity outlining the Pacific Ocean.

Being that this area is home to roughly 75% of the worlds active and dormant volcanoes, the name seemed fitting.
Over the last decade however the term Ring of Fire has been given a new postal code- the James Bay Lowlands of barren northern Ontario.

Major discoveries, including the Black Thor chromite deposit by KWG Resources Inc. (TSX.V: KWG) in 2006 (now being developed by Cliffs Natural Resources [TSX: CLF]) and Eagle’s Nest deposit by Noront Resources Ltd. (TSX.V: NOT) in 2007, have transformed the once ignored swamplands into what is quickly becoming one of the most active exploration regions in all of North America.

Nearly 40 junior mining companies have tied up over 30,000 mineral claims across a 5,000 square kilometer area of prospective Archean terrain buried by younger Paleozoic sediments, which is now known among investor circles as the new Ring of Fire.

The term ‘Ring of Fire’ was initially coined by former Noront President and CEO Richard Nemis who, being a lifelong Johnny Cash fan, fittingly named the region after the songwriter’s 1963 best hits album because of the rimmed geological structure of the region.

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Angus disappointed with lack of [Ring of Fire railroad] plan – by Benjamin Aubé (Timmins Daily Press – April 11, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Members of the federal opposition were taking shots at a government “pipe-dream” this week – and for once it had nothing to do with oil sands.

MP Charlie Angus (NDP–Timmins-James Bay) said he was upset to look through the federal budget and see only cuts to rail service across the country.

He was particularly upset about the lack of mention of the James Bay Port Authority. The idea of a central, federally owned rail and infrastructure corporation — potentially located in the Moosonee region — was the source of much discussion within Northern municipalities, the federal government, and worker’s unions alike over the past year.

“I’m shocked,” Angus said. “I looked through the budget and there’s really no plan for Northern Ontario. One of the big promises being floated was to develop this James Bay Port Authority, and it was being proposed as a way of helping save Northern rail infrastructure. So what happened, where is it?”

On the heels of the provincial Liberals’ decision to sell off the Ontario Northland Transportation Commission (ONTC) in March 2012, followed by the cancellation of the Northland passenger train service in September 2012, there was uproar in Northern Ontario about the perceived lack of transparency and consultation.

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Opportunities for Northern Ontario’s Bioenergy Resources – by Dr. Peter Telford (April 17, 2013)

These remarks are from the CI Ontario Power Conference on April 17, 2013, during a panel discussion about the Ring of Fire and Northern Development: Addressing the Challenges of Generation, Transmission and Project Development in Northern Ontario.

Dr. Peter Telford

One of the many challenges for renewable energy, whether it be wind, solar or biomass, and why, with current technologies and economies, renewables will rarely be able to fully replace base-load power supplied by fossil fuels or nuclear, are the inherent limitations – the wind doesn’t always blow, the sun doesn’t always shine, biomass resources in their various forms are not always in abundant supply or in the right place.

In the past day and a half we have heard lots of references to wind and solar so I’ll focus these brief remarks on biomass which, of course, is the principal interest of my company. This is not intended to be a promo for Peat Resources Limited but I’m happy if the name catches your attention.

Biomass can be many things – wood waste from the forest products industry, dedicated agricultural crops, waste generated by other farming or food processing activity, or my personal favourite, peat, which has been used to produce electricity in Europe for many generations. While they have obvious environmental advantages, there are also limitations to these types of bioenergy resources competing economically with traditional fossil fuels – especially in this current time of very low natural gas prices.

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Confining processing to Ontario hurts mining – by Michael Gravelle (Thunder Bay Chronicle-Journal – April 20, 2013)

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

Michael Gravelle is the Liberal Minister of Northern Development and Mines

I appreciate the concerns raised by Carlos Santander-Maturana in his letter of April 17 (Priorities Lie Elsewhere). However, our government members voted against the private member’s bill, the Mining Amendment Act, precisely because we want to protect and encourage job growth in the mining sector.

Creating a protectionist environment by requiring all ore mined in Ontario to be refined in the province would neither protect the important mining jobs we have, nor encourage further investment in this key sector.

Ontario is one of the leading mining jurisdictions in North America and benefits greatly from the ability to move minerals across borders. Many other jurisdictions currently take advantage of the expertise and resources available in Ontario, shipping their minerals here for refinement.

Four of Ontario’s five largest mineral processing facilities receive two-thirds or more of their feed from outside the province and their economic viability, as well as the jobs they create, depend very much on the movement of minerals from outside of Ontario. This could be threatened under the protectionist environment this act would have led to.

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Priorities lie elsewhere – by Carlos Santander-Maturana (Thunder Bay Chronicle-Journal – April 17, 2013)

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

I am quite disappointed with my area MPPs who voted to defeat Bill 43, the Mining Amendment Act, which would add value to our extracted mineral resources by ensuring that the ore and minerals remain in Ontario for refinement (Chronicle-Journal, April 12).

What is really disturbing is the fact that our region could have benefited by the capital investment, and therefore the job creation, in smelters and secondary economic activities so important to our weakened industrial economic base.

Compared to value-added manufacturing, the non-renewable natural resources sector requires far fewer workers per $1 million-worth of output. Between 2001 and 2011, direct mining, quarrying, and oil and gas extraction sector employment increased by only about 90,000 while manufacturing employment dropped by 466,000.

Michael Gravelle, Minister of Northern Development and Mines and MPP for Thunder Bay-Superior North, said the proposed legislation would have removed “flexibility” for the mining corporations interested in our natural resources.

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Cliffs remains optimistic – by Carol Mulligan (Sudbury Star – April 19, 2013)

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

Developing its Black Thor deposit in the Ring of Fire continues to be “a viable business opportunity” for the Cleveland-based mining company, says its spokeswoman.

A Reuters story this week, suggesting Cliffs’ failing finances could jeopardize its $3.3-billion investment in the chromite deposit, is speculation, said Patricia Persico.

According to Reuters, Cliffs has been hurt by weak iron ore prices and higher than anticipated costs for a key project, Bloom Lake iron ore in Quebec. Part of that $3.3-billion investment is a $1.8-billion ferrochrome processing plant to be built near Capreol.

“Cliffs has not made any announcements contrary to what we’ve stated to date about our chromite project,” said Persico in an email this week. The feasibility study for the chromite project is expected to be completed on schedule, by the end of September, and “work on all fronts, including discussions with First Nations and the (Province) of Ontario, continue to be encouraging,” she said.

Cliffs is also working with the Government of Canada “on many levels” to move the chromite project forward, said Persico.

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First Nations ties should be grown from the inside out – Brodie-Brown – by Simon Rees (MiningWeekly.com – April 17, 2013)

http://miningweekly.com/

TORONTO (miningweekly.com) – Northern Ontario’s junior exploration and mining sector is facing challenging times and not just because of the current market turbulence. New amendments to the province’s Mining Act introduced on a voluntary basis in November 2012 became mandatory on April 1. The impact has left some companies reeling.

Under the new rules, those wishing to prospect and explore must now submit detailed plans to Ontario’s Ministry of Northern Development and Mines before work can start. Companies must also consult with affected landowners, surface-rights holders and, importantly, local First Nations communities.

Processing submissions and issuing permits should take between 30 days and 50 days, although the government reserves the right to extend the timeframe if additional planning or consultation is deemed necessary.

The resultant flurry of permit applications and consultation requests with First Nations bands have left many across the spectrum struggling to fulfil their tasks, the Toronto Star reported on April 12. Critically, those companies waiting for permits have suddenly found themselves in limbo; they are legally obliged to halt work until approval is given.

“Everything stopped April 1. The drilling company I’m involved with, Cyr Drilling, has 22 drill rigs and the two that were active in northern Ontario had to shut down,” Aurcrest’s president, CEO and director Ian Brodie-Brown, who has extensive industry experience working alongside First Nations partners, told Mining Weekly Online.

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ANALYSIS-Miner Cliffs woes could douse hopes for Canada’s Ring of Fire – by Allison Martell (Reuters U.K. – April 16, 2013)

http://uk.reuters.com/

TORONTO, April 16 (Reuters) – The future of Canada’s Ring of Fire, a remote cluster of rich mineral deposits in northwestern Ontario, is looking increasingly dim as the finances of its biggest private investor, Cliffs Natural Resources Inc, have taken a turn for the worse.

Crouched in swampy lowlands and named for a Johnny Cash song, the 4,000 sq km (1,500 square mile) zone has no rail lines, highways or reliable power. Canadian political leaders say the Ring of Fire could support a century of mining, but the cash-strapped government has yet to commit infrastructure funds.

But other challenges facing Cliffs may prove more difficult. The iron ore and metallurgical coal producer has proposed a $3.3 billion chromite project, including a $600 million highway that could open the region for smaller mining companies such as Noront Resources Ltd.

The project, Black Thor, would be North America’s first major chromite mine, and Cliffs touts the mineral – which is refined into ferrochrome, used to make stainless steel – as a natural next step for a company with long experience supplying the steel industry. But not everyone is enthusiastic.

“They have an infrastructure, logistical problem,” said Robert Yuksel Yildirim, president of Turkish industrial conglomerate and ferrochrome producer Yildirim Group, who considered investing in Black Thor.

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Cliffs’ excitement tinged with frustration in Ring of Fire – by Jody Porter (CBC News Thunder Bay – April 15, 2013)

http://www.cbc.ca/thunderbay/

Vice-president outlines two key hurdles to feasibility

The man in charge of Cliffs Natural Resources’ Ring of Fire project says two things need to happen before the company’s plans can proceed.

In an exclusive interview with CBC News, Bill Boor said he’s still waiting for a final agreement with the province to build a smelter in Sudbury and he said the company still needs to establish its surface rights to build a road to the mining area.

“The vision is very much intact,” Boor said of the American company’s plans to mine chromite out of muskeg in the James Bay Lowlands. “The mechanics of how to get there are very challenging and we expected that, but they continue to be challenging.”

Smelter deal yet to be finalized

Boor said talks with the province to finalize plans to build a chromite smelter near Sudbury were delayed because of the election. He said company officials have yet to talk with representatives of Premier Kathleen Wynne’s government. “As we approach a year since the agreement in terms, that’s become more of a concern,” Boor said of the plans to locate the smelter.

“Part of the uncertainty that lies right now is whether we’re going to be able to get in on time and get this deal done so that we can wrap up the feasibility study.”

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On April 11 MPPs debated Bill 43 – Mining Act – by Sarah Campbell MPP Kenora-Rainy River (April 14, 2013)

Sarah Campbell is a Canadian politician, who was elected to the Legislative Assembly of Ontario in the 2011 election. She represents the electoral district of Kenora—Rainy River as a member of the Ontario New Democratic Party caucus.

KENORA – On April 11 MPPs debated Bill 43, an amendment to the Mining Act intended to promote Ontario jobs.

While it did not propose sweeping changes, the Bill would have created transparency in the system that could be used to promote economic development and job growth in the mining sector.

The bill changed only one word in the Act – a provision that ensured ‘all minerals mined in Ontario must be treated and refined in Canada’ would instead read that ‘all minerals mined in Ontario must be treated and refined in Ontario.’

The Act currently- and would still- allow for exceptions to be granted by the Minister of Northern Development and Mines. The only difference being that the Minister would have to explain and defend his or her decision to allow processing outside of Ontario.

This would force the government to publicly acknowledge policy and infrastructure shortcomings that renders the province at a competitive disadvantage. It would, at the same time, provide Ontarians with an important opportunity to address these challenges and provide for better long-term planning that can lead to successful job growth strategies.

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Bill to process minerals in province quashed – by Jonathan Migneault (Sudbury Star – April 12, 2013)

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

“There will be an increasing demand for resources in the next few decades,” Sudol said.
With more resource scarcity, Sudol said, other jurisdictions would have to play by Ontario’s
rules if they want access to its ore deposits, and that could include conditions to process
that ore within the province.

The Ontario Liberals and Conservatives voted Thursday to defeat a private member’s bill that would have amended the Mining Act to require any resources mined in Ontario also be processed in the province.

The bill was introduced by NDP MPP Michael Mantha, that party’s Northern Development and Mines critic, and was defeated after second reading by a vote of 70 to 18.

“My bill would have given Ontario’s mining industry a bright future,” Mantha said in a release after his bill’s defeat. “By keeping our resources in the province, there is the potential of job creation in many sectors. We would ensure that the unprecedented wealth of resources in the Ring of Fire is used to create good value added jobs for Ontarians.”

Mantha introduced Bill 43, An Act to amend the Mining Act to require resources to be processed in Ontario, to prevent situations like the closing of the Xstrata copper and zinc metallurgical plants in Timmins three years ago.

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Keep riches here [in Ontario]: MPP – by Bryan Meadows (Thunder Bay Chronicle-Journal – April 12, 2013)

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

Thunder Bay-Superior North and Kenora-Rainy River MPPs were on opposite sides of the fence Thursday when debating two private members’ bills at Queen’s Park.

Following debate late Thursday afternoon, MPPs defeated Bill 43: Mining Amendment Act (Resources Processed in Ontario), and approved second reading of Bill 42: Ombudsman Amendment Act (Children’s Aid Societies).

Bill 43, introduced by NDP Northern Development and Mines critic Michael Mantha (NDP-Algoma–Manitoulin), would have required ore and minerals mined in Ontario to remain in the province for refinement. Currently, companies can apply for an exemption from exporting restrictions, allowing them to send raw material anywhere in the world to be processed.

Following the vote, Mantha said the defeat of his bill shows that Liberal and Conservative MPPs are not serious about job creation. “My bill would have given Ontario’s mining industry a bright future,” he said.

“By keeping our resources in the province, there is the potential of job creation in many sectors. We would ensure that the unprecedented wealth of resources in the Ring of Fire is used to create good value-added jobs for Ontarians.”

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