Twitter
Boston-Bay-Mines-Announcement

Ontario’s Ring of Fire Mineral Discovery

NEWS RELEASE: Ring of Fire could be stainless steel powerhouse: Bisson

QUEEN’S PARK – Timmins-James Bay MPP Gilles Bisson made the following statement in the provincial legislature today about the Ring of Fire mining development.

“We’ve listened to this government now in three budgets—probably three or four—and at least two throne speeches talk about the wonderful opportunity that presents itself in the Ring of Fire in northern Ontario. We have some of the best mineralogical ability in that part of the province when it comes to chromite, when it comes to nickel, when it comes to other metals.

“We’re looking at this government and saying, ‘Where have you been for the last three or four years?’ There is an opportunity here to position Ontario as a stainless steel producer. You need chromite, you need nickel and you need iron ore, all things that belong here in Ontario, and if all we’re trying to do is to create a mine up in the Ring of Fire, I think we’re selling Ontario short. We should be trying to position this as a stainless steel play for the province of Ontario.

Read more

The Honourable Tony Clement Minister for FedNor PDAC [Ring of Fire] Speech March 3, 2013

(L to R) Ross Gallinger, Executive Director, Prospectors and Developers Association of Canada (PDAC); Tony Clement, President of the Treasury Board, FedNor Minister, Federal Ring of Fire Lead; Peter Kent, Minister of the Environment; Glen Nolan, President, Prospectors and Developers Association of Canada (PDAC)
(Photo by envisiondigitalphoto.com)

SPEECH TO THE PROSPECTORS AND DEVELOPERS ASSOCIATION OF CANADA (PDAC) International Convention, Trade Show and Investors Exchange (Toronto, Canada – March 3, 2013)

CHECK AGAINST DELIVERY

Like every region where mines have been developed across Canada and around the world, this
part of Northern Ontario is unique.Its marshy wetlands have been home to First Nations
for thousands of years. And their communities and their experience are unique to them.And
it is incumbent upon the mining industry to understand those circumstances, engage those
communities and be able to appreciate their perspective. (Federal Minister Tony Clement
– PDAC March 2013)

Thank you for that kind introduction and good evening. It’s a pleasure to join you here today at the start of Canada’s premier mining conference. In fact, this event is recognized right across the globe and for good reason.

With over 30,000 visitors expected to attend from 125 countries, the conference clearly demonstrates the importance of the sector to the global economy, but it also highlights Canada’s role as a world leader in mining innovation, technology and responsible environmental stewardship.

First, I wish to thank the organizers of the Prospectors and Developers Association of Canada for inviting me and for providing me this opportunity to speak with you this evening.

Read more

Get certainty into [northern Ontario] mining – Thunder Bay Chronicle-Journal Editorial (March 3, 2013)

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

CITY, regional, Ontario and national officials are almost giddy over the prospects of mining development here in Northern Ontario. All levels of government are dealing with economic challenges that result in political challenges due to financial difficulties faced throughout society. Particularly in the North where opportunities for success are relatively limited, the prospect of a new mining boom has rightly got everyone thinking about the good times to come. Well, almost everyone.

If there is one thing that business doesn’t like it is uncertainty. In another time, mining interests would stake wilderness territory, test for minerals and, if the results were good, plan a mine. They got their permissions from the province and maybe dealt with Ottawa on environmental issues.

Today, First Nations are demanding a say in where and how mines are developed and how their communities can participate and profit in mining development. And so they should. This represents an unprecedented opportunity to lift First Nations out of poverty, providing employment and economic stability. But turning this opportunity into reality is proving most difficult.

There is no template to negotiate agreements among mining companies, First Nations and governments. In fact, First Nations don’t want one. Most band councils appear intent on making their own arrangements in their own time and many resent government trying to intervene to move parties toward agreements.

Read more

Tony Clement’s Ring of Bad Policy – by Peter Foster (National Post – March 1, 2013)

The National Post is Canada’s second largest national paper.

Ontario’s ­development restrictions are the real problem

Last week, Tony Clement announced that he would become the Federal government’s point man on the “Ring of Fire,” the area of the James Bay lowlands in Northern Ontario estimated to contain between $30 billion and $50 billion worth of mineral potential.

No dancing in the streets was recorded in any Northern Community.

Mr. Clement, President of the Treasury Board, was claimed to be a good choice because he already heads FedNor, the Northern Ontario regional development agency. You remember FedNor … No, actually, you probably don’t. Like all regional development agencies, it is worse than useless, unless you believe that bailing out obscure cheese factories — or indeed any business — is a good use of taxpayers’ money.

Perhaps Mr. Clement’s most significant association in the public mind is as the minister who used funds attached to the appallingly expensive 2010 G8/G20 meetings to install gazebos in his riding of Muskoka/Parry Sound. Muskoka may look like the North from the intersection of Yonge and Bloor, but from Cochrane or Thunder Bay it’s just a Toronto suburb.

Read more

Rail cheaper than road for Ring of Fire: study – by Shawn Bell (Wawatay News – February 27, 2013)

http://wawataynews.ca/

A new study of transportation options for the Ring of Fire has determined that building a railway would be cheaper option over the long term than shipping ore on an all-weather road.

KWG Resources, a mining company that has long promoted the railway option for the region, commissioned the study. According to the study, the cost of building a rail line over the 330 kilometers between the Ring of Fire and Nakina is nearly $1.5 billion, while the cost of building a highway comes to just over $1 billion.

However the operating costs of a railway line were significantly lower than those of highway shipping, due to the high cost of equipment, maintenance and labour associated with shipping ore by road.

The study estimated that the extra cost of building a railway line would be covered by the savings in operating costs in six years, at the base case for mining production.

“This analysis brings out the features that the rail option is more robust, low maintenance, cost-reflective and demand-responsive to operational and market conditions than the road option,” the study stated.

Read more

NDP want northern Ontario mine to bolster local steel industry – by Jody Foster (CBC News Hamilton – February 25, 2013)

 http://www.cbc.ca/hamilton/

Changes to Mining Act required to turn Ring of Fire chromite into Ontario stainless steel

The provincial NDP wants to see a vast mineral deposit in northern Ontario used to benefit the province’s steel industry rather than offshore interests. The so-called Ring of Fire mining area in the James Bay Lowlands is believed to contain about a quarter of the world’s chromite, the main ingredient in stainless steel.

American company Cliffs Natural Resources is the biggest player in the Ring of Fire. Its most recent investor update shows nearly half of the raw ore mined in northern Ontario is destined for China, while the rest will be shipped to a proposed smelter in Sudbury.

NDP MPP Gilles Bisson said Ontario should develop its own stainess steel industry, instead of sending the raw ingredients overseas.

“Rather than having jobs at the mine and maybe 300 jobs at a ferrochrome facility [in Sudbury], we could end up having tens of thousands of jobs in the stainless steel industry,” Bisson said.

‘You can’t just feed chromite into Stelco or Dofasco’

The Timmins-James Bay MPP admits the plan would take a change in the Mining Act, allowing Ontario to force companies to process minerals within the province.

Read more

Cliffs plays political waiting game – by Ian Ross (Northern Ontario Business – February 22, 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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

Cliffs Natural Resources could scale back into its spending in the Ring of Fire if “uncertainties” associated with its chromite mine project in the James Bay lowlands aren’t ironed out with Queen’s Park.

With provincial negotiations in a stalemate, the Cleveland-based miner is re-evaluating this year’s budget to advance its $3.3-billion Black Thor chromite project. The company has set aside $60 million to complete its feasibility study of its proposed open pit mine, roughly 500 kilometres northeast of Thunder Bay.

“I can’t really go to the board of directors and ask to them to move out of the feasibility phase of the project until we’ve wrapped up some of these uncertainties,” said Bill Boor, Cliffs’ president of ferroalloys.

While Boor remained confident the feasibility study will be wrapped up as planned by late summer, some next-phase construction moves may be put on hold. “What’s possible is we might demobilize some of that effort and not be prepared to move into execution at the end of feasibilty.”

Read more

Rail over roads the way to go for Ring of Fire: Study – by Jeff Labine (tbnewswatch.com – February 22, 2013)

http://www.tbnewswatch.com/

Railway infrastructure, and not an all-season road, is the best option for Ring of Fire development a recently released study concludes.

KWG Resources Inc. released the study, conducted by international engineering firm Tetra Tech WEI Inc., Thursday that compared the capital and operating costs of a railroad and an all-weather into the massive chromite deposited in the lower James Bay area.

The estimated cost for a roadway is $1.05 billion compared to the $1.561 billion for a railroad. While the initial cost of railway infrastructure may be greater than that of an all-season road, the study suggests rail services come with long term savings because of shipping costs.

If 5 million tonnes per year are shipped it’s estimated that operating costs per tonne would be reduced to $6.33 for the railroad and $69.28 for trucking. Noront Resources Ltd. Chief Operating Officer Paul Semple heard about the study but hadn’t had a chance to look it over before tbnewswatch.com contacted him Thursday afternoon.

While he agreed the long-term savings of a rail line would be greater than an all-season road, Semple said the big question is by how much.

Read more

Clement steps in [to the Ring of Fire] – Thunder Bay Chronicle-Journal (February 22, 2013)

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

MINERS have tried. The Ontario government has tried. Now it’s the federal government’s turn to search for a way through the minefields hampering development of Northern Ontario’s highly-promising Ring of Fire mineral deposits. Ottawa appears to have given up hope that players already at the table can agree on how to proceed. Many discussions to date have been acrimonious as mining groups, First Nations and provincial representatives grappled with staking rights versus treaty rights. Exploration teams have been ordered off land claimed by First Nations.

The province has tried and, in most cases, failed to facilitate agreements on issues that fall under its jurisdiction. There are notable exceptions but the success stories are fewer than the harsh disagreements over who can do what, where and when.

Prime Minister Harper this week assigned Tony Clement, Minister for the Federal Economic Initiative for Northern Ontario (FedNor) to broker environmental, industrial, transportation and other issues alongside the expectations of First Nations. He must respect court decisions around the duty to consult those communities and be mindful of the fact this isn’t solely his responsibility.

While both senior governments have aboriginal, infrastructure, resources and northern development departments, Queen’s Park governs the central issue of land use while Ottawa bears responsibility for lands under treaty. In this case, it’s much the same land.

Read more

NEWS RELEASE: Tetra Tech Trade-Off Study Favours Rail to Ring of Fire

Click here for the Tetra Tech Trade-Off Study: http://www.kwgresources.com/_resources/Rail_vs_Road_Tradeoff_Study_Report_FINAL_11Feb2013.pdf

TORONTO, ONTARIO–(Feb. 21, 2013) – KWG Resources Inc. (TSX VENTURE:KWG) (“KWG”) has released a study that it commissioned by the international engineering firm Tetra Tech WEI Inc. to compare the capital and operating costs of both a railroad and an all-weather road to the Ring of Fire. The study estimates the capital costs for a roadway at $1.052 billion and a railroad at $1.561 billion. If 3 million tonnes per year are shipped, operating costs are estimated at $10.50 per tonne for the railroad and $60.78 per tonne for trucking on the road. If 5 million tonnes per year are shipped, it is estimated that those operating costs per tonne would be reduced to $6.33 for rail and $59.28 for trucking.

The complete study has been posted on the KWG website: www.kwgresources.com and should be read in its entirety to understand the assumptions made by the authors of the study in order to derive the foregoing conclusions.

About KWG: KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite where resources are being defined in a drilling program this winter. KWG also owns 100% of Canada Chrome Corporation which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the Ring of Fire from Exton, Ontario.

Read more

Optimistic start: Area chiefs meet with minister Tony Clement – by Jamie Smith (tbnewswatch.com – February 20, 2013)

http://www.tbnewswatch.com/

THUNDER BAY — Peter Moonias says he’s feeling optimistic after a meeting with the federal government. Moonias, chief of Neskantaga First Nation, and other Matawa leaders met with lead Ring of Fire federal Minister Tony Clement in Thunder Bay Wednesday at the Travelodge Airlane.

Moonias made headlines last year when he said he was willing to die in order to stop development in the Ring of Fire unless the provincial government started meaningful consultation with First Nations.

But if industry shows a willingness to work together, so can the communities, he said. He added that the first step is to get the federal and provincial governments to understand that First Nations are treaty partners not stakeholders.

Another brief news clip from February 21, 2013: http://www.tbnewswatch.com/Video/26653/Clement-Matawa

Read more

Lack of transportation plan hurting Ring of Fire financing – by Ian Ross (Northern Ontario Business – February 20, 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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

The lack of a coherent plan to develop transportation infrastructure in the Ring of Fire is hurting the exploration financing scene in Ontario, insists a leading international business law firm.

Fasken Martineau issued a December bulletin that the Toronto Stock Exchange (TSX) has taken the position not to list companies with exploration projects in global regions where there is no authoritative plan to move raw and bulk product to market. This pertains to junior miners operating in Ontario’s Far North, the firm said in a statement.

The bulletin states, historically, a National Instrument 43-101 technical report establishing “economically interesting grades” of mineral resources on a property was usually good enough to satisfy the TSX. But not anymore.

Fasken said the TSX now wants assurances that bulk products, such as concentrate, can be shipped to market by roads, rail or via port facilities. “We understand that the TSX has recently turned down the listing application of several companies in the Ring of Fire and in Quebec, because of concerns about the availability of infrastructure.”

Read more

Clement won’t allow Ring of Fire to be ‘mired in uncertainty’ – CBC News Thunder Bay (February 19, 2013)

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

Tony Clement calls mineral-rich Ring of Fire project a ‘complex, generational opportunity’

Tony Clement, Canada’s Treasury Board president and FedNor minister, has officially taken on federal responsibility for the massive Ring of Fire mineral discovery in northern Ontario.

Speaking Tuesday afternoon to members of the Thunder Bay Chamber of Commerce, Clement said he would be co-ordinating the government’s engagement with stakeholders, in conjunction with several federal ministries such as Aboriginal Affairs, Industry, Natural Resources, Environment, Health, and Infrastructure.

Clement said he is very familiar with the development because he is also responsible for FedNor, the regional development agency for northern Ontario. The minister told reporters he planned to meet soon with first nations’ leaders to discuss issues concerning the Ring of Fire.

Project will be ‘complex’

Clement said he didn’t expect his new job to be “easy-peasy,” but he added he is looking forward to moving the project ahead. Clement called the mineral-rich area in northwestern Ontario “a generational opportunity,” offering the prospect of several decades of mining and thousands of jobs.

Read more

Fedeli ‘disappointed’ [Ontario Speech From the Throne] – by Jennifer Hamilton-McCharles (February 20, 2013)

http://www.nugget.ca/

Northern Ontario was only given passing reference in the 17 pages of Tuesday’s Throne Speech, says Nipissing MPP Vic Fedeli.

“I’m very disappointed. There can’t be anyone in Northern Ontario that is happy with a half sentence in 17 pages,” he said Tuesday afternoon following the speech.

“I would have liked to hear specifics about the ONTC. Maybe that they’ve realized they’ve made mistakes, will hit the pause button and do a strategic review of all assets.” Fedeli said he also wanted to hear the government promise to keep rail freight in public hands.

“That would have changed the scope of Northern Ontario,” he said. “It’s very frustrating.” Transportation needs in the North and improving transportation to the Ring of Fire in Northwestern Ontario were among a list of priorities in Tuesday’s Throne Speech.

However, what that means for the Ontario Northland Transportation Commission remains unknown. Fedeli said the Throne Speech was a real opportunity to acknowledge the government is on the wrong track. Instead, he said it sounded very familiar – like former Premier Dalton McGuinty.

Read more

Tony Clement takes on responsibility for controversial Ring of Fire – by Peter Koven (National Post – February 20, 2013)

The National Post is Canada’s second largest national paper.

TORONTO — The federal government is winning accolades for finally naming a point man on the Ring of Fire, a massive mining development in Northern Ontario with many complex issues to unravel.

Tony Clement, president of the Treasury Board and head of a federal development organization for Northern Ontario, announced Tuesday that he will take the lead role on the file. He said he was asked to do so by the prime minister.

“There is a lot at stake and we cannot afford to allow this development to stall and become mired in paralysis and uncertainty,” he said in a speech in Thunder Bay.

The Ring of Fire, located in the James Bay Lowlands, is thought to contain $30-billion to $50-billion worth of minerals and is poised to be North America’s first significant source of chromite. A large mining company, Cleveland-based Cliffs Natural Resources Inc., is prepared to spend more than US$3-billion to build a mine and key infrastructure in the region.

The discovery of the Ring of Fire created a brief euphoria in 2007 and 2008 as the potential economic benefits of the region sunk in. But development has been extremely slow since then. Cliffs, along with the federal and provincial governments, have struggled to manage very challenging issues around First Nations involvement, environmental management and infrastructure.

Read more