Re: cliffs road versus rail???
in response to
by
posted on
Apr 30, 2012 01:11AM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
LauraB, Throrough reply, nicely done. However, you seemed to be 100% sure about the future and the willingness of McGuinty to plough right through this political swamp just to please CLF. Here are some detailed feedback.
- "CLF will not need to negotiate, as Ontario will grant them easement right to BT mine site".
It's always good to negotiate to achieve a win-win resolution. Steam rolling may not flatten KWG. If they feel oppressed or treated unfairly they could always go to the court with a lawsuit even against the government...and nobody, including CLF and the government, really wants that to happen. Automatic granting of an easement on somebody's claims (and the claimant, KWG, has spent millions of dollars to prepare it as a transportation corridor) is not as simple as it seems to be. Besides, KWG would not just take it lying down. An easy way out for CLF would be to start a TO, as it already has 17.4% of KWG, but it has to keep in mind that there are more than 10% (see share count) of the votes that would oppose an "unfair" TO, hence they cannot initiate a compulsory tendering process.
- "The RR would draw too much attention to the environment, and trigger need for special EA/EAA approvals. CLF will build the RR after it controls the ROF and the $1.5B GR/YR will give them the cashflow to do it."
Two points (a) It sounds as if it is perfectly OK to have a major road built in this sensitive area without going through a thorough environmental review. And the road will have 100 monster (70 tons) trucks a day mowing down whatever on their path (imagine during a snow storms) passenger cars, moose, caribou, etc... Just one accident would cause serious havoc to this road;(b) a RR could be considered as national and major project (just like the pipeline) which the Fed may want to take under its fast-track initiative. Fed funding subsidy would not need to go through the 3P program. The Fed would find the money if it considers the project important enough for the development of natural resources and the FN communities. In addition, there are deep pockets standing around ready to jump in to develop the RR now (rather than waiting for the cash flow from CLF mining operations). The RR is a cash cow, at least the OMERS people would think so. You build and they'll come.
- "The deck is stacked against KWG and the FN".
It would be difficult to prove that this is a fact, but CLF and the government (Ontario) would not want to mess around with shareholders of a Canadian company and our FN folks. Besides, CLF may want to keep KWG happy...for their own advantange.
A road will be build along with the RR. This road will serve as a service road for the RR, the power and communications corridor, and passenger cars, Note: Wind turbines could be built along this road as well, as done in many European countries... and tie them to the transmission line...this would be just like music to the ear of our Premier. But, this road will not be for a daily convoy of 100 monster 70-ton trucks which will tear up the road surface in no time, and will mow down everything in their path during accidents and in bad weather.
goldhunter