Processing or/and direct shipping?
posted on
Jul 15, 2012 03:30PM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
Poster pickdawinner posted this Sudbury Star article on the other board:
http://www.thesudburystar.com/2012/07/14/the-ring-of-fire-politics-and-intrigue
"Let's not forget Newfoundland's epic David and Goliath battle with Inco, in which the permits for the Voisey's Bay nickel deposit were not given until the company committed to refining all that ore in the province. And more recently, Saskatchewan's right-leaning, pro-mining government opposed the sale of Potash Corp. to a foreign miner. Government intervention in massive resource development projects is not necessarily bad."
If ever Inco (Vale) had then the possibility to do both, that is, refining the ore in NF from one mine, and shipping abroad the ore from a second mine...
The RoF chromite deposits are huge, like 100 years of non-stop mining! Cliffs could end in having to commit processing all the Black Thor chromite in Ontario.. They would be advised then to get a free ticket to be allowed to freely ship the Big Daddy chromite (to China and other countries). Don't forget that "Mineral ores may not be processed outside of Canada without a prior exemption from the Lieutenant Governor in Council. (Mining Act - Ontario)" The Government will certainly be presented with its duties regarding this protective disposition at some point... When this discussions come -if they ever come- I will be happy to have KWG shares in my portfolio!
Cliffs having kept its 17% shares in KWG certainly has to do with this possibility that both deposits could end up being mined together. They know from the beginning that they will have to cope with the Mining Act requirements. The Black Thor flagship is actually serving Cliffs as a diversionary test, a scapegoat, that they could at worst fully commit to refine its ore in Canada, while insuring that Big Daddy be exempt from this commitment... Just talking, guys! A bit of rambling in this sticky, hot afternoon!
GLTA.
BaBe.