There seems to be a race between the 2 cities, Sudbury and Timmins. Here are some facts

- CLF proposed to build the electric arc smelter in Sudbury;

- Now there is a possibility for KWG and partners to re-open (?) the Kidd Creek smelter in Timmins which used to belong to Falconbridge and taken over by Xstrata (which was merged with Glencore).

- But, Sudbury may still have another shot at the opportunity to bring business to the city ginven that Vale is planning to close down one of the 2 smelters (to save some $1B, see link below). Perhaps, one the the smelters could be modified to handle chromite ore from the RoF. This may be a cheaper solution. Sudbury is closer than Timmins, hence lower transportation cost; but the the initial cost of the smelter modification would have to be considered depending on factors such as the co-operation of the current owners of the smelters with KWG/partners.

Folks, pick your horse in this race. Mine is Xstrata/Gllencore and the main reason: their desire to monopolize the chromite market. Plus the fact that the $1B saving is from the cost arising from from fixing up the furnaces to comply with the environment requirements (it would cost ~$2B to do 2 smelters, so simple math says do only 1 furnace and save a cool $1B). Large companies like Vale and Xstrata/Glencore are simple minded. Their BoD would look only at the big items (they can only count in Bs (billions), that can save/or make big bucks. Closing down a large (smelting) operation would displace hundreds of workers, but that would not be their concern. The key thing is to make money...No charity here.

http://www.northernontariobusiness.com/Around-the-North/130107/Vale-cuts-Sudbury-smelter-to-single-furnace.aspx

It may get even more complex with Xstrata having a JV with Vale to take over the 2nd furnace, and modify it for burning off the unwanted components in the chromite ores with gas, etc.., etc...

BTW, would it be economical to bring LNG to the RoF for a smelting operation right there? Anyone?

goldhunter