Re: Canada Chrome Corporation Seeks Leave to Challenge Order Permitting AGO to...
posted on
May 15, 2014 10:57AM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
BananaB,
As I recall, KWG claims are not over the entire length and there are a few "broken links". But I would say this is a minor issue. Of course the land owners (or the claimants) must be fairly compensated (the key word here is "fairly"). If the demand were exhorbitant and way beyond a reasonable price then KWG can go to court for a ruling (there was one case where a lone holdout was asking for $ millions for his house while the rest of his 100's neighbours have settled...the company went to court and the guy lost, and had to sell for a similar price), or the Province can appropriate the lands with some fair compensation (presumably), especially in a case where public interest is paramount, like the RR and a small (public) service road.
It would be beyond my comprehension if the Province would side up with CLF, even Deloitte say the "private road for CLF" is the best thing since sliced bread. Taking the claims away from CCC/KWG to please CLF is like committing suicide for any party in power after the election.
- Public uproar about supporting a private road over a public transportation system (RR and small service road);
- A court case would be expected, KWG versus government for unfairly treatment for choosing a foreign company, which is in turmoil due to shareholders' revolt (the main part of that is to divest all foreign holdings including those in Canada), under at least 3 class-action suits for mis-management and mishandling of shareholders' money. In addition, the company is almost in a bankrupcy status, so the chance for CLF to cough up with $3.3B (which is greater than its current Mkt Cap) to develop BT is practically nil. In fact, the company has announced the the BT project is suspended indefinitely. The CLF ship is practically dead in the water.
So, there is no point for Minister Gravelle to mention CLF as a potential RoF developer (he did in the TVO video conference). Unless, the Lib has secretly promised CLF $600M for 50% of the private road and this promise is in an e-mail to CLF (and CLF has printed out a copy as keepsake). But, presumably this is conditioned on CLF coming up with the other $600M and the rest of the $3.3B? If not the Lib will be in for another scandal.
"To do it right" for the RoF development (someone will choke reading this phrase) the government will look at the overall picture, not just a commitment for a private road for the benefit of a foreign company which has no chance to proceed with its grand scheme of digging up the chromite and transport it to an electric-arc $1.8B smelter.
This electric arc furnace is an electricity guzzler, hence will be much more expensive than the gas-powered plant proposed by KWG. As I recall, Minister Gravelle also promised highly subsidized electricity rates (for CLF electric arc furnace) which will cost Ontario tax payers $bilions.
Enough ranting for the morning.
goldhunter