Massive Black Horse Chromite Discovery

Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%

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Message: Province must build RoF road


Good irish1111 and it bears repeating.

Editors at the Chronicle Journal should be commended for understanding the Ring of Fire's economic significance to the province and the need for the province to show vision and provide infrastructure into northern Ontario, even during low commodities cycles.

However, the Chronicle needs to understand the facts.

No logging road will deliver the $50B worth of chromite from the Ring of Fire to market. The $10B worth of nickel can travel by road economically, but nickel alone will not justify the investment.

Ontario's $1B ROF commitment predicates a solution to which form, (road, rail or slurry pipeline) and which route or combination there of, (Northern East West, Southern East West or North South), is best for transporting chromite ore from the Ring of Fire to supply and deliver chromium concentrate, ferrochrome, and nickel at the lowest long term competitive world price.

Canadians and Ontarians should not be forced to pay for a large part of the private mine 'road, rail or pipeline' infrastructure, subsidize corporate electrical power rates and see a large part of semi-processed natural resources leave Canada.

'You have to keep your costs low with any project, let alone a project on this scale.', KWG Resources Ltd.'s vice president Maurice Lavigne said in Sudbury, Ontario, on April 3rd, 2014. 'A railroad drives down your cost, the gas drives down your costs' Lavigne told reporters after speaking to a noon crowd at a luncheon held by the Greater Sudbury Chamber of Commerce.

“We're going to make this project economically robust and we owe that to society.”

Lavigne said KWG doesn’t want to build a fragile industry that “shuts down one year and opens the next year and creates chaos in the communities.

“You've seen that, you know that movie, we don't want to do that,” he said.



Province must build RoF road

chroniclejournal.com
Daily Editorial
Monday, October 27, 2014

National media coverage on the Ring of Fire has been of the doom-and-gloom variety of late, but that doesn’t mean the province should throw in the towel on the idea for a main access road into the remote mineral rich zone.

Not surprisingly, in the wake of falling metal prices right across the globe, pundits and mining industry analysts have been questioning the RoF’s value. Maybe it’s not that rock-solid after all, the thinking goes.

But surely that thinking is flawed. It’s hardly a shock to discover that when mineral prices fall and stock values plummet, companies are no longer in a position to fork out the enormous upfront costs of building new mines.

Not until a mine is up and running is its proponent in a position to make operational changes, including temporary shutdowns, to ride out the industry’s inevitable ups and downs. A few years ago, North American Palladium wisely shut down its Lac des Iles mine north of Thunder Bay when the price of palladium plunged. It restarted the operation when the price came back up, casting the views of cynics aside.

Fortunes can also lead the other way. Some may remember when Inmet Mining caved on a major expansion at its former Schreiber zinc mine after prices for that mineral crashed. But none of that means the province should abandon a sensible plan to build a main access road into the James Bay lowlands.

We even have a rough idea of what an RoF road would cost because, to be fair to the Liberal government, it once offered to split the $600-million price-tag former RoF proponent Cliffs Natural Resources was prepared to spend on a north-south route.

Presumably the province has cold feet now because it’s loathe, in the absence of a major player like Cliffs, to get stuck with a 350-kilometre road that leads to nowhere. Except that it wouldn’t.

A main trunk route into the heart of the province’s Far North would become a vital link for numerous First Nations that must currently rely on dodgy winter ice roads. It would also set the stage for ramped-up mineral exploration, lowering the cost of bringing in heavy equipment for that purpose.

As we’ve said before on these pages, the fact that Quebec has a paved, year-round road into its remote North, and Ontario doesn’t, remains a glaring omission in this province.

Ontario can blame the federal government for not doing its share in the Ring of Fire all it wants, but it’s up to the province to take the lead on this file, just as Quebec did.

Leaning on the prospects for its RoF development corporation, which is what the province has done so far, falls short and comes off as a dodge.

Inevitably, a road would require delicate negotiations with affected First Nations, but surely that legwork could be incorporated into ongoing talks about land rights generated by the Ring of Fire itself.

And what better legacy for Premier Kathleen Wynne to leave — the first major route into Ontario’s Far North?

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