It looks like the RoF development is gaining some traction, despite the following concerns from Minister Rickford (quote from Rickford's responses)

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[He outlined what he describes as three key structural problems with Ontario's approach that "only the province can resolve."

• The slow pace of talks with First Nations on "own source revenue" also known as resource revenue sharing.

"They have a mandate to negotiate a mandate to negotiate," Rickford said.

• The Ontario Mining and Lands Commissioner's intervention on the potential north-south transportation route

"It shouldn't have even come to a decision anyway, but that stifled discussions around any road options that could also serve as electricity corridors," he said.

• The makeup of the Ring of Fire Development Corporation

Rickford said the federal government would be "loathe" to invest money "to park it in a development corporation that Ontario senior bureaucrats would administer... That's not an option for us, it's not an option for the First Nations, it's not an option for the private sector."

It is possible for a mining company and a First Nation to partner on a proposal to the Building Canada Fund without the province, Rickford said.

It would be "unfortunate" if the province were cut out of the opportunity to play a key role in the development but "we're not far off of that place," he said.]

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Tea leaf readings:

1. Negotiation between Ontario and FNs: Concrete outcome of key items is in the fog according to Rickford.

2. The N-S corridor: Rickford's remarks are cryptic, not sure exactly what he had in mind. He was saying, according to the tea leaves, the Province should have blocked CLF's application for an easement on KWG claims. Not only that, the Province should not have intervened via the AG to set aside the ruling of the Land's Commisioner (not granting CLF easement application). In order word what a mess the Province has created for (apparently) siding with CLF which could result in potential future litigation (KWG/and Ont Northland suing CLF and the Province for loss of opportunities). At the very least, it would result in poor optics of favouring a larger foreign company at the expense of a junior Canadian exploration company.

3. Rickford did not like the current Ontario Devco set up with 4 senior bureaucrats to overseeing billions of dollars with no transparent plan without the participation of other key players, including the Feds (if Ontario wants the Feds to drop some $B)

So what?

It sounds like Minister Rickford has something in mind. He wants

- a NS corridor developed, and this should be a multi-purpose development, roads, power,...(certainly not a private road for monster trucks that CLF wanted). He did not mention the RR, but this is obvious, since it should be possible to squeeze in a small service road along with the RR (just look at Quebec plan for its northern development, RR is everywhere, for heavy equipment, supplies and bulk shipping). But this development should not put anyone at a severe disadvantage, particularly KWG, since it has spent millions to develop this potential future business for its chromite assets (mining and processing using gas-powered super converter to produce value-added products).

What he does not want is a court case that would block or slow down drastically the development of the RoF. So, KWG has to be one of the key stakeholders.

- The FNs are another key stakeholders (Ontario can play a role)

- ONTC has a significant role to play. Its activities would be expanded with a NS RR. Hundreds of jobs would be secure (Ontario is not on the pension hook if the jobs are saved. In fact Ontario can collect more taxes from the working people)

- One or 2 deep pockets to get involved (KWG can line them up)

Bottom line: The Fed would take over the control. It would be a surprise to see the Feds propose a Federal Port Authority (or KWG/FNs/ONTC come to the Feds with a proposal) which has an overarching mandate with all key players sitting on its BoD. There will be plenty of room to the Province to sit in with its contribution (from the $1B commitment).

This would be a coup for the Feds with an election within 1 year. But Ontario can certainly claim some victory as well as a Defender of its own North.

Also, it would not be a surprise to see a change at ministerial level. The appointment of a Deputy Minister seems to be a sign pointing in that direction. We need a doer not a talker.

Just my tea leaf reading folks.

goldhunter