NOB: Rickford, Gravelle meet on Ring of Fire
posted on
Jan 29, 2015 08:58AM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
KWG Resources Ltd. and its engineering firm Krech Ojard & Associates engaged Nuna Logistics Limited, of Edmonton, Alberta, a leading Aboriginal logistics, mining and heavy civil contractor specialized in working in the far north, to develop logistics scenarios and cost estimates for the Ring of Fire railroad construction program.
Based on completion of a preliminary economic evaluation of the surrounding Ring of Fire geography, a $12 million (USD) winter geotechnical program, concurred that both operating costs and capital costs of constructing a heavy cargo carrying rail line within low-lying marsh areas and other rail supporting structures to carry heavy freight cars and locomotives safely across east west low-lying wet areas was prohibitive.
Krech Ojard & Associate’s engineers provided field reconnaissance of the whole project area producing a map narrowed down to just three possible alignment alternatives. Out of those three routes, only one proved feasible for an approximate 210 mile (338km) heavy rail line in Northwestern Ontario, Canada.
KWG’s had staked all three corridors but retained only the winning route, which runs almost entirely atop a glacial esker, a long gravel ridge. It is the only lengthy 'north, east, south or west' elevated and dry ground out of the James Bay swamps which happens to lead north south to the Canadian National Railway’s main line near Nakina.
All those connected to the promotion of this development want the Mushkegowuk Crees to share the enormous benefits along with the Matawa First Nations and other NAN Nations.
However, the Mushkegowuk Council must understand that the fundamental issue has always been the supply and delivery of chromium concentrate, ferro-chrome, and nickel at the best long term competitive world price while obtaining social license through provision of needed infrastructure to mine and local communities respecting conservation environmental models.
The Krech Ojard Nuna Logistics Ltd. north south Nakina rail route which sits above the peat bogs is best for transporting chromite ore from the Ring of Fire to supply and deliver chromium concentrate, ferro-chrome, and nickel at the lowest long term competitive world price.
Progress in the Ring of Fire – or the lack of it – was on the agenda of federal Natural Resources Minister Greg Rickford and provincial Northern Development and Mines Minister Michael Gravelle during a meeting in Ottawa, Jan. 27.
Rickford, Gravelle meet on Ring of Fire
By: Northern Ontario Business staff
1/28/2015
In their first “constructive” meeting of 2015, a joint news release stated the ministers discussed funding arrangements to extend transportation infrastructure into the isolated Far North region to support mining and improve access to remote First Nation communities.
The two sides have been at an impasse on how to work together in the James Bay lowlands where exploration has ground to a halt and the biggest explorer, Cliffs Natural Resources, has abandoned work and seems likely to leave Ontario.
The Wynne government has accused the Harper government of dragging its feet in matching Ontario’s $1 billion infrastructure commitment for development of the mining camp, while Ottawa has chastised Queen’s Park for its lack of a detailed plan from its much-maligned Ring of Fire development corporation.
The news release said discussion focused on the Ottawa’s $53 billion Building Canada Fund, set aside for provincial and municipal infrastructure, including “legacy resource development projects like the Ring of Fire.”
Both Rickford and Gravelle agreed on the importance of maintaining in close contact on this file and promised to meet again soon.
Briefly on the agenda was discussion of an online Ottawa media report that said the Prime Minister’s Office was “interested” in a proposal by TGR Rail of Toronto to support a concept being floated by the Mushkegowuk Crees involving an eastern rail access route into the Ring of Fire combined with a James Bay seaport to ship out chromite ore to market. The rail company further made it known it wanted to buy the Ontario Northland Railway to make it happen.
The Ontario government responded that the Crown agency will remain under public ownership.
In responding to the media report, Chris McCluskey, Rickford’s spokesman, said while the federal government “welcomes new proposals for specific, tangible projects to develop resources in the region, the feds haven’t expressed any views on this proposal.
“The Government of Canada recognizes that the purchase of the Ontario Northland Railway is a matter of provincial jurisdiction. We respect provincial jurisdiction."
Early last year, the province signed an exclusive framework agreement with the Matawa First Nations of northwestern Ontario that set up a road map, through consensus, for how the Ring of Fire would be developed.