Speculation of where the Chromite will be processed has been ongoing since Cliffs first got involved in the ROF.

My memory is not what it used to be, but I will attempt to recall what I can. Anyone can correct what is wrong.

1)Thunder Bay.......

This was first discussed as the most likely location. There were discussions that Cliffs was looking to buy the CN line from Longlac to Thunder Bay.(Approx 200 miles.)

Longlac is 30 miles from Nakina. This failed to happen, and the rail line has almost completely been removed at this time.

Then there was discussion that Thunder Bay didn't want the smelter in their back yard.

2) Sault Ste Marie........

There was also discussion that the ore would be shipped to the upper penisula(USA) near some of Cliffs other locations.

3)Nakina/Exton.........

There was talk about Cliffs purchasing the Buchannan mill at Exton(5 miles from Nakina) where the rail line from McFaulds would enter the CN main line.

One of the biggest costs is going to be the transportation costs to move this ore to a smelter. Keeping this in mind, Exton would be the most logical location.

However two things come to mind which will be a problem at present.

1)The huge amounts of electricity required to run the smelter.

2)The local infastructure in the Nakina area,ie: Housing, workers, food, etc.

Possible solutions 1... apparently they are now going to install two dams on the Jackfish River, (located 75 rail miles from Exton)instead of the one that was originally planned.They could utilze the CN right of way to run the power lines.

I have no idea how much power these dams would be able to supply, so this may in fact not even be possible.

Herb any ideas or comments on this?

As far as #2 this could be resolved over time so is not really an issue.

Here are some distances by rail to these locations.

Nakina/Exton to.

Thunder Bay Approx 750 miles.

SSMARIE Canada Approx 400 miles + the distance to the location in the USA.

Timmins approx 550 miles

Sudbury for our nickel-copper and iums approx 450 miles.

Rail Rates are usually by the mile, and I have no idea what the rates could be.

When this first sufaced I tried to get some idea of what the cost per carload would be, and the account manager I spoke with never got back to me.

As per the Nakina airport, one of my fellow workers told me that they were going to lengthen the runway and put up three new buldings.This was a couple of weeks ago, and I thought I had posted it to the board.When this news surfaced today I realized I hadn't. My apologies.

RR