I was talking with a buddy of mine from Hearst, and he was telling me that the Agrium fertilizer mine south of Opasatika (approx 30 miles east of Hearst) was going to be closing in the next two years.
This mine opened in 1999 or 2000(I forget). They have shipped approx 30-40 cars per day from this site to Alberta.
Th ONR (Ontario Northland Railway) built a spur line off their main track at Opasatika, 28 miles distance to the mine site. They pick up the product from the mine and deliver it to CN Rail at Hearst, and CN then transports it the rest of the way to Alberta.
They built this 28 mile spur track for approximately 20 years of mine life, now looks like only 13-14 years.
This is a substanial amount of the revenue, they generate. In addition with the closing of the Xstrata smelter at Timmins, they will be handling less concentrate from other parts of the country. As well they will not be producing sulphuric acid and will be losing this revenue as well.(Used to be a train per week.) Not to mention they are shipping a lot less paper from the mills at Kapuskasing and Iroquois Falls.
So you ask, what does this have to do with us. With all this loss of revenue they will have to do something, and I believe they will become the owner/operator/partner of the new rail line from Nakina/Exton to Mcfaulds lake.
I know KWG/Canada Chrome spoke with the ONR a year and a half ago, however nothing was ever disclosed from these meetings, that I am aware of.
So if the ONR built a 28 mile rail line for 20 years at roughly 150 to 200 carloads per week, why wouldn't they build a 180 mile rail line for over 100 years at an initial 500 carloads per week. The 500 carloads are just for the amount of chromite to supply the North American market, nothing else.
So Santa, all I want for Xmas is an announcement, from the Ontario Govt.