Ring of Fire map.

The Ontario government has said they'll inject up to $1 billion to develop a transportation corridor to the Ring of Fire.

But they're calling on the federal government to partner with them and match the funds to build the infrastructure needed for project pegged at creating jobs and boosting the economy of the north.

The announcement was made in Thunder Bay earlier this week.

Sault MPP and Minister of Natural Resources David Orazietti said as a Northerner, he's excited about the Ring of Fire opportunity for the region.

“We know the region is rich with mineral deposits and represents a multi-generational economic development opportunity,” he said. “Our government is committed to this development and we need the federal government to match our investment so that we can open up access to the Ring of Fire in a smart, sustainable and a collaborative way to crate jobs and ensure that Northern Ontario prospers.”

Orazietti said funding is important to access the site by the various partners because it's in an area devoid of most economic development.

The Ontario government is facilitating the creation of a development corporation to accelerate strategic infrastructure development in the region and bring together key stakeholders that will see the development move forward.

Those stakeholders include mining companies, First Nations and the upper levels of government to develop, construct, finance, operate and maintain infrastructure supporting access to strategic resources in the mineral rich Ring of Fire.

It will be that development company that partners together to determine the best access routes, access points and how to proceed, he said.

Estimated costs of the infrastructure are in the $2.2 billion neighbourhood, Orazietti said.

“It's the partners that need to make the collaborative decision on how to proceed, not just the provincial government,” Orazietti said.

The provincial government is calling on the federal government to invest in Ontario as it has with projects occurring in other provinces, including the off-shore oil project in Newfoundland, the tar sands in Alberta and hydro projects in British Columbia, among others.

“The federal government has failed to live up to their existing responsibilities in Ontario. They've walked away from many of them and they should have specific funding to contribute to this project as they did with other large economic projects in other parts of the country,” Orazietti said.

Orazietti said the federal Conservatives have walked away from funding the Manitoulin ferry, abandoned $2 million of experimental lake project and reduced health care transfers, among other things, that the province has since picked up.

Sault MP Bryan Hayes said he's supportive of the proposed development and has said the federal government should be actively involved in the development.

“That is why I was very pleased to see that the Conservative government, through Economic Action Plan 2013, budgeted $53 billion for provincial, territorial and municipal infrastructure over 10 years,” he said.

The federal government's $14 billion Build Canada Plan allows the province to apply for funding for projects of natural, regional or local significance and he would expect the Ring of Fire to meet the needed criteria.

Orazietti argued the province shouldn't have to apply for Build Canada Funds and that Ontario is being short-changed if the federal government doesn't allocate specific funding for this project.

The Ring of Fire is considered one of the most significant mineral regions in the province, and includes the largest deposit of chromite ever discovered in North America.

Projections suggest the development will create thousands of jobs and enhance the economic prosperity of Ontario and Canada.

Access to the remote region is very limited and a lack of a year-round transportation route and infrastructure has been a barrier to developing the region.

Last fall, Cliffs Natural Resources Inc., a large mining company interested in the development, pulled back because of the lack of movement with developing the needed infrastructure to access the site.

On March 26, Ontario and Mattawa member First Nations signed a regional framework agreement that will ensure First Nation communities benefit from the proposed Ring of Fire development.

In addition to chromite, the region also holds the potential for significant production of nickel, copper, gold and platinum.

Hayes said the project has the potential to provide significant economic benefits for Northern Ontario.

In addition, he said the Ontario Chamber of Commerce has estimated it would generate $9.4 billion in economic activity over the next 10 years, including the generation of 5,500 jobs per year during that period.

Tax revenues to all levels of government are projected at $6.7 billion over 32 years.

The Ring of Fire is located about 540 kilometres northeast of Thunder Bay.

http://www.saultstar.com/2014/04/29/province-asks-feds-to-match-ring-of-fire-investment