Threats to pull out could impact North Bay 0

By JENNIFER HAMILTON-MCCHARLES, The Nugget

Wednesday, November 4, 2015 4:04:36 EST PM

Fedeli's fears came after the Financial Post reported Noront Resources Ltd. warned the Ontario government and First Nations communities that it will stop work unless it can show some progress to its investors.

The company has spent millions on the Eagle's Nest project in the Ring of Fire.

Work and spending could stop by end of December if progress isn't made.

Fedeli said Cliff's Resources, the company that sold its Ring of Fire assets to Noront for a fraction of the cost, initially spent $700 million on the project.

Fedeli said a lot of that money was spent on drill rods and bits.

“North Bay was the exploration capital when we had companies like Sandvik. When Cliff Resources stopped exploring in the Ring of Fire 12 drill and rod bit companies suffered drastically,” he said.

Noront Resources Ltd. is estimated to have spent $200 million in the Ring of Fire.

“If exploration stops again North Bay will take another hit,” Fedeli said Wednesday.

Mayor Al McDonald echoed Fedeli's concern.

He said this is the mining sector's longest downturn.

“The Ring of Fire project needs to move forward. It's a once in a generation find. We need to do what we can to get people back to work.”

Northern Development and Mines Minister Michael Gravelle argues Noront remains committed to the project.

“Nobody is arguing it's a complex and complicated project. I understand it can be frustrating and challenging,” he told The Nugget from his office in Queen's Park.

Gravelle said the story about Noront threatening to stop work made him pause, because that same day, Noront issued a news release Tuesday announcing it's started an exploration program close to its Eagle's Nest Mine in the Ring of Fire.

According to the release, following a thorough review of its exploration data, the company is initiating this program to test high priority targets within three kilometres of Eagle’s Nest.

“We are very happy to be exploring in this highly prospective area once more. One of the reasons it was important for Noront to consolidate the land position was to continue with this exploration effort in a systematic fashion,” stated Alan Coutts, President and CEO of Noront Resources.

Gravelle said there's no doubt Noront would like to see the project move along quickly, but “we have to do it right.”

“We, the provincial government, are absolutely committed to this project.”

Fedeli said the province should be ashamed taking two-and-a-half years to approve the terms of reference for an environmental assessment when it should have taken 45 days.

“That's exactly what is wrong with this government,” he said. “Companies can't wait on reannouncements they want action.”

http://www.nugget.ca/2015/11/04/threats-to-pull-out-could-impact-north-bay