Re: Thunder Bay Council Looking at Ferrochrome Smelter.....NOT Nickel.
in response to
by
posted on
Sep 12, 2017 01:25PM
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Unless Baosteel, or should we say Baowu steel, has an take-off agreement with Noront I can only see RCF as being the strongest deciding factor in who the chromite will go to. As far as I know the last news release concerning any such take-off agreement with Baosteel is this one below:
http://norontresources.com/baosteel-resources-completes-strategic-investment-with-noront/
Quote from news release states:
The definitive agreement executed between Baosteel and the Company provides Baosteel with the right to nominate one individual to the Noront Board of Directors, a right to increase their ownership in Noront to 19.9% for a one year period commencing on May 2, 2012 and a standstill provision which expires on May 2, 2013. Baosteel has also been granted a 90-day exclusivity period to negotiate a direct property interest and/or off-take agreement with respect to any of Noront’s properties with such exclusivity period to commence any time prior to production at Noront’s discretion.
Currently I believe Baosteel, or rather Baowu steel, only holds a less than 10% interest in the company. So I question how much chromite they will receive, or other ores for that matter. Without a definitive agreement in place I think the chromite will go to whomever our money bags joint venture capital partner, or possibly buyout major decides. Eitherway, RCF's blessing as a 23%+ shareholder will be needed, and may pose as a means of controlling how much they receive, and the price of the off-take agreement. Cliffs is not in the mix IMO, but AcerlorMittal or Outokumpu may be judging by their aggressive North American and international positions in the stainless steel market.
If anyone has any better ideas then I welcome hearing them, or any other statements of fact to dispell my notions of what I believe may be possible.
TM.