http://www.timminspress.com/2018/07/23/sault-claims-political-edge-in-bid-for-noront-plant

 

SAULT STE. MARIE - All hands on deck.

That’s the message Sault Ste. Marie politicians are sending to Noront Resources as the city is one of two communities shortlisted for a ferrochrome facility.

The other is Timmins.

While the next step is up to Noront and Algoma to reach a contractual agreement or memorandum of understanding detailing how the two companies would work together, politicians are offering their support to the parties.

An agreement between the two companies will need to outline commercial terms and conditions as well as services Noront and Algoma could potentially share or participate in.

Sault MPP Ross Romano said he sat down with Noront’s top executives Thursday in an hour-long meeting offering his support and assistance as the Toronto-based firm continues with its due diligence process and works at brokering lease agreements with its shortlisted sites.

The former Kidd Operations copper smelter in Timmins is the other shortlisted site the company is working with.

Romano and Mayor Christian Provenzano believe that Sault Ste. Marie’s presentation of its “A path forward” proposal impressed the Noront executives and answered all of their questions.

“We’re the only city who had all levels of political support at the presentation,” Romano said.

He said Sault Ste. Marie’s advantage is the size of the brownfield site, equipped with the necessary infrastructure and close to all transportation routes including water, rail, road and the international border.

“There are so many synergies that can be created with Algoma because they use similar products in their processing facilities,” Romano said.

The city’s ability to provide a skilled workforce and the cost of creating a plant in Sault Ste. Marie are also in the Sault’s favour, he said.

Sharing a site with another industrial operator with similar inputs and outputs can lead to cost savings for both companies, Provenzano said. Both productions use coal and slag and a site and equipment already operational with those materials creates a significant advantage.

The key now, he said, is for the two companies to determine whether a memorandum can be inked and for Noront to develop its blueprint to determine what a ferrochrome plant would look like on the site.

Once that is determined, a community engagement process with residents and First Nations can begin that will educate the community, explain permitting processes and explain how state-of-the-art ferrochrome facilities operate.

Provenzano envisions the city and Noront partnering together to develop an education process including information about the site's operation and environmental protection.

The mayor was scheduled to have a telephone conference with Noront executives Friday as part of their process to stay in touch and receive courtesy updates.

Romano said the concerns Noront Resources may have had with Algoma’s CCAA status are now behind them. Initial concerns suggested the company had no assurances that the eventual purchaser of Algoma would be prepared to lease the necessary lands to them. The parties have been brought together and it is now understood they are working towards a common goal that benefits the community to alleviate those concerns.

“From my first day in office, I made it clear that I would do everything in my capacity as the local MPP to make this happen,” Romano said.

He said dozens of face-to-face meetings with Noront and key partners like the CEO of Algoma, Port of Algoma, United Steelworkers Local 2251 and Local 2724 took place.

“I am ecstatic that because of all of my team’s efforts, we were able to resolve Noront’s concerns surrounding CCAA and compete in this bidding process. Our government and our community is fully committed to making this happen. This is a top priority,” he said.

During the spring provincial election campaign, now Premier Doug Ford said he supported Sault Ste. Marie’s bid for the ferrochrome facility.

“It’s important the Premier of Ontario has endorsed Sault Ste. Marie for the site and believes it would be a great location for it, but in the end it is Noront’s decision and the government can’t strong-arm a company decision,” Romano said.

Both Romano and Sault MP Terry Sheehan will be called upon to lobby their perspective governments during the lengthy and costly permitting stages.

“I’m sure they will both be very busy if we get that far,” Provenzano said.

Before that happens, Romano said a road needs to be built to the Ring of Fire location and his government is committed to working with First Nation communities to ensure construction to allow access.

“Without a road, we don’t have anything,” he said.

Meanwhile, Timmins Mayor Steve Black believes his community has all the key ingredients Noront is seeking for the ferrochrome plant’s location that includes a site, advantages with capital costs and the permitting side. Its property, however, is not located near any water transportation body.

Provenzano said obviously both communities are competitive and showed their advantages in their presentations to Noront.

“I don’t have any reason to believe Timmins cost structure is more competitive to Sault Ste. Marie’s,” he said. “In the end though, it will be Noront who will assess and determine their preferable site. Romano said Noront has visited Algoma’s site as recently as two weeks ago and he has been told that meetings with Algoma went exceptionally well.”

From his standpoint, Romano said various ministries are doing their part to help Algoma emerge from CCAA and address environmental matters, capital expenditure and pensions.

“I’m encouraged by the leadership that has been show and I believe Algoma will be moving forward to a conclusion soon,” Romano said.

Noront is expected to make their final determination for a site location by the end of the year.

A ferrochrome facility would process chromite from the Ring of Fire. Chromite is used to make stainless steel.