Thomson Reuters






TORONTO, Sept 11 (Reuters) - Miner Cliffs Natural Resources
Inc has lost a key land dispute at a Canadian tribunal
that could cause more problems for its already troubled Black
Thor chromite project in northern Ontario's mineral-rich Ring of
Fire.


Cliffs cannot build a proposed highway to the wilderness
region without the consent of tiny rival KWG Resources Inc
, which has staked claims along the route and wants to
build a railway instead, the Ontario Mining and Lands
Commissioner said in a decision dated Sept. 10 and posted online
by KWG. []


Cliffs spokeswoman Patricia Persico said the iron ore miner
is considering its options, including appealing the decision. It
was not immediately clear what body would hear an appeal.


"It does put the project in jeopardy," said Persico, who
noted that the highway is a "necessary" part of Black Thor.


Cleveland-based Cliffs suspended its work on the $3.3
billion Black Thor project in June, citing stalled talks with
the provincial government and other political and regulatory
problems. It has struggled to win over aboriginal communities in
the region.


The Ring of Fire is a cluster of mineral deposits that
political leaders in Canada have said could support a century of
mining. But the remote region, about 1,500 km (1,000 miles)
northwest of Toronto, has no rail lines, highways or reliable
power.


Chromite, which is refined into ferrochrome and used to make
stainless steel, is heavy, so infrastructure is a major
challenge. A highway could open up the district for smaller
companies such as Noront Resources Ltd, but Cliffs is
not willing to shoulder the full cost of building it, pegged at
about $600 million, without government help.


TSX Venture-listed KWG, with market capitalization of about
C$35 million ($34 million), is exploring for chromite in the
Ring of Fire, and says a rail line offers better value for
money. The two sides are fighting over a single route because
there is very little high ground or gravel in the swampy region.