Massive Black Horse Chromite Discovery

Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%

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Message: ROF Rail opinion

I've been thinking over the weekend (family always cringes when I say that). While the jury is out on road vs railway, the rail option does make a lot of sense for the government, and long term development. The Ontario Northland Railway is a tool of the Ontario government for both economic and social objectives. ONR is laying fiber to connect remote communities, and would be a natural operator for a northen rail line.

On the other hand if I were either Cliffs or Noront, I would not want to have my future tied to KWG. If either one or both of them gave signs that a railway was their preferred option, then the government might reduce their infrastructure investment and tell them to sort it out between them all. KWG would have too much of an advantage in commercial negotiations, and the $2B price tag is sure to increase. Neither Noront nor Cliffs could afford to risk their projects on KWG.

On the other hand, if the Ont government was the one to push the railway, then they have the clout to bring all the players to the table for an equitable solution. They would be the ones negotiating with KWG rather than CLiffs or Noront. The Feds may also be more attracted to a railway to provide a hub that could connect a variety of first nation communites by secondary roads.

Can anyone buy into this? or is it just wishful thinking? Is their any consensus developing amoung first nations on their preferred option?

Lakeside

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