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Message: Province looks to end Ring of Fire stalemate

Province looks to end Ring of Fire stalemate 0

By Carol Mulligan, Sudbury Star

Sunday, November 10, 2013 9:32:43 EST PM

Photo supplied Prospectors from KWG Resources take samples in the Ring of Fire in this file photo.

The province is looking to end the stalemate over how to build a transportation corridor to the Ring of Fire chromite deposits by establishing a development corporation.

Details are vague about the corporation announced Friday by Northern Development and Mines Minister Michael Gravelle.

But the province is taking the lead -- something critics argue it should have done years ago -- to bring together mining, community, first nations and other partners, including the federal government, Gravelle said Saturday.

The corporation's first job is to make a "clear decision" on the transportation corridor and use that as a vehicle to finance the project, said Gravelle.

The corporation would manage the design, engineering, construction and maintenance of the infrastructure needed to bring mines in the Ring of Fire into operation.

Premier Kathleen Wynne has written Prime Minister Stephen Harper asking the federal government to make a substantial investment in $2 billion or more needed to build a transportation system and mine infrastructure.

Gravelle said there's been no word from Harper or Kenora MP Greg Rickford, federal lead on the Rick of Fire, but they will be asked to share part of the investment.

The province has initiated individual conversations with potential partners and will eventually bring them together to discuss their common interests, said Gravelle.

It is clear they have at least one -- and that is the Ring of Fire itself.

The Ring of Fire, about 540 kilometres northeast of Thunder Bay, is one of the largest chromite deposits in North America. It's not just a provincial treasure, but a national one, said Gravelle, with an estimated $60 billion in resources and a mine life of up to a century.

The development corporation is based upon a model in northern British Columbia where a resource road, the Sierra Yoyo Desan, was built in a partnership between the province, and the forestry sector, and oil and gas companies.

"There's lots of work to do to pull this together, but we need to break the log-jam," said Gravelle.

The decision by the Mining and Lands Commissioner recently not to grant Cliffs an easement over claims staked by KWG highlighted "the challenges of companies working together," said Gravelle.

Cliffs has been pushing for a north-south all-weather road while KWG, which staked claims along the best north-south route, prefers a rail option. Cliffs is appealing that decision.

Moe Lavigne, vice-president of exploration and development at KWG, said his company is pleased with the creation of the development corporation and the fact the province is assuming the role of co-ordinator.

With everyone at the table, his hope is there will be synergies and that a vision for the Ring of Fire will emerge.

"This is what's lacking right now. There's no vision on the Ring of Fire, and I think by having all the right people at the table ... there's a chance that vision might be created."

Algoma Manitoulin MPP Michael Mantha, the New Democrats' Northern Development and Mines critic, was left shaking his head Friday, trying to figure out what Gravelle's announcement meant.

Mantha concedes a development corporation is a good thing, but said it should have happened five years ago.

When Mantha asked for a briefing on it, he was told by Gravelle's staff it was too early because they still had to get stakeholders together.

"That's what really concerned me," said Mantha. "Why the heck have we not been bringing the stakeholders together (already)?"

His worst fear is the corporation "is a plan to develop a plan to implement a plan, and we keep spinning our wheels."

carol.mulligan@sunmedia.ca

Ring of Fire

  • The Ring of Fire, located 540 kilometres northeast of Thunder Bay, is one of the most significant mineral regions in Ontario and the largest chromite deposit in North America.
  • It also holds the potential for significant production of nickel, copper and platinum.
  • It is estimated it will cost about $2.25 billion to develop a transportation corridor and industrial infrastructure to mine the deposits.
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