Massive Black Horse Chromite Discovery

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

Free
Message: Re: Factum Econtra
4
Dec 19, 2013 04:04PM
6
Dec 19, 2013 06:52PM
2
Dec 19, 2013 07:41PM

Hello LauraB,

First, Happy Holidays to you too!

Second, an excellent find that took me quite a bit of time just to skim through...very interesting reading with a stiff neck (just kidding, I had that diagram printed out and turned it around 90 degree, also I have rotated 90 degree electronically as well). The factum is not that difficult to read, but you would need to bite your tongue while reading the one-sided (sometimes illogical) arguments presented.

Third, here are some comments and key points.

- The bottom line, item 70 from Factum (pasted below):

(a) is obvious, but look at

(b) costs of this appeal and of the proceedings before the MLC. So, CLF thinks offence is the best defence? Be prepared to fork over the legal costs of the proceedings before the MLC to CCC, over $1M?, plus whatever else that would cause CCC/KWG to spend more money on lawyers,etc..., including this appeal, if they are dragged into it.

---------snip from Factum----

70. Cliffs respectfully requests that the Order of the MLC be set aside and that an Order be
granted as follows:
(a) Dispensing with CCC's consent pursuant to s. 51(5) (now s. 51(3)) of the Mining
Act, and permitting Cliffs' easement application to the Minister of Natural
Resources pursuant to the Public Lands Act;
(b) its costs of this appeal and of the proceedings before the MLC; and
(c) such further and other relief as to this Honourable Court may seem just.

--------snip

- One of the key point is the "public interest" component. Was that's why CLF proposed a "private road" for monster trucks to carry ore from the RoF to the outside world, and the public would not be allowed to use it. Even if we postulated that CLF had a change of heart to make it a "semi-private" road, allowing the public to use it, then it would be "use it at own risk" (i.e. be prepared to be squished by monster trucks, because they are difficult to stop, especially in bad weather)?

- It's understood that legal arguments presented in the appeal is for a favourable ruling, but the arguments are often one-sided (you would need to have a quick read to appreciate how blatant they are). For example, CLF seemed to think that BT is the only game in town and their proposed $3.3B project with the cost contribution of building their private road (public interest?) and electricity rate subsidy (public interest? while the rate for the public is going up) would be the only possible proposal for the RoF (for huge profits to the company).

- This transportation corridor is not for CLF to decide, based solely on its own interest to develop BT. They recognized that KWG is interested to develop the 30% of BD, but CLF is not interested, since it's holding the other 70%, even though the BD deposit has better grade hence would be more economical to develop first. What CLF did not want to say is that this is a brutal business and anything goes in order to weaken a potential competitor (so that the 30% could potentially be acquired for a song?).

This infrastructure development is an important (election) issue and both levels of government will need to get involved to justify it, keeping the public interest component in mind (certainly, not a private road).

NOT has emerged as a leading company in the RoF with CLF put its plan on indefinite hold. They have Ni and precious metals and a possible JV between NOT and KWG to develop BB and BH chromite deposits. Let's not forget PRB BC. There are also many other companies in the area. They all need to transport the stuff in and out, especially the ores out in bulk. And it has been demonstrated that transportation bulk material by rail is significantly cheaper compared to roads.

- A hypothetical question: What would happen if CLF decides to get out of the RoF all together? Since yhey are not obligated to justify their decision to us, they could just drop it (having no money would be a good reason, but they don't even have to provide any reason) and there is nothing we can do about it. In other words, their obligation to the people in Ontario = zero. And we can't drag them to court over this.

goldhunter

Share
New Message
Please login to post a reply