Re: Trains or Trucks for the Ring of Fire??
in response to
by
posted on
Jul 19, 2014 09:16AM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
Using trains or trucks is not the burning question in the debate over the Ring of Fire’s transportation options. Trucking that much chromite ore or even it's concentrate over that period of time is not economical, given the distance and types of terrain.
The important question is "Which business development plan produces and delivers the most favourable long term competitive world price of chromium concentrate, ferrochrome and nickel, while properly addressing social concerns and environmental issues?"
Deloitte must analyze the financial statements of the various submitted mining plans by deposit. Their report might conclude that building a chromite ore transport corridor must be started at the very beginning of the project, given total income, expenses and ROI of the entire value of ROF's $10B and $50B nickel and chromite deposits respectively. Auditors tend to focus on materiality in decision making and reporting.
Simultaneous development of KWG Resources Inc.'s "Southern" East West road integrated into a North South rail or slurry pipeline and it's natural gas direct reduction process of chromite ore, translates into the most economic, social and environmental ROF transport infrastructure for Ontario. The "Southern" East West road would service all of the communities below Pickle Lake and all of the nine First Nation communities who signed the Matawa framework agreement.
Ontario could select a hybrid model of a "transportation authority" instead of a "development corporation", as recommended by their own Northern Policy Institute. This would automatically bring in the Federal Government's guarantee on ROF bond interest rates and foster 3P funding. The ONTC could be made into a non-share capital corporation similar to Canada's Port and Airport Authorities, by adopting the proposed bill "Northland Development Corporation Act".
Ontario's $1 billion pledge to develop an all-season transportation corridor to the Ring of Fire should be, in part, to purchase ROF bonds from the "Ports Authority", not a handout to any one particular company. ThyssenKrupp is willing to purchase some of those bonds. Glencore, Baosteel and the pension funds will naturally follow.
This all translates into less project risk for the Ontario tax payer, while still participating in it's wealth. It also means the transport corridor is open to all, publicly held, not controlled by one particular company.
A consortium of companies made up of Noront, KWG, Bold, and possibly even a newly directed Cliffs and others should be engaged to represent corporate interests on the Transport Authority Board. Sharing the decision making will be First Nations, the various departments and agencies of the government of Ontario and it's partnering ONTC, the government of Canada, municipalities and environmental organizations. All interests must be represented.