Staked land for railway.
Photo: KWG Resources
Staked land for railway.

KWG subsidiary to appeal court order waiving its consent for land easement

By: Henry Lazenby
14th August 2014

TORONTO (miningweekly.com) – Ontario-focused explorer KWG Resources on Wednesday announced that subsidiary Canada Chrome Corp (CCC) would seek permission from the Ontario Court of Appeal to appeal the July 30 decision of the Divisional Court of the Ontario Superior Court of Justice that ruled that CCC's consent should be waived in an application for an easement to build a road over its mining claims.

In its decision in the appeal brought by 2274659 Ontario Inc, a subsidiary of US-based Cliffs Natural Resources, the Divisional Court set aside the set aside the decision of the Ontario Mining and Lands Commissioner issued September 10, and granted the original application to dispense with CCC’s permission for an easement over its mining claims.

The Divisional Court reasons held, in part: “Whether or not it is in the public interest to grant an easement for a road is a matter for the Minister of Natural Resources to determine, after an environmental assessment and consultation with First Nations and other affected interests.

“It is for the Minister to determine whether the easement should be granted in the public interest and on what terms. CCC will be able to participate in that process.”

Elsewhere the judgement held: “I would add that the issue being decided under s.51(4) of the Mining Act does not deprive CCC of its ability at the next stage to oppose Cliffs’ easement application or to ask for conditions that would protect its legitimate interests in its mining claims.”

LEGAL LOGGERHEADS

The remote Ring of Fire in the McFaulds Lake area of the James Bay Lowlands – about 540 km north-east of Thunder Bay – has attracted much attention over the past couple of years, with exploration drills turning for minerals, including chrome, nickel, copper and platinum-group metals.

It also presents an unprecedented opportunity for job creation with long-term benefits for communities in the North and the entire province.

But the region, where more than 20 companies hold claims, needs infrastructure, most critically transportation infrastructure, to turn it into Canada’s newest mining camp. It is estimated that the region needs about C$2.25-billion in transportation and industrial infrastructure.

KWG, through CCC, controls the key transportation route on land, which it acquired through claim staking in 2009. KWG has proposed a rail route connecting to the Canadian National transcontinental rail line at the Exton rail siding to transport ore to consumers, competing with its US-based joint-venture partner Cliffs Natural Resources, which has proposed an all-weather road south connecting to the same rail line west of Exton. Cliffs’ plan is to transport chromite concentrate by rail to Capreol, in the Sudbury area, where it plans to build a ferrochrome production facility.

However, Cliffs in November last year announced that it would suspend indefinitely its $3.3-billion Black Thor chromite project, citing the uncertain timeline and risks associated with developing the necessary infrastructure to bring this project on line.

Cliffs had also become embroiled in a legal battle for access to mining claims held by KWG, over which the only viable access route to the chromite deposits could be constructed.

KWG subsidiary to appeal court order waiving its consent for land easement

By: Henry Lazenby
14th August 2014