Noront president SHOULD rule out SAF ferrachrome smelter but not Natural Gas Super Chromite Reducer for Thunder Bay

Let's not be goofy and start this all over again!

I have much respect for retail Noront investors, Allan Coutts and Noront's efforts towards meaningful partnership with our First Nations. However, after the BNN interview and understanding the real reasons why Coutts is pushing his "Just get to first base" idea for the Ring of Fire infrastructure, a 'sea-change' will not occur until Noront realizes what key unlocks their 'to be modified' Environmental Assessment door by the provincial government.

The Ring of Fire regionality requires environmental sustainable resource mining and should endeavour to follow the Regional Strategic Environmental Assessment model, R-SEA or at the very least, an integration of SEA-CEA into CEAA 2012.

Despite his argument downplaying the north south esker route due to the number of river crossings, a comprehensive access plan into the northern boreal area at a regional scale should be established and pre-planned for the $50B chromite, along with the $10B nickel.

There is no room for baby steps in this large regional legacy multi-century project. Solve the chromite transportation problem and then nickel transport is also solved.

The nickel is easy. The 150k/t/yr can travel either of the two different two proposed east-west routes by all-season light-weight road but the $10B alone does not justify even starting any form of RoF infrastructure. Both the chromite and nickel revenue streams are required immediately to support the large regional development.

However, 4M/t/yr of heavy chromite concentrate per year, only valued at $200/t, and ferro-chrome at $2,858 CAD/t, can not travel on any east west road. Trucking the chromite concentrate on the only feasible route south by esker to Nakina costs ~$60/t/yr ($1.1B CAPEX), by rail ~$10/t/yr (B$1.8 CAPEX). By chromite slurry pipeline it's about ~4/t/yr ($600M CAPEX).

Trucking is far too costly and not good environmentally. Rail is economically feasible over 100 years but has a high CAPEX, same environmental issues and 5m/t/yr does not justify a short term rail solution.

The answer and only "Just get to first base" solution is a north-south light-weight service all-season road lines coupled with a buried chromite slurry and natural gas pipeline(s) beneath underneath the road with topside electrical transmission lines. The esker is too narrow to accommodate both industrial road, rail and electrical or natural gas power.

Using pipeline and the new gas-fired reduction reactor in Nakina for the direct reduction of chromite concentrate, (more that 50% cost saving over Primus SAF), and a second parallel pipeline bringing natural gas north to two gas-fired electrical generating stations, will be very world competitive, even in today's chromite and ferro-chrome market.

A pipeline solves First Nation environmental concerns of a north south railway, and the supplementary connected First Nation east west route providing social license through provision of needed road, power and communication infrastructure to mine and local communities respecting conservation environmental models.

This would allow for a connected east-west “forestry road” to Pickle Lake, connecting Webequie, Marten Falls, Neskantaga, and other local Matawa First Nation, an extension of the Ontario Northland Railway (ONR) from Hearst to Nakina, and a stainless steel production facility. - Laura Brown


Noront president doesn't rule out ferrachrome smelter for Thunder Bay

tbnewswatch.com
By: Leith Dunick (3/23/2015)

The president and CEO of Noront Resources is not ruling out a ferrachrome smelter landing in Thunder Bay.

Alan Coutts on Monday said Monday nothing is written in stone, after his company spent $20 million to acquire more than 100 claims previously owned by a pair of Cliffs Natural Resources subsidiaries.

Cliffs had originally said Sudbury was its preferred location for the processing plant.

“We haven’t settled on anything yet,” Coutts said in an interview with CKPR Radio, adding there is no guarantee the facility will even be built in the province.

“We would like to see that upgrading of the chrome wars happen in Ontario, but a smelter is a big investment. It’s a very energy-intensive process and you’d need to see some really good electricity rates as well.”

Coutts said he plans to speak to the province about energy cost, but it’s far too soon in the process for nay firm decisions.

“But we’re looking at this from a fresh viewpoint and all options are open, essentially.”

Noront is on record favouring an east-west corridor being built into the Ring of Fire, which would link to the project via Pickle Lake.

Mayor Keith Hobbs said he's had discussions with Noront about their smelter intentions and remains optimistic Thunder Bay would be a good fit.

"A ferrachrome processor would be a boom to Thunder Bay's economy. I can hear the naysayers already though. Noront can process the chromium here put it on ships or rail and away we go," Hobbs said, reached by email.

"While we're talking processor let's go all the way and talk about manufacturing stainless steel here as well. Anything is possible. We have a mining readiness strategy in place and the partnerships formed already. Fort William First Nation is a willing partner as well and we have industrial lands available. Just look at Resolute sawmill, for instance."