Miskealp,
Yes SSMarie is possible without LLAc to TBAY line, in fact traffic for the Sault would not go on that route.
Traffic would run from Nakina to Oba on CN main line. It would then travel from Oba to SSMarie on the Old Algoma Central Line now owned by CN.
As for traffic to Sudbury and points east. Nakina to Sudbury on CN main line approx 440 miles.
West Coast traffic Nakina to Vancouver or Prince Rupert CN main line.
By losing the Longlac to T Bay line will mean significant additional transportation costs, if the smelter is going to be built in T Bay.
I'm guessing Cliffs/Kwg must have costed this out, if the rumour had any validity.
Perhaps someone who has a contact at KWG could ask them if they are aware this line is in the removal stage.
Tks RR