Not sure how old this article is but it certaily can be used as reminder that reinforces the huge potential production of chromium found on both FWR and NOT's land.

INTERESTING READ FROM IBK CAPITAL CORP.

Base Metals Sector - Chromium

Chromium’s primary use is in the production of ferrochrome alloy, which in turn is used to make stainless steel. Approximately 2 tonnes of chrome ore is consumed in order to produce 1 tonne of ferrochrome, while 1 tonne of ferrochrome is needed to produce 4 tonnes of stainless steel. Like nickel, chromium (and hence ferrochrome) prices are largely driven by the growth of the global stainless steel industry, which consumes over 90 percent of the world’s ferrochrome supply. Unlike nickel, however, there is no substitute for chromium in the stainless steel process.

Ferrochrome prices surged in the last several years, rising from about US$0.50 per pound in 2003 to over US$3.00 per pound in early 2008, an increase of approximately 43 percent year over year. Huge demand from the stainless steel industry, particularly from Asia, coupled with supply problems from main producers in South Africa were the driving forces behind these price levels. However, as a result of the current global financial crisis, stainless demand began to weaken substantially in the second half of 2008 and into early 2009 and steelmakers around the world have started scaling back production. Ferrochrome prices have consequently declined and a number of global producers have either shut down production altogether or scaled back significantly. As of September, ferrochrome prices had risen back to US $0.80 per pound and production capacity recovered to about 85% after reaching lows below 50% in the depth of the downturn.

The dominant player in the world ferrochrome market is South Africa, which accounted for 41 percent of global production in 2007. South Africa holds 74 percent of the world’s chrome ore reserves, followed by Zimbabwe (12 percent), Kazakhstan (8 percent), India (1 percent) and various other countries (5 percent).

Potential Ferrochrome Production in Ontario

During the course of 2008 and 2009, three high grade chromite ore zones were discovered in the McFaulds Lake area of northern Ontario, Canada, including the Blackbird One and Blackbird Two deposits discovered by Noront Resources Ltd., the Black Thor and Black Label deposits discovered by Freewest Resources Canada Inc. (“Freewest”), and the Big Daddy deposit discovered by a joint venture between Freewest, Spider Resources Inc. and KWG Resources Inc. This string of deposits is believed to be part of a trend with a total strike length of 14 kilometers, running from Blackbird One to Black Thor. Results to date indicate that together, these deposits form one of the most significant chromite discoveries ever made in North America and compare favourably to some of the major deposits found worldwide. Grades range between 30 and 60 percent chromite.

The potential for a multimillion tonne resource at McFaulds Lake provides an excellent opportunity for international chromite producers to diversify their operations in an economically and politically stable environment. Ontario is a mining friendly province from which skilled labour and government incentives are readily available. The area also provides access to ample infrastructure, including power, ports and rail. Thunder Bay, which has excess power capacity of 530 MW, can supply power at a cost of US$0.045 per kilowatt hour. The location of the project, if developed, also provides direct access to North American markets, which imports 500,000 tonnes of ferrochrome annually.

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