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By Jeff Labine, tbnewswatch.com

Chromite could make Thunder Bay’s economy look more like Calgary during the oil boom, says the president of KWG Resources Inc.

The Thunder Bay Chamber of Commerce invited KWG president Frank Smeenk to speak at its annual general meeting at the Valhalla Inn Wednesday. Smeenk’s mineral company found a large deposit of chromite in the ring of fire area.

He believes mining could change the Northwest for the better.

"It is like finding a new oil field," Smeenk said. "North America has never had a domestic source of supply of chromite. The grade is so high and the deposit is so large that mining could go on for decades."

KWG made the discovery in a joint effort with Spider Resources Inc. The company looked for diamonds in the Northwest Territories and used the opportunity to look for other minerals. The discovery was a high-grade mineral that can be used to make stainless steel – chromite.

Smeenk said chromite is an essential ingredient when making stainless steel and there could be a huge market from Japan, China and Korea. This will give North America its own source of chrome for the steel-making industry instead of importing material.

"You can’t make stainless steel without chrome. Fifteen to 18 per cent of all stainless steel is chrome," he said.

Smeenk said he is looking for office space in Thunder Bay to set up shop. He plans to move more of his company into Thunder Bay and hire local workers. However, the company could start development within five to 10 years, he said.

"Thunder Bay is the service centre. Everything passes through here and transportation and communication is great. This is the place that will feed the mines and be fed by the mines," he said.

The cost to start up production is more than a billion dollars. Smeenk said a smelting factory and an open pit to mine would cost US$800 million. He added a new railway is an option to move the material. Despite the costs, Smeenk said the pay back is fast.

Harold Wilson, president of the Thunder Bay Chamber of Commerce, said the ring of fire developments have been under the radar and local businesses want to know what the plan is.

"(The general meeting) is an opportunity to give it a real focus," Wilson said. "This is an opportunity for new dollars to be coming into our area. Billions of new dollars that will be dispersed all over northern Ontario."

Thunder Bay hasn’t fully embraced mining as an economic sector, Wilson said.
He said high expectations are dangerous but the resources are real and contractors are already working to sell the goods.

"It is the war of expectations," he said. "You need to stoke the fire but you don’t want to get burned."

Wilson said the more businesses satisfy the needs of the contractors, the more the city will benefit economically.

But as in any business, there are no guarantees. Companies need to step up if they want to get a piece of the action, he said.