I'm hearing from sources in the Railroad industry that the Gov't will support and help fund the construction of a railroad to ROF through Ontario Northland.

I doubt if Friday's speach would contain such a deliberate reference to Chromite and the ROF if the Gov't is not about to make some major announcements with respect to the ROF.

Chris at KWG told me yesterday that KWG has staked a second rail route from Thunder Bay following an esker. This route avoids many of the rivers and swamps that would be encountered along a route from Nakina.

Cliffs and KWG are more interested in a rail link to the south than the alternative route to Hudson's Bay. The southern route gives them more options and will provide year round shipping.

The location of the smelter is still very much up in the air. Electricity rates are higher than in Quebec. If McGuinty wants the smelter here in Ontario he will need to make a deal and reduce the electricity rates, otherwise the smelter will go elsewhere.

Once the ore or concentrate is on a rail car it can be shipped anywhere for processing.

My guess is that eventually Vale or Xstrata will get involved and the logical destination would then be Sudbury. Cliffs is an easy target for companies like CVRD(Vale), Xstrata or BHP. Xstrata is already one of the worlds largest producers of ferrochrome and has a nickel smelter in Sudbury.

Just my thoughts

SN