Provincial Ring of Fire coordinator speaks to Timmins businesses

A chromite and nickel bonanza located in the middle of Ontario’s Far North will have a far-reaching economic impact that will stretch even into Timmins, according to the province’s coordinator for the so-called “Ring of Fire.”

“The potential for production in the region is likened to the scale of some of the historic mining camps in Ontario, including Sudbury, Kirkland Lake, and Timmins, all of which have been in production well on a century,” said Christine Kaszycki, assistant deputy minister, Ring of Fire secretariat with the Ministry of Northern Development, Mines and Forestry.

“The difference with the Ring of Fire is that we now have a stark opportunity to begin thinking strategically and plan for a development in a manner that will bring environmental and social sustainability. That includes the whole range of aspects of this project: not just a mine and a concentrator, but value-added manufacturing opportunities including secondary processing, partnerships and First Nations engagement, and strategic infrastructure.”

A sold-out crowd of nearly 90 businesspeople from Timmins, Kirkland Lake, Iroquois Falls and Hearst gathered to hear Kaszycki speak about this billion-dollar mining development during a June 6 Chamber luncheon at the Timmins Days Inn.

Located roughly 500 kilometers northeast of Thunder Bay, the Ring of Fire is host to rare and significant discoveries of chromite, which is used in the production of stainless steel. As such, its potential development by the likes of Cleveland-based Cliffs Natural Resources and KWG Resources. Noront Resources is also located in the camp, focused primarily on nickel.

For Cliffs, environmental permitting is expected to be done by early 2013, when construction will begin in time for production to kick off in 2015.

One of the biggest question marks surrounding the project, however, is where Cliffs is looking to locate its proposed smelter, which would require 300 megawatts of power to operate and would employ as many as 1,300. Although Capreol, just north of Sudbury, has been identified as the “base case” by Cliffs, the company is currently exploring a variety of locations in Northern Ontario as potential sites – including in Timmins.

No timelines have been set for the announcement of a decision on the location of this facility, though their pre-feasibility studies are likely to be complete by early fall, which will help to inform their decision as to where the facility will be located, said Kaszycki.

This development is understood to be so crucial that the Timmins Chamber of Commerce last fall formed a Ring of Fire Task Force to focus on helping Timmins to benefit through exploration of the issues.

This includes such items as transportation, which is just one of the many key factors surrounding the project, said Kaszycki, as the proposed Ring of Fire mine sites are isolated and currently only accessible by air or winter roads.

This has left all three companies devising their own ideas as to what the solutions would be: Noront is examining an all-weather road stretching westward to Pickle Lake, while Cliffs is looking at extending rail southwards to connect at the main CN line at Exton, as well as an all-weather road to Nakina. Similarly, KWG is conducting a geotechnical assessment of a rail corridor.

The role of Ontario Northland in the process is still unclear, however, given the lack of a specific site for Cliffs’ processing facilities, said Kaszycki.

Many area First Nations will also have be engaged throughout the process, with the Matawa Tribal Council member communities expected to be the most directly affected, said Kaszycki. However, the environmental impacts could extend to the Attawapiskat and Fort Albany First Nations, and therefore their involvement will be required as well.

This will mean ensuring that these communities have the opportunity to benefit through infrastructure, social and skills training development, the latter being something the province will look at assisting, said Kaszycki.

The project sites’ isolation is also a factor in the issue of energy: Noront and Cliffs have a combined estimated need of 55 megawatts of energy for their mine sites and related processing facilities.

When asked about Cliffs’ comments about looking at locating the smelter outside of Ontario if energy rates were not brought down, Kaszycki responded that the province had been working with the company in order to make them fully aware of the range of programs that could help achieve lower rates. These include the Northern Industrial Energy Rebate program, among others, she said.

Still, assuming the processing will indeed take place in Ontario, the province will also help ensure that local mining service and supply companies will be able to participate in the development process through the efforts such as “sourcing seminars.” These sessions would indicate to businesses where they may be able to plan to be involved as the Ring of Fire companies continue development of their deposits, said Kaszycki.

“On the supply and services side, there will be some key initiatives going forward, and there will be a variety of initiatives like that we’ll keep the community informed on as we move on.”

The Timmins Chamber of Commerce will keep members apprised of these and other related developments as they occur.