http://www.thesudburystar.com/ArticleDisplay.aspx?e=3301591

"The company, which could announce a site as early as this month"....(with Elections Oct.6 an announcement this month would be very timely)

Sudbury officials ponder Cleveland visit

By HAROLD CARMICHAEL, THE SUDBURY STAR

Posted 1 hour ago

The city may be sending a team to Cleveland, the home base of Cliffs Natural Resources, to present Greater Sudbury's case for landing a smelter to process ore from the company's chromite deposits in northwestern Ontario.

"There is something in the works," Mayor Marianne Matichuk said when reached Thursday. "I can't get into details. We don't have everything firmed up."

The Star has learned a team that includes Matichuk and chief administrative officer Doug Nadorozny could be heading to Cleveland as early as Wednesday to present a study about a former industrial site just north of Capreol.

"I will be fighting for our community and giving Cliffs a good case for our community," Matichuk said.

Cliffs Natural Resources officials were unavailable for comment Thursday.

Cliffs Natural Resources' Black Thor chromite deposit is located in the Ring of Fire area. Cliffs said it is looking at running an open pit mine and on-site ore-processing facility to produce concentrate.

The concentrate would then be sent to a ferrochrome production facility to manufacture ferrochrome. The company said it has identified the brownfield site in Capreol on which to build the plant.

Company officials visited a site north of Capreol in mid- February as guests of the city and the Greater Sudbury Development Corporation.

Chromite is an essential ingredient in the making of stainless steel.

Cliffs Natural Resources officials have warned that Ontario's high electricity costs would be an important factor in the site selection process, leaving the possibility open it could be located in Quebec or Manitoba, which have much lower hydro rates.

The company, which could announce a site as early as this month, estimates 500 people will work on the smelter during construction and up to 500 when it's operating.

In June, Nadorozny said in an inter view that Cliffs has hired SNC Lavalin to perform a feasibility study on the site in Capreol and much will depend on the outcome of that study.

Nadorozny said he has been in discussions with Cliffs Natural Resources officials about kick-starting the planning approvals process as soon as a decision is made.

Several other cities, including Thunder Bay, Timmins and Greenstone, are also vying for the chromite processing facility.

Cliffs Natural Resources' pre-feasibility study into the chromite deposit, meanwhile, is expected to be completed by this month. If the pre-feasibility report is favourable, a full feasibility study would begin immediately afterward and is expected to be completed in late 2012, the company has said. Production could start in 2015.

Before any development occurs at the Ring of Fire, a transportation route -- either a railroad or road -- will have to be constructed.

The 350-kilometre railway would cost $2 billion and need about two years for environmental studies. It would take another three years to build.