Globe says Noront hears PM, Wynne working things out

2013-12-06 07:13 ET - In the News

The Globe and Mail reports in its Friday, Dec. 6, edition that Ontario and the federal government have begun to resolve their differences over the Ring of Fire, after a meeting between Premier Kathleen Wynne and Prime Minister Stephen Harper. The Globe's Bill Curry and Adrian Morrow write that the pair met on Parliament Hill on Thursday to discuss issues including plans to develop Northern Ontario resources. The province wants Ottawa to help pay for infrastructure, including a road or rail line, to develop the Ring of Fire, an area 500 kilometres north of Thunder Bay that contains an estimated $60-billion in minerals. Noront Resources is the main player in the region. Ontario is planning a development corporation with representatives from industry, three levels of government and first nations to oversee construction. Mr. Harper's spokesman Jason MacDonald said the two had a "productive, constructive discussion." He said: "They both agreed that the two levels of government will continue to collaborate on this important development. ... They also agreed that any investments by either level of government must represent a public benefit, including for first nations."

Globe says Noront awaits Ontario Mining Tax Act review

2013-12-06 07:14 ET - In the News

The Globe and Mail reports in its Friday, Dec. 6, edition that there is much at stake for Ontario as it tries to map out the potentially lucrative future for its mining sector. The Globe's David Parkinson writes that Ontario Premier Kathleen Wynne wants Ottawa to help the province finance the estimated $2-billion cost to build the infrastructure needed for the Ring of Fire mineral deposit where Noront Resources is the main player. Cliffs Natural Resources recently suspended its operations there, amid uncertainty about the infrastructure plans, and delays in environmental and first nations approvals. That gave a new sense of urgency to the province's efforts to get things moving, and to recruit Ottawa to help. The province continues to review its Mining Tax Act. Ontario has the lowest taxes on resource extraction of any province, and it wants to generate more revenue. It has dragged its feet on introducing a new structure, partly in light of the sharp downturn in commodity prices. But as the Ring of Fire push grows, the province is going to need to deliver clarity on just how big a pound of flesh it intends to extract from companies that want to exploit the area.