Re: Is P3 the way to go for Ring of Fire Infrastructure?
in response to
by
posted on
Sep 14, 2014 11:36AM
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
It was suggested in a discussion, using KWG Alternate E-W road as an example, posted on KWG site that: "Just fill in the forms and send the P3 applications to appropriate agencies to find out their responses. The value of the project is about right ~$100M. Make it ~200M if there are justifications for a larger project. The proposal could include the power transmission infrastructure to be built along the road corridors as part of the expande project. Mining companies should be willing to foot part of the costs, since they would not depend on diesel generation. Similarly, the FNs communities could persuade the government to chip in to get rid of the diesel generators. As part of the expanded project a communication infrastructure which could be built along the power corridor."
A similar approach could be taken for NOT proposed E-W road, as described in NOT plan for the Eagle Ni mine development.
- The first part of this road, permanent road, from Hwy 808 to Webequie Junction would cost ~$80M (as indicated in KWG map... feel free correct if better info is available). The last portion, ~100km, would be a winter road and would cost ~18M (i.e. it would cost a lot more if this portion were to be made a permanent road, say over $40M, including the cost of a bridge over the Muketei River.
- In NOT plan for the Eagle Ni mine a slurry pipeline the Ni concentrate slurry would be pumped from the mine site to a transportation hub and dried in a dryer in Webequie Jct. The dry Ni concentrate would then be trucked down to Pickle Lake.
- Additional costs: Over $100M for the slurry pipeline and dryer and supporting facilities would be expected. Hence, the total cost for this plan would be more than the cost of the Alternate E-W route proposed by KWG.
NOT, if I am not mistaken, has raised questions about the economics of spending a large sum of money for a dedicated pipeline for Ni during the mine life of approx 11 years (?), and has looked at other alternatives. IMO, it would be much simpler if NOT would just complete the northern section as a permanent road (and get rid of the pipeline and dryer at Webequie Jct).
- However, both road proposals, the modified NOT E-W (with pernanent road all the way to the Eagle mine site) road and KWG Alternate E-W road would cost the same ballpark (~$100M for KWG proposal, and a bit over for NOT's).
- IMO, in the end, perhaps, both routes would be built to serve all FNs communities around the RoF. However, to spread out the cost (the Ont Gov promised 1B over 10 years), one option would be to begin with the road along the Alternate E-W corridor as proposed by KWG since it would be part of the service road along the N-S corridor, and the power transmission corridor along the NOT proposed E-W route. This would, hopefully, please (partially, and almost) all FN communities.
Bottom line: Fill in the P3 application form with NOT as a leading proponent with the help of some (4?) key FN groups with Webequie as the leading community? for the power transmission corridor.
Additionally, Weberquie may want to make a case for a permanent road from the RoF to Webequie as an extension of the Alternate E-W road. If they are a more ambitious then apply for the construction of the permanent road for the entire road. However, it may be wise to keep the project as simple as possible in order to avoid confusion and extensive discussions & consultations.
Cheers,
goldhunter