Critics look for details on Ring of Fire ‘devco’ – by Carol Mulligan (Sudbury Star – August 29, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Sudbury Star mining columnist Stan Sudol levelled even harsher criticism. “With no First
Nations or industry representatives on their board, this was obviously a rushed and cynical
announcement to try to meet an election promise,” said Sudol.”Let’s not forget this
development corporation was first announced 10 months ago, last November.”

Sudol pointed out the Cliffs Natural Resources, which has one of the largest claims in
the Ring of Fire, recently confirmed it was selling all non-core assets, including its
Ring of Fire properties. “This is an absolutely stunning indictment of the Ontario
Liberal government’s inability to move this project forward,” said Sudol.

It was on time, but it wasn’t the announcement those who were waiting for it were hoping to hear.

Six days before a self-imposed, 60-day election campaign promise to establish a development corporation to design, construct and maintain infrastructure for the Ring of Fire, the Government of Ontario announced it had officially done so.

In a brief news release, the province said the Ring of Fire Infrastructure Development Corporation was officially established as a not-for-profit corporation, headquartered in Thunder Bay, with an interim board of directors of four senior public servants.

The interim board will put the necessary structures in place to allow partners to determine their participation in the corporation, it announced.

Northern Development and Mines Minister Michael Gravelle called Thursday’s announcement a significant step forward in meeting Premier Kathleen Wynne’s election promise and in moving the development corporation — and the Ring of Fire — forward.

Critics said it was at least the third time the Liberal government has announced the same thing: That it plans to establish a body to decide how to bring governments, first nations and the private sector together to tap into the potential of the chromite deposits located 540 kilometres northeast of Thunder Bay.

The development corporation was first announced in November of 2013 and reannounced in February when consulting firm Deloitte LLP was hired to help get it off the ground.
There was no mention of Deloitte on Thursday, but Gravelle said in an interview it is still acting as a resource to the interim board and eventually to a more permanent board of partners.

Gravelle said the latest announcement positions the government to have “real discussions” to determine who the participants in the corporation will be, to get agreements in principle with them and to form a board of what he calls “a mature development corporation” rather than a board of public servants.

That mature board will be make all decisions related to infrastructure — including what type of transportation systems are needed to move ore and people in and out of the area — and how to spend the $1 billion committed by the province for infrastructure.

With the interim board in place and the ROF Infrastructure Development Corporation now a legal entity, the province can have more formal, structured discussions with industry about their participation, said Gravelle.

Algoma Manitoulin New Democrat MPP Michael Mantha was disappointed with Thursday’s announcement. More importantly, he said it sent a bad message to industry.

Mantha was looking for specifics about how the corporation would be made up and how it would function.

“We were expecting something with concrete steps … and individuals that were going to be participants at the table with the development corporation. All we hear is a reannouncement of nothing,” he said.

Mantha said the province is no further ahead in developing the Ring, estimated to be worth at least $60 billion in mineral development, than it was five years ago.

Nipissing Progressive Conservative MPP Vic Fedeli accused Gravelle and the Liberals of announcing the development corporation for the sixth time in nine months.

“Yet despite that considerable length of time, key industry, First Nations and Ontario Northland still haven’t been invited to the table,” said Fedeli.

He questions how serious the government is about proceeding in the Ring of Fire.

Sudbury Star mining columnist Stan Sudol levelled even harsher criticism.

“With no First Nations or industry representatives on their board, this was obviously a rushed and cynical announcement to try to meet an election promise,” said Sudol.

“Let’s not forget this development corporation was first announced 10 months ago, last November.”

Sudol pointed out the Cliffs Natural Resources, which has one of the largest claims in the Ring of Fire, recently confirmed it was selling all non-core assets, including its Ring of Fire properties.

“This is an absolutely stunning indictment of the Ontario Liberal government’s inability to move this project forward,” said Sudol.

Moe Lavigne is vice-president of exploration and development with KWG Resources, another company with claims in the Ring of Fire.

Lavigne said KWG president Frank Smeenk has had conversations with Deloitte representatives, whom he said were “trying to put meat on the bone of the ‘devco’.”

Lavigne said while the official establishment of the ROF Infrastructure Development Corporation is a positive step, “we all wish this could have happened sooner.”

The corporation has some big decisions to make, starting with agreements with First Nations in the area, before issues such as transportation corridors are decided.

Gravelle said former Supreme Court Justice Frank Iacobucci, representing the province, and former federal Liberal leader Bob Rae, representing the Matawa chiefs, are scheduled to begin the next phase of discussions, after a framework agreement between the two sides was reached earlier this year.

Gravelle said that was one of the reasons his government established the interim board and set up the development corporation the way it did.

Matawa chiefs said they wanted discussion about their participation in the corporation to be part of regional process discussions that are now about to enter the second phase.

For the original source of this article, click here: http://www.thesudburystar.com/2014/08/29/critics-look-for-details-on-ring-of-fire-devco