KWG Resources’ ultimate dream of building a Ring of Fire railroad may have to be realized through a Chinese bank.
A spokesman for the Toronto junior miner is hyping that a “turning point” has been reached that will jumpstart the stalled development process of the untapped mineral belt in Ontario’s Far North.
KWG announced Dec. 29 that a Chinese railroad engineering firm, China Railway First Survey & Design Institute Group, is conducting a feasibility study to determine if it makes economic sense to run rails north to reach the rich chromite and nickel deposits of the James Bay region.
“The odds are extremely high,” said Bruce Hodgman, KWG’s communications director, in categorizing the likelihood of his company securing offshoring financing with a “bankable feasibility study” of KWG’s railroad concept.
“I think we’re making it happen. I think this is a huge turning point for the Ring of Fire.”
Last fall, KWG gave China Railway all-access to its technical data for a proposed chromite ore haul railway. The company is now promoting that the Chinese want to take the next step with a more in-depth study.
Besides looking for rail infrastructure money, when KWG president-CEO Frank Smeenk travels to China in mid-January to discuss the parameters of the study, he’ll be looking to secure chromite offtake agreements from the Chinese.
In return for the design and construction of a railroad, Hodgman said the Chinese could be paid in ferrochrome (processed chromite used in stainless steel production), or possibly semi-finished products.
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