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Aboriginal and Inuit Mining and Oil/Gas

Ruling threatens Ring of Fire: Cliffs – by Carol Mulligan (Sudbury Star – September 21, 2013)

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

A recent decision by the Mining and Lands Claim Commissioner not to grant Cliffs Natural Resources an easement over claims staked by rival KWG threatens the development of the Ring of Fire in northwestern Ontario, says a Cliffs official.

Cliffs’ proposed 340-kilometre, north-south, all-weather road, which crosses unpatented mining claims of KWG Resources and other resource companies, is “essential” to the development of the Cliffs’ Chromite Project.

Cliffs plans to build a chromite smelter in Capreol that would create 400-500 permanent jobs. Without access to surface lands to develop “much-needed infrastructure, there is no project,” said Bill Boor, Cliffs’ senior vice-president of global ferroalloys.

While the company is open to discussions about how to work around the problem, “without a pathway developing quickly to overcome this major setback, it is going to be difficult to justify continuing with the project at this time,” said Boor in a news release Friday.

Boor did not say if Cliffs is going to appeal the decision released by the mining commissioner last week, but he said the decision is “not an appropriate use of mining claims under Ontario’s Mining Act.”

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Province not giving up on Ring of Fire – by Carol Mulligan (Sudbury Star – September 21, 2013)

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

Northern Development and Mines Minister Michael Gravelle said although Cliffs Natural Resources made its position clear Friday about its Ring of Fire project, he is encouraged the company “continues to be open to finding possible solutions and is looking at a number of options.

“From our perspective, we remain very committed to this project,” he said. ” The province recognizes the great opportunity we have with the Ring of Fire development and we are … very committed to seeing sound strategic development in the Ring of Fire.”

Gravelle said the province is making progress in moving development of the Ring of Fire forward. He cited negotiations led by former justice Frank Iocabucci and former Liberal leader Bob Rae as encouraging.

So was the announcement from Rae last week that the Matawa Council, comprised of nine First Nations near the Ring of Fire whom he represents, was withdrawing its application for a judicial review of the project.

That’s a positive step and there are others, including community readiness initiatives and other investments to ensure Northern communities benefit from developing the Ring of Fire.

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Ontario Northland should be Ring of Fire railroad – by Staff (Northern Ontario Business – September 20, 2013)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Ring of Fire junior miner, KWG Resources, is refloating the concept of using the Ontario Northland Railway (ONR) to haul ore out of the Ring of Fire in the James Bay region.

In a Sept. 16 news release, the Toronto-based company said it supports the “New Deal” business plan being proposed by the unions at the Crown-operated transportation agency.

According to KWG, a new agency should be established, governed by the First Nations and other regional stakeholders with federal oversight.

This agency would finance the railroad’s construction and continuing operations of the ONR by providing rail service “at cost” to the mining companies operating in the remote Far North camp. KWG is the holder of the only staked corridor out of the region. The company said it will make its right-of-way available for ONR use.

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NEWS RELEASE: Cliffs Natural Resources Inc. Responds to the Ontario Mining and Lands Commissioner Decision

CLEVELAND – September 20, 2013 – Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) stated that the decision by the Mining and Lands Commissioner related to its Chromite Project in Ontario, Canada, is disappointing and one that threatens the development of the Ring of Fire mining district. The Company’s proposed north-south all-weather road, which crosses unpatented mining claims of KWG Resources and other resource companies, is essential to the development of the Ring of Fire and a necessary component of Cliffs’ Chromite Project. Cliffs disagrees with the decision and contends that this is not an appropriate use of mining claims under Ontario’s Mining Act. Further, the Company sees no conflict between the legitimate uses of a mining claimholder and the proposed road, which has great benefits for Northern Ontario.

“Without access to the surface lands to develop the needed infrastructure, there is no project. Our proposed development has the scale needed to develop the road access and is therefore a catalyst for other smaller mining opportunities in the Ring of Fire. Cliffs is very disappointed in this decision, but beyond our project, it is clearly an issue for anyone interested in seeing these opportunities in the Ring of Fire becoming realities,” commented Bill Boor, SVP Global Ferroalloys with Cliffs. “While we are open to possible solutions, without a pathway developing quickly to overcome this major setback, it is going to be difficult for us to justify continuing with
the project at this point in time.” 

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Conservatives endorse mining tax royalties for First Nations – by Bryan Phelan (Wawatay News – September 18, 2013)

http://www.wawataynews.ca/

Ontario Progressive Conservatives say a share of the mining tax royalties should go to First Nations and other communities that build and support new mines.

Tim Hudak, the PC leader, introduced a policy “white paper” outlining his party’s position on the North during a visit to Thunder Bay on Sept. 17.

“The Ring of Fire is the greatest mining discovery of a lifetime but the project has gone nowhere,” Hudak stated in the introduction to the policy paper, titled Paths to Prosperity: A Champion for Northern Jobs and Resources.

To ensure mining development moves ahead, “As a first step, we need to work with business and Aboriginal communities to expedite the construction of an all-season transportation link to the Ring of Fire deposits,” the paper suggests.

The policy release comes one week after the Ontario Mining and Lands Commissioner dismissed an application from Cliffs Natural Resources for an easement that would allow the company to build an all-weather road to the Ring of Fire over mining claims staked by another company.

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Cutting Risks to Move Forward: Agnico Eagle leads Nunavut into modern mining era – by Bill Braden (Canadian Mining Journal – September 2013)

The Canadian Mining Journal is Canada’s first mining publication providing information on Canadian mining and exploration trends, technologies, operations, and industry events.

February 24, 2010, was a big day for Agnico Eagle Mines Limited’s Meadowbank project, as Board chairman Jim Nasso, flanked by Inuit business and community leaders, watched the first pour of molten gold and silver doré from the roaring refractory furnace at the $700 million project.

Nasso passed that still-warm ingot among his guests, and later among the hundreds of excited workers who posed to have a photo with it. President and CEO Sean Boyd toasted their work at a gala mine site dinner with glasses of gold-flecked champagne and news that gold bullion that very day had touched a new record of $1,260 an ounce on world markets.

Before the Meadowbank mine was launched in 2010, the vast Kivalliq region of Nunavut hadn’t seen an operating mine for 25 years. But it has been the engine of a new economy, creating hundreds of jobs and fostered millions of dollars in business ventures for a cluster of small Inuit communities with very few other career opportunities.

For its veteran parent company, the mine’s $1 million-a-day output is the biggest in its portfolio of five mines in Canada, Mexico and Finland, making Agnico Eagle Canada’s fifth largest gold producer at $US1.8 billion in revenue last year.

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NEWS RELEASE: KWG Resources Inc.: Business Plan for ONR Development of Ring of Fire

TORONTO, ONTARIO–(Marketwired – Sept. 16, 2013) – KWG Resources Inc. (TSX VENTURE:KWG) has previously advised the Minister of Northern Development and Mines (MNDM) that it would support the business plan proposed by the “New Deal” of the General Chairperson’s Association (GCA) representing unionized employees at Ontario Northland.

It is a simple plan:

MNDM would lodge its shares in ONR with a new agency governed by the First Nations and other residents of Northern Ontario, under federal oversight, thus avoiding the very substantial termination and closure liabilities attending the previously proposed liquidation;
KWG would make its railroad engineering and right-of-way claims available for extension of the ONR network to the Ring of Fire; and
The new agency would finance the new construction and continuing operations of the ONR by providing transportation “at cost” to the new Ring of Fire mines, to repay borrowings made at current low interest rates but amortized over the very long life of the new mines and rail line.
Developing the Ring of Fire with a Northern Ontario transportation utility:

Providing egress at cost, will give the Canadian chromium an important advantage that it needs in order to earn a market share.

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Ring of Fire in jeopardy, says Cliffs – by Jamie Monastyrski (Wawatay News – September 13, 2013)

http://www.wawataynews.ca/

It’s one step ahead and two steps behind lately for the future development of the Ring of Fire. The controversial proposal by Cliffs Natural Resources for an easement to build an all-weather road that would connect to the Ring of Fire was rejected Sept. 10 by the Ontario’s Mining and Lands Commissioner in a 43-page ruling.

“The decision by the commission was very disappointing,” said Jason Aagenes, director of environmental affairs for Cliffs Natural Resources in an interview.

“We view the north-south corridor as critical to the Ring of Fire development as well as a key component of our project. This does jeopardize the viability of the project going forward unless it is resolved.”

The ruling found the easement breaches rival company KWG Resources Inc.’s rights under Ontario’s Mining Act and that Cliffs did not demonstrate the 350-km road is in the public interest. The proposed road would cross over mining claims owned by KWG, an exploration stage company, which staked the ground in 2009 for a future railroad.

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Ring of Fire is little known, understood – by Carol Mulligan (Sudbury Star – September 13, 2013)

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

Much of Ontario’s future prosperity depends upon the success of developing the Ring of Fire, but many people in the province don’t know it. The Ontario Chamber of Commerce is conducting a study to measure the economic benefit of mining the ring’s rich chromite deposits and to raise awareness outside the North about their tremendous potential.

In fact, some observers believe the Ring of Fire could be worth as much as $50 billion to Ontario and be mined for as long as a century.

In Sudbury, Cliffs Natural Resources has plans to open a chromite mine in the Ring of Fire area and ship the ore to a plant in Capreol for processing, creating up to 500 jobs. However, those plans are on hold as the company sorts through a number of political, infrastructure and environmental issues.

To get people talking about the Ring of Fire, the Ontario chamber, in conjunction with the Greater Sudbury Chamber of Commerce, will hold a by-invitation-only round table in the city Oct. 9.

There it will seek business and community leaders “prescriptions” for how to move the project forward, says the senior policy adviser for the Ontario Chamber of Commerce.

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Ring of Fire logjam broken – by Thunder Bay Chronicle-Journal Editorial (September 12, 2013)

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

A CO-ORDINATED effort by Northwest First Nations to delay the Ring of Fire mining development appears to have fallen apart. And that’s a good thing. Now First Nations in the zone of the Ring’s major player, Cliffs Natural Resources, can each get on with arrangements to share in the opportunities that can flow from such a large project.

Matawa Tribal Council’s initial concerns were understandable. Told the federal government and Cliffs were jointly pursuing an environmental review, the nine Matawa First Nations in the area worried it would not be sufficient to allay their concerns about potential pollution or include them in the process.

Matawa launched a judicial review of the environmental assessment process and in June Cliffs put a hold on its own environmental impact statement (EIS) citing issues with First Nations, the province and other matters. The sheer enormity of the Ring of Fire meant all parties had to be sure it was done properly. None more than First Nations who have watched resource developments around them come and go with little to show for it.

The Matawa challenge and Cliffs’ shift to neutral seemed to signal an uncomfortable lull in the most exciting economic news the Northwest had heard in many years.

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Confederation College prepares future mining workforce – by Ian Ross (Northern Ontario Business – September 12, 2013)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Ottawa is supporting Aboriginal training in preparation for coming development in the Far North. The federal government’s Skills and Partnership Fund is allocating more than $5.9 million for employment training in the mining sector for people in the nine communities of the Matawa First Nations.

It’s part of a new Ring of Fire Aboriginal Alliance announced by Ottawa, Matawa, the Kiikenomaga Kikenjigewen Employment and Training Services (KKETS), Confederation College and Noront Resources, a junior miner working in the James Bay lowlands.

This fall, nine specialized training and six pre-trade courses will be made available for Matawa members with many delivered in their home communities and Thunder Bay.

The training programs include: mining essentials, environmental monitoring, basic line cutting, security guard, remote camp cook, remote camp support, underground common core, underground diamond drill helper and heavy equipment operator. The pre-trades programs are in carpentry, electrical, plumbing, welding, heavy duty equipment mechanic and construction craft worker.

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Matawa First Nations chiefs drop Ring of Fire legal challenge – CBC News Thunder Bay (September 11, 2013)

http://www.cbc.ca/thunderbay/

Most Matawa communities hope negotiations assisted by Bob Rae will also address their concerns about environmental assessment

The Matawa First Nations chiefs have withdrawn a legal challenge to the federal environmental assessment of the Cliffs chromite project in the Ring of Fire. The case was set to be heard by Federal Court later this month.

In a news release Wednesday, the Matawa Tribal Council said that when it started the court case in late 2011, there was no negotiation table, and it was pushed into a corner.

“There’s a forum for discussions with Ontario now and it’s going to look at the environmental assessment question, as well as other issues,” Aroland Chief Sonny Gagnon said.

Talks with Ontario began recently with Bob Rae representing the First Nations, and Frank Iacobucci negotiating for the government. Matawa said it expects that mining companies and the federal government will also be involved.

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NEWS RELEASE: Matawa First Nations End Litigation to Focus on Negotiated Solution in Ring of Fire

Thunder Bay, September 10, 2013 – The Matawa First Nations Chiefs have decided to end the Judicial Review litigation that challenged the type of environmental assessment process (EA) being used for the Cliffs Chromite Project. The case was scheduled to be heard by the Federal Court in mid-September. This summerthe Government of Ontario began talks with the Matawa First Nations on the Ring of Fire.

“We never wanted a judge to decide our future if we could avoid it,” noted Chief Sonny Gagnon of Aroland First Nation, “Like we always said, we want to determine our own solutions, by negotiation.”

“When we started the court case there was no negotiation table so we were pushed into a corner.There’s a forum for discussions with Ontario now and it’s going to look at the environmental assessment question as well as other issues,” said ChiefGagnon.

Talks with Ontario recently got underway with Bob Rae as the First Nations’ regional negotiator, and Frank Iacobucci as the Province’s negotiator. It is anticipated that project proponents and the Federal Government will also be involved. The environmental assessment process is one of the issues up for discussion. Other issues include regional infrastructure, environmental monitoring, revenue sharing, and community development.

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CLIFFS NATURAL RESOURCES INC. NEWS RELEASE: Marten Falls First Nation Withdraws from Matawa Judicial Review of Cliffs Chromite Environmental Assessment

Thunder Bay, ON – September 10, 2013 – Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) is pleased with the decision made by Marten Falls First Nation to withdraw from the Matawa Tribal Council led Judicial Review (JR) of the Cliffs Chromite Project Federal Comprehensive Study Environmental Assessment (EA) process.

As of August 27, 2013, Marten Falls First Nation officially withdrew from the Judicial Review. “We are pleased that Marten Falls First Nation has taken the lead in their effort to work with Cliffs to develop a collaborative working relationship,” stated Bill Boor, Cliffs Natural Resources Senior Vice President Strategy and Business Development.

Following the withdrawal of Marten Falls from the JR, and Webequie’s earlier withdrawal in May of 2012, the remaining seven Matawa communities, Cliffs, and the Federal government agreed to request dismissal of the JR. On September 5th, the Court ordered a dismissal of the JR.

“Cliffs is committed to engaging in active and productive discussions with potentially affected First Nation communities. We’re determined to be a good partner, and will continue to work with First Nations who may be impacted by the Project to understand their concerns and priorities, and to respond to them,” added Boor.

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EXPLORING for GOLD: Lac Seul holds shares in junior explorer AurCrest Gold; Webequie part owner of Cyr Drilling – by Bryan Phelan (Onotassiniik – Fall 2013)

 Onotassiniik is Wawatay’s new mining quarterly.

Ian Brodie-Brown’s first contact with Lac Seul First Nation stood out. Then CEO of Tribute Minerals, a junior exploration company, Brodie-Brown hadn’t just sent a letter to the band. He had sent it voluntarily. “He was the first guy that I’d ever seen – the first company representative – approach a First Nation without being told to by the Crown,” recalls Chris Angeconeb, Lac Seul’s lands and resources co-ordinator at the time.

The introductory letter arrived almost seven years ago. Exploring for base metals at Confederation Lake, in Lac Seul’s traditional territory, Tribute was “basically trying to drum up support for a micro-mine with small output; a little underground project,” Angeconeb says.

Brodie-Brown says he expected new provincial rules for mineral exploration and consultation with First Nations would come eventually (regulations for exploration plans and permits, under a modernized Mining Act, finally took effect this spring). Instead of waiting, “We just decided to take a proactive role,” he says.

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