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NEWS RELEASE: Moving Forward with Road Access to the Ring of Fire (March 2, 2020)

Ontario and First Nations Working Together to Create Jobs and Prosperity for the North

March 2, 2020 12:30 P.M. – Office of the Premier

TORONTO — The Government of Ontario, Marten Falls First Nation and Webequie First Nation are taking a major step forward in unlocking jobs and opportunity in Northern Ontario’s Ring of Fire region by entering into a historic agreement to advance the planning and development of a proposed Northern Road Link.

Premier Doug Ford and Greg Rickford, Minister of Energy, Northern Development and Mines and Minister of Indigenous Affairs, were joined by Chief Bruce Achneepineskum of Marten Falls First Nation and Chief Cornelius Wabasse of Webequie First Nation at the Prospectors and Developers Association of Canada (PDAC) convention today for a signing ceremony.

The government is delivering on its promise to move forward with the development of the Ring of Fire with willing partners, including Indigenous groups and Northern communities.

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Hasty development of Ontario’s Ring of Fire could have devastating impacts – by Justina Ray and Cheryl Chetkiewicz (Toronto Star – February 26, 2020)

https://www.thestar.com/

Dr. Justina Ray and Dr. Cheryl Chetkiewicz are scientists with Wildlife Conservation Society Canada who have worked in the far north in Ontario 25 years collectively.

The current wave of protests in support of the Wet’suwet’en is about respecting Indigenous rights, but also about responsibility — our collective responsibility to protect increasingly endangered ecosystems and some of Canada’s most intact natural areas.

Failing to consider the value of such areas — for people, for biodiversity, and for our climate — before making development decisions is increasingly leading to conflict.

We are on the cusp of a similar situation in Ontario, where plans to build roads to the Ring of Fire in the far north are being pursued in a way that similarly ignores the big picture.

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Thunder Bay: Federal government orders regional impact assessment in Ring of Fire – by Heather Kitching (CBC News Thunder Bay – February 19, 2020)

https://www.cbc.ca/news/canada/thunder-bay

The federal minister of environment and climate change has ordered a regional impact assessment in the Ring of Fire, the mineral-rich region around 500 kilometres north of Thunder Bay, Ont, which is targeted for mining development.

Jonathan Wilkinson issued the order in response to requests from three parties: Aroland First Nation, the Wildlife Conservation Society of Canada and the Osgoode Environmental Justice and Sustainability Clinic.

It was issued under Canada’s new Impact Assessment Act, which came into force on Aug. 28, 2019 as part of the government’s overhaul of environmental assessment legislation – which it said was aimed at streamlining the approvals process for natural resource projects and improving consultation with Indigenous peoples.

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Canada steps into ‘Ring of Fire’ debate with Ontario Premier Doug Ford – by Dayna Nadine Scott and David Peerla (The Conversation – February 17, 2020)

https://theconversation.com/

Dayna Nadine Scott is the York Research Chair in Environmental Law & Justice in the Green Economy, York University, Canada. This article is co-authored with David Peerla, advisor to Neskantaga First Nation.

The struggle over the mineral deposits in Ontario’s Ring of Fire has taken a surprising turn. With all eyes on British Columbia as events unfold in Unist’ot’en, the federal minister of environment and climate change has said the agency will establish a major regional assessment process for the Ring of Fire.

The region, 500 kilometres northeast of Thunder Bay, is said to hold one of the world’s richest chromite deposits, as well as nickel, copper and platinum. While some First Nations communities support the roads that would lead to the mines, other Indigenous people across the region are concerned they are losing control over the pace and scale of development in their homelands.

Those who support the development of the Ring of Fire will undoubtedly cast the federal decision as meddling by environmentalists and a disaffected First Nation. We see it as Canada finally stepping into the ring with Ontario Premier Doug Ford to restore some integrity to the environmental assessment process.

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No viable substitute for critical chromium – by Shane Lasley (North of 60 Mining News – January 30, 2020)

https://www.miningnewsnorth.com/

A vital ingredient in stainless steel and superalloys, chromium is considered by the United States Geological Survey as “one of the nation’s most important strategic and critical materials.”

“Because there is no viable substitute for chromium in the production of stainless steel and because the United States has small chromium resources, there has been concern about domestic supply during every national military emergency since World War I,” the USGS explains.

Rich chromite deposits on Alaska’s Kenai Peninsula were able to ease some of these concerns by providing a domestic supply of chromite, the only mineral of chromium metal, to help fill America’s increased demand for chromium during both World Wars. Alaska is second only to Montana when it comes to the best states to explore for future domestic needs of this important strategic and critical mineral.

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3,000 Workers in South Africa’s Mining and Smelting Sector May Lose Their Jobs – by Pavan Kulkarni (News Click.in – January 27, 2020)

https://www.newsclick.in/

Samancor Chrome Limited has cited operational reasons for preparing to retrench nearly 3,000 employees. Workers organized by the National Metalworkers Union of South Africa (NUMSA) are preparing to resist the retrenchments.

Over 3,000 workers in South Africa may be retrenched by Samancor Chrome Limited, a company involved in mining and smelting chrome ore. Samancor, with a capacity to produce 1.2 million tons, is one of the world’s largest suppliers of chrome alloys, including ferrochrome and chromite ore, which are used to give stainless steel its resistance to corrosion. South Africa supplies 30% of the global demand for ferrochrome.

Workers organized by the National Metalworkers Union of South Africa (NUMSA) are preparing to resist the retrenchments.

Samancor claims that due to adverse circumstances, the company is revising its production for 2020 downwards – chromite ore by roughly 29% and ferrochrome by 20%. In accordance with this plan, the company has initiated the retrenchment process, which “may affect 2,438 employees at the company’s mining operations and 599 employees at its smelters,” according to its statement.

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Column: Stalled Ring of Fire worth more than $117 billion – by Dr. James Mungall (Sudbury Star – January 24, 2020)

https://www.thesudburystar.com/

Dr. James Mungall is a professor of economic geology at Carleton University. He was Noront’s Chief Geologist during the discovery phase of exploration, but has no financial conflict of interest related to the Ring of Fire. He is considered the top specialist in magmatic ore deposits in Canada and is well-respected globally. Both the Ring of Fire and the Sudbury Basin are magmatic ore deposits.

How much is the Ring of Fire really worth?

Why has mining still not begun in Ontario’s Ring of Fire mineral deposit belt a decade after its discovery? Are the deposits worthless, or are there factors beyond the control of the mining industry that are blocking progress?

The value of recoverable contained metal “in the ground” represents the sum of wealth that can be generated through the eventual sale of the commodity to the marketplace. This wealth is distributed over costs of labour, energy, equipment, taxes, profits and interest payments, adding to economic activity by many actors.

Alternatively, the value of the deposit to investors is represented by the profit they hope to make after paying all costs. The need to apply a discount to future earnings shortens the time window on a company’s investment decision to just a few years and may forbid large initial capital expenditures even if the potential for long-term wealth generation is very great.

A third consideration is the intangible value of the deposit to society at large, such as the desire to secure a local supply of a strategic metal or to increase long-term economic activity in an underdeveloped region.

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China’s raw materials strategy: The next chapter in the US-China rivalry? – by Bashar Malkawi (Policy Forum – January 24, 2020)

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“Without a domestic supply, the United States must rely on Chinese
sources of rare earths to build ‘Made in America’ military equipment.
It makes little sense to rely upon a security competitor for access to essential
military materials. Rare earths are not the only strategic
metal. Lithium, chromium, cobalt, graphite, copper, and manganese
are also essential for industrial purposes.”

The United States cannot rely upon products that originate in, or supply chains that run through, a potential adversary, Bashar Malkawi writes.

China’s Belt and Road Initiative (BRI), publicly released in 2013 and formerly named ‘One Belt, One Road’, would, at first look, seem to be a force for good. China views the BRI as a way to enhance its trade connectivity, reduce surplus domestic industrial capacity, develop poorer interior provinces, promote energy security, and internationalise Chinese industrial and financial standards.

The BRI builds China’s commercial ties abroad by financing, constructing, and developing major transport, energy, technology, and other infrastructure projects in the Indo-Pacific, Africa, the Middle East, Europe, and the Americas.

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South African chrome firms warn of more than 1,200 job cuts (Reuters U.S. – January 20, 2020)

https://www.reuters.com/

JOHANNESBURG (Reuters) – South African chrome firms on Monday warned of more than 1,200 potential job cuts, citing power cuts, rising electricity tariffs and increased competition from overseas.

The potential layoffs highlight the risks posed to Africa’s most industrialized economy by struggling state power utility Eskom, which is struggling with breakdowns at its coal-fired power plants and is mired in a financial crisis.

They also pile more pressure on President Cyril Ramaphosa’s government, which is trying to contain 29% unemployment.

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Glencore to restructure SA ferrochrome following “material losses” at Rustenburg smelter – by David McKay (MiningMX.com – January 17, 2020)

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HIGH electricity tariffs, interruptions, and deteriorating conditions in the ferrochrome market have forced Glencore and its joint venture partner, Merafe Resources, to consider restructuring its Rustenburg smelter.

As a result, the partners have commenced a Section 189 process in terms of the Labour Relations Act that may result in job losses. Glencore did not specify the extent of its planned restructuring, but it said Rustenburg smelter was suffering financial losses and would continue to do so “for the foreseeable future”. The Rustenburg smelter produces about 430,000 tons of ferrochrome annually. Glencore’s total smelting capacity from South Africa is 2.3 million tons (Mt).

This decision is the result of deteriorating operating and market conditions across the South African ferrochrome industry including unsustainable electricity tariffs and interruptions, cross subsidies and real cost inflation,” Glencore said. Significant ferrochrome output had also been displaced to international producers whose costs are lower.

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Ontario’s Ring of Fire: Many Hurdles Yet to Be Overcome – by Jason Unrau (The Epoch Times – December 19, 2019)

https://www.theepochtimes.com/

The Ring of Fire, northern Ontario’s massive chromite mining and smelting development project, continues to face delays due to challenges like the lack of road access and negotiations with First Nations communities.

Premier Doug Ford has said that the mine is “critical for (his) administration,” but without a rail corridor or smelting capabilities, the extensive chromite deposits in the James Bay Lowlands will stay stranded underground, in the middle of nowhere.

“It’s inaccessible for all practical purposes, except by air, and to sell chrome you’ve got to get it to its steel mills of the world,” said Frank Smeenk, CEO of KWG Resources and one of six mining execs and geologists who located the original cache.

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Eskom reform urgent to restore ferrochrome potential – by Martin Creamer (Engineering News – March 12, 2019)

http://m.engineeringnews.co.za/

JOHANNESBURG (minngweekly.com) – The demise of State power utility Eskom has caused South Africa to lose its optimal position in the lucrative ferrochrome business.

Because of Eskom’s decline, unbeneficiated chrome ore exports from South Africa to China have enabled the Asian giant to ascend up the ferrochrome production ladder. As reported by the Johannesburg Stock Exchange-listed chrome and ferrochrome company Merafe Resources on Monday, 76% of the chrome ore imported by China last year came from South Africa.

Merafe shares in 20.5% of the earnings before interest, taxation, depreciation and amortisation of the large Glencore-Merafe Chrome Venture, the world’s second lowest cost producer.

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Low grades, high power costs key snags to SA chromite sector’s competitiveness – by David Oliveria (Engineering News – July 14, 2017)

https://www.engineeringnews.co.za/

JOHANNESBURG (miningweekly.com) – Despite South Africa’s rich chromite endowment, the low chromium oxide (Cr2O3) grades in its orebodies and the high cost of electricity are significant barriers to the country becoming the dominant player in the global industry.

Mintek metallurgical project development consultant Dr Nic Barcza highlighted that the estimated global chromite production last year was about 30-million tons, with South Africa leading the charge at 14-million tons, followed by Kazakhstan at 5.5-million tons.

Barcza was giving a keynote address at the Southern African Institute for Mining and Metallurgy’s Chrome Colloquium at State-owned research organisation Mintek’s Randburg facilities, in Johannesburg, last month. He noted that South Africa and Kazakhstan, which collectively boast a shipping-grade chromite reserve of about five-billion tons, accounted for over 95% of global chromite resources.

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Matawa Chiefs – “Matawa member First Nations will lead and deliver the next economic boom of this province” – by Staff (NetNewsLedger.com – November 26, 2019)

http://www.netnewsledger.com/

THUNDER BAY – “Matawa member First Nations will lead and deliver the next economic boom of this province. Equitable partnerships between Matawa First Nations-Government-Industry will result in investment opportunities on a national and international scale. Matawa First Nations are the partners and investors of certainty required for economic and social prosperity,” says Chief Harvey Yesno, Eabametoong First Nation.

“Matawa First Nations are fully aware of the potential impacts to our Inherent Aboriginal and Treaty Rights with the anticipated significant developments that will occur on our homelands. In today’s environment, it would be absurd and negligent for our communities not to call on the Ontario government to develop a new Crown-Inherent Aboriginal Rights-Treaty approach to develop the North,” states Chief Celia Echum, Ginoogaming First Nation.

The Chiefs of the Matawa First Nations (MFN) presented to the Ontario Standing Committee on General Government (SC-GG) regarding Bill 132, also known as ‘An Act to reduce burdens on people and businesses by enacting, amending and repealing various Act and revoking various Regulations’ tabled on Monday, October 28, 2019 by the Hon. Prabmeet Sarkaria, Associate Minister of Small Business and Red Tape Reduction.

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Rallies in twin Saults protest plans for ferrochrome plant – by Darren Taylor (Northern Ontario Business – November 25, 2019)

https://www.northernontariobusiness.com/

Groups of environmentally concerned citizens gathered in the twin cities of Sault Ste. Marie – in Ontario, Canada and in Michigan, U.S. – on Nov. 23 for coordinated rallies to protest Noront Resources’ planned ferrochrome production facility for Sault Ste. Marie, Ont.

“I know of people in Marquette, all over the state of Michigan, who are concerned about the building of this facility,” said James McCall, Sault Michigan resident, speaking to SooToday.

About 20 protesters gathered on the U.S. side at 1 p.m., intending to stay at that location until 6 p.m., the group including professional environmentalists and members of the Sault Tribe of Chippewa Indians.

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