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Cliffs Natural Resources

Ontario urged to get act together to save Ring of Fire development – by Maria Babbage (The Canadian Press/Globe and Mail – November 22, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

TORONTO — The Canadian Press – The finger-pointing has begun as governments and critics look to assign blame over a big mining company’s pullout from the Ring of Fire in northern Ontario, a massive mineral-rich area believed to have the economic potential of Alberta’s oilsands.

Cliffs Natural Resources Inc. is suspending its operations indefinitely, saying it couldn’t keep spending money while the question of whether it would be able to build an all-weather road to the remote site remained in doubt. It’s a major setback for cash-strapped Ontario, which may not see the economic windfall the governing Liberals had promised anytime soon.

Greg Rickford, the federal Conservatives’ lead minister for the Ring of Fire, said he was surprised with the Cliffs decision, because the company was “very satisfied” with the federal government’s involvement in the project. But in some ways, it wasn’t that surprising, said the minister of state for FedNor, the economic development organization for northern Ontario.

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Ring [of Fire] road or railroad – Thunder Bay Chronicle-Journal Editorial (November 24, 2013)

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

WHILE no one should minimize implications of the indefinite departure of Cliffs Natural Resources from the Ring of Fire mining belt, other players remain in place and with them, other possibilities.

Cliffs is the biggest and its plan to mine chromite would lead the list of depositors in the Ontario treasury. But its former partner and chief rival for chromite remains willing to propose an alternative to the transportation corridor that it and Cliffs both claim as essential to their plans — and those of every other mining interest in the vast region of mineral deposits.

So far, most attention has focused on Cliffs’ proposal for an all-weather road from its central property to a railhead near Nakina. From there, ore would be shipped on existing railways for processing.

KWG Resources makes the case for a railroad over the same ground. And the route is important since it is about the only high ground in a sea of muskeg.

KWG has staked claims along the route and Cliffs asked a provincial authority for permission to build its road over them.

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‘Bad news for all of Ontario’ – Bisson on Cliffs – Benjamin Aubé (Timmins Daily Press – November 25, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – It was MPP Gilles Bisson’s (NDP – Timmins-James Bay) turn to direct scathing remarks towards the province surrounding its handling of the Ring of Fire.

Last week, Cliffs Natural Resources indefinitely suspended its proposed chromite mine in the James Bay lowlands, citing a lack of progress on the file on the provincial government’s behalf.

“It’s not a surprise,” Bisson said on Sunday. “We’ve been meeting with Cliffs and other players in the Ring of Fire. They are all complaining about how the provincial government has not been front and centre about how to deal with the key issues that will allow this project to go forward, so it’s not without surprise.”

Liberal Premier Kathleen Wynne and Minister of Natural Resources Michael Gravelle each stated development was ongoing in the region and that they were confident Cliffs would come back to the table in the future, citing the importance of getting the project done correctly.

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The Ring of Fire’s Future Is Now a Burning Question – by Sunny Freeman (Huffington Post – November 22, 2013)

http://www.huffingtonpost.ca/

Mining giant Cliffs Natural Resources’ decision to halt work on the largest project in northern Ontario’s Ring of Fire region has aroused a sudden interest in the lumbering development.

The opposition at Queen’s Park pounced to lay blame on the province for the squandered opportunity.

Financial analysts scurried to advise clients on what it means for their shares. And usually blasé news outlets called on pundits to discuss whether the loss of the U.S. mining giant was a death knell for the much-hyped but little-understood development.

The biggest player in the Ring of Fire, a 5,000 square kilometre tract of land in Ontario’s Far North that is said to hold a potential $50 billion in mineral deposits, announced late Wednesday it is halting work on its $3.3 billion chromite project indefinitely, blaming, for the most part, an “uncertain timeline.”

If Cliffs’ decision to stop development is the death of that high stakes mining discovery, it was anything but a sudden one.

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COMMENT: Cliffs abandons Ring of Fire – by Marilyn Scales (Canadian Mining Journal – November 21, 2013)

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

Cliffs Natural Resources, the American miner that was so hot to gain control of chromite deposits in Ontario’s Ring of Fire, is packing up and going home.

The news release is an understatement: “The technical project work including feasibility study, development and exploration activities are being halted and there is no restart date planned.”

In practical terms, Cliffs is closing its Toronto and Thunder Bay, ON, offices as well as the exploration camp. That leaves employees without an employer, although the company did offer to help find jobs elsewhere in the company for some of those affected.

Cliffs has had an uncomfortable relationship with local First Nations, provincial authorities and other explorers working in the Ring of Fire. Readers may wonder if the company had any understanding of how to deal co-operatively with First Nations or if it thought it could overlook their participation.

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Cliffs Mine Shutdown Threatens Ring of Fire Development – by Gerrit De Vynck (Bloomberg News – November 22, 2013)

http://www.bloomberg.com/

Cliffs Natural Resources Inc. (CLF) is postponing a $3.3 billion project in Ontario, threatening development of the mineral-rich Ring of Fire area once described as Canada’s most-promising mining region.

Cliffs’ plan to mine chromite, an ingredient for making stainless steel, was among the most advanced in the Ring of Fire, the horseshoe-shaped deposit about 1,000 kilometers (622 miles) northwest of Toronto and named by a mining executive after the Johnny Cash song. Other companies working in the area include Noront Resources Ltd. (NOT) and KWG Resources Inc. (KWG), both headquartered in Toronto.

At stake is development of Northern Ontario, an area about twice the size of California, and projects to mine chromite, copper and nickel. In 2010, former Ontario Premier Dalton McGuinty called the Ring of Fire “the most promising mining opportunity in Canada in a century,” and Michael Gravelle, the province’s mining minister, values the Ring of Fire’s mineral potential at C$60 billion ($57 billion).

Cliffs’ decision is going to have “a huge impact on the development of the Ring of Fire,” Michael Mantha, an opposition New Democratic Party member from northern Ontario, said in a telephone interview.

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Development delayed in the Ring of Fire (Globe and Mail Editorial – November 22, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

A decision by Cliffs Natural Resources Ltd. to suspend development of its proposed $3.3-billion chromium mine in Northern Ontario sends a worrying signal about the fate of a giant mineral deposit whose economic potential has it being touted as Canada’s next oil sands.

The Ring of Fire region near James Bay is estimated to hold up to $50-billion worth of chromite, nickel, copper and other minerals, but so far only two companies have launched mine projects in the remote area, hundreds of kilometres from the nearest highway. This week, Cleveland-based Cliffs announced it will be suspending work and closing its offices in Thunder Bay and Toronto.

Cliffs says it has spent $500-million since 2010 – including the acquisition of the mineral rights – but has yet to secure road access to the site, complete environmental assessments or see negotiations resolved between the province and First Nations over how the land will be used and how income will be shared. “We’re really at a point where you can take it so far and spend your shareholders’ dollars,” a company spokeswoman told The Globe and Mail.

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Cliffs Natural Resources makes right move with Ring of Fire pullout – RBC – by Jonathan Ratner (National Post – November 21, 2013)

The National Post is Canada’s second largest national paper.

Cliffs Natural Resources Inc. may be down after announcing it is indefinitely suspending the Chromite Project in Northern Ontario’s Ring of Fire, but at least one analyst sees the news as a positive.

H. Fraser Phillips at RBC Capital Markets told clients that the international mining company’s decision to pull out of the Ring of Fire by the end of 2013 removes an uncertainty lurking over its shares.

“It has been our view that the project would take years to developed if it could ultimately be developed at all,” Mr. Phillips said. He noted Cliffs can now focus on allocating its capital and resources to its core iron ore assets such as the Bloom Lake mine in Quebec.

Based on estimates from the company’s July 2012 investor day, the Chromite Project required ferrochrome prices of US$1.40 per pound to produce an internal rate of return between 14% and 17%.

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Liberals don’t get mining and northern Ontario – by Christina Blizzard (Toronto Sun – November 22, 2013)

http://www.sunnewsnetwork.ca/home.html

TORONTO — So it seems the Ring of Fire (ROF) has fizzled — leaving only a burning sensation where it hurts.
The massive, ore-rich area in a remote part of northwestern Ontario is touted as the biggest economic boon to this province in 100 years.

It’s rich in palladium, platinum, nickel, diamonds and gold. Most importantly, it has the largest chromite deposit in North America — valued at an estimated $60 billion in economic development. After one of the major companies involved in its development pulled out Wednesday, the project now appears dead in the water.

Who’s to blame? Well, mostly a government that’s Toronto-centric, doesn’t get mining and doesn’t understand Northern Ontario.

Several years ago, Premier Kathleen Wynne’s predecessor, Dalton McGuinty, responding to a question about mining giant Xstrats moving its giant Timmins smelter to Quebec, opined, “We cannot continue to make a living by pulling stuff out of the ground.”

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U.S. mining giant pulls out of Ring of Fire – by Tanya Talaga (Toronto Star – November 22, 2013)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Cliffs Natural Resources suspends investment in mining project.

A U.S. mining firm is pulling out of its $3.3 billion investment in Ontario’s northern Ring of Fire, saying they are unable to work with Queen’s Park on developing what is believed to be one of the world’s largest chromite discoveries.

Cliffs Natural Resources Inc. announced late Wednesday that it is suspending its investment in the Ring — located more than 500 kilometres northeast of Thunder Bay — because of a multitude of problems, including unresolved land claims, environmental assessment issues and a lack of government support for infrastructure and power needs.

“We need external factors involved before we can move forward,” said Pat Persico, Cliffs director of global communications, from the company’s Cleveland, Ohio, headquarters.

It is estimated that there is nearly $30 billion worth of chromite, a resource used to make stainless steel, deep under the mossy earth in the Ring.

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Capreol plant now uncertain: Cliffs – by Carol Mulligan (Sudbury Star – November 22, 2013)

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

There is no guarantee — if and when Cliffs Natural Resources resumes work on its Ring of Fire chromite project — that it will build a ferrochrome processing plant in Sudbury, says a company spokeswoman.

The Cleveland-based company announced Wednesday it is indefinitely suspending work by the end of December on plans to mine chromite in the Ring of Fire and process it at the former Moose Mountain Mine site north of Capreol.

It has sunk $500 million into the project, but won’t invest any more capital given the uncertainty around the timeline for the project and the risks associated with infrastructure to develop its three deposits 500 kilometres northeast of Thunder Bay, said company spokeswoman Patricia Persico.

Many people weren’t surprised at the announcement Wednesday, as Bill Boor, Cliffs’ senior vice-president of global ferroalloys, had been warning for months his company was increasingly frustrated with its dealings with the Government of Ontario.

Sudbury Liberal MPP Rick Bartolucci, who helped broker the agreement with Cliffs to locate the ferrochrome processing plant in Capreol, said while the announcement was disappointing, Cliffs was still committed to the Sudbury site for the plant.

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Silver Linings in Cliffs Ring of Fire Rumble – by James Murray (Netnewsledger.com – November 21, 2013)

http://www.netnewsledger.com/

Silver Lining in Chromite Storm

THUNDER BAY – Opinion – The announcement by Cliffs Natural Resources on the Ring of Fire should not come as a major shock to anyone who has been following the story. Cliffs has maintained for a long time that the project was in the feasibility stage.

There are several potential silver linings in all of this rumbling. First is it a surprise? Honestly no. This has been coming for a while with Cliffs Natural Resources.

Some of this is due to ham-fisted bungling on the provincial level starting at the very top of the political pyramid. The Premier has not taken this project as seriously as it should have been taken in the view of many.

Ontario has not taken the steps to ensure job training on a massive level was possible. The federal government has stepped up there, but Ontario didn’t.

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Updated: Cliffs suspends plans for chromite mine, plant – by Mary Katherine Keown and Carol Mulligan (Sudbury Star – November 21, 2013)

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

A plan to open a chromite mine in northwestern Ontario and ship the ore to a Capreol plant for processing has been put on hold, along with hundreds of new jobs the development would have created.

On Tuesday, Cliffs Natural Resources announced it will suspend indefinitely its activities in the Ring of Fire by the end of the fourth quarter of 2013.

“As we’ve assessed the current challenges in the region and the costs to continue on the current path, we decided to suspend the chromite project indefinitely,” Bill Boor, senior VP of strategy and business development, said in a release. “Unfortunately, we will reduce the project team staffing, and close our Thunder Bay and Toronto offices, as well as the exploration camp site.”

Cliffs has determined “it will not allocate additional capital for the project given the uncertain timeline and risks associated with the development of necessary infrastructure to bring this project online,” according to its statement.

In June, the company suspended environmental assessments and in October, it announced it was planning to appeal a decision by the Mining and Lands Commissioner, who had dismissed its application to build an all-weather road through land staked by Montreal-based KWG Resources Inc.

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Cliffs puts Black Thor project on the backburner – by Ian Ross (Northern Ontario Business – November 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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

The Ring of Fire’s biggest mining player has called an indefinite halt to its chromite project in Northern Ontario. Cliffs Natural Resources announced late Wednesday that is it suspending its $3.3-billion Black Thor chromite mine and mill project, and it is not allocating any further capital to the deposit in the James Bay lowlands for 2014.

All technical work, including the feasibility study, development and exploration activity, is under suspension. The company has not assigned a project restart date.

Cliffs spokesperson Pat Persico said the challenges and uncertainties to advance the project timelines, and the associated risks concerning unresolved infrastructure issues with the Ontario government “really brought us to this decision.”

“We’re allocating capital for the project and there’s a point where we can no longer continue to do that without further clarity and movement in that area.”

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City officials in ‘shock and ‘disbelief’ after Cliffs announcement – by Darren MacDonald (Sudbury Northern Life – November 20, 2013)

 http://www.northernlife.ca/

City officials were stunned Wednesday evening, following the announcement by Cliffs Natural Resources it was suspending all work on its massive Ring of Fire chromite project, including work on a billion-dollar smelter near Capreol.

“The company determined that it will not allocate additional capital for the project given the uncertain timeline and risks associated with the development of necessary infrastructure to bring this project online,” Cliffs said in the release.

“We continue to believe in the value of the mineral deposits and the potential of the Ring of Fire region for Northern Ontario. As we’ve assessed the current challenges in the region and the costs to continue on the current path, we decided to suspend the Chromite Project indefinitely,” Bill Boor, senior vice-president, is quoted as saying.

“Unfortunately, we will reduce the project team staffing and close our Thunder Bay and Toronto offices, as well as the exploration camp site. “We understand this is a hardship for our employees and their families. During this transition, we will be working with this talented team of professionals to explore other opportunities at Cliffs.”

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