Ring of Fire and uncertainty – Thunder Bay Editorial (November 22, 2013)

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

IT would be easy to slip into despair over the interruption in Northern Ontario’s prosperous mining promise with the indefinite suspension of operations by leading player Cliffs Natural Resources.

It would be easy to start casting more blame on suspects including the provincial government for dithering and First Nations for holding up production with varying demands for consultation, among others.

There is plenty of blame to go around but money talks loudest in ventures of this size and a company this big is a hostage to its share price. That is dictated by the ebbs and flows of the market and commodity prices which are slumping.

Would Cliffs have shifted into neutral — it has not shut off the engine — if frustration over the pace of talks with government, First Nations and competitors had not been complicated by the lowered world price of the chromite that it seeks to extract from the remote north of Ontario and other minerals that it mines elsewhere?

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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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Cliffs’ exit from Ring of Fire forces Ontario to ask: what now? – by Adam Radwanski (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.

If not Cliffs, then who? The question is of paramount importance to Ontario’s economic future, and comes with no obvious answer. Mining the chromite deposits of the so-called Ring of Fire north of Thunder Bay is supposed to generate billions of dollars of revenue, and create thousands of jobs. But with the Ohio-based company having scrapped plans to develop it, nobody else is poised to step in.

It’s a dilemma that Kathleen Wynne’s Liberals have surely been contemplating for months already.

In retrospect, it’s apparent that both Cliffs Natural Resources Inc. and the government had a strong inkling this day was coming, and were each doing their best to make the other side wear the bad news.

For Cliffs, that meant mounting a case that the province wasn’t doing enough to remove the myriad barriers to getting work under way. Never mind that the company’s finances took a nosedive in recent years, because it bet heavily on iron ore just before commodity prices tanked, and that its incoming CEO was rumoured to be unenthused by the prospect of making a big investment in a mineral Cliffs has no experience mining.

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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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Ontario PC NEWS RELEASE: Cliffs Decision Confirms Government Failure in Ring of Fire

QUEEN’S PARK – The development of the Ring of Fire was dealt a significant blow yesterday as Cliffs Natural Resources made the decision to halt operations, and announced that it would be shuttering its exploration camp in the region as well as closing offices in Thunder Bay and Toronto.

“It’s hard to believe that things have gone so far off the rails that Cliffs has pulled the plug on their development,” said Norm Miller, PC critic for Northern Development and Mines and Aboriginal Affairs.

“What is truly unfortunate is the amount of unheeded warnings that this government received throughout the process. Now, there is no timeline for development, and hardworking people woke up today without jobs today from Northern Ontario all the way to Toronto”.

In June, Cliffs suspended their environmental assessment, and had publicly stated that halting operations was a possibility.

“All the while the government continued to insist that everything was moving forward” stated Miller.

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Bartolucci vows refinery will be built in Capreol – by Darren MacDonald (Sudbury Northern Life – November 20, 2013)

http://www.northernlife.ca/

The man who was minister of Northern Development and Mines when Cliffs announced it was building a $1.8-billion refinery near Capreol says now is not the time to panic.

“It’s not falling apart,” Sudbury MPP Rick Bartolucci said Wednesday, “although this is not the greatest news we’ve heard in regard to this project.”

Bartolucci said Cliff’s decision to suspend all work on the Ring of Fire — including work on the Moose Mountain refinery — is at least partly due to low commodity prices for chromite. And the recent ruling by the mining commissioner denying Cliffs access to land owned by another mining company to build a road to the site was another blow.

“But I will not end my political career with this project leaving Sudbury,” Bartolucci said, who announced earlier this year he would not run in the next election. “I worked very, very hard to make sure the ferrochrome processing facility was located (in Capreol).”

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NDP NEWS RELEASE: Liberal mismanagement threatens to extinguish Ring of Fire (November 20, 2013)

QUEEN’S PARK – NDP Northern Development and Mines Critic Michael Mantha says years of Liberal mismanagement of Northern resources are to blame for tonight’s announcement that Cliffs Natural Resources will be indefinitely suspending operations in the Ring of Fire.

“The decision by Cliffs Resources to halt operations in Northern Ontario demonstrates how the provincial government has no plan to develop and grow the mining sector,” said Mantha. “For years now all players from industry to First Nations to municipalities have spoken out on the need for a strategy on infrastructure, electricity prices, resource sharing and employment opportunities, yet the Liberals have dropped the ball.”

In a press release issued this evening, Cliffs Natural Resources said an “uncertain timeline” and “risks associated with the development of necessary infrastructure” motivated their decision to halt operations. The decision will result in job losses in Thunder Bay, Toronto, and at the exploration site.

“The recent announcement that the government would finally try to bring all players to the table was clearly a last minute attempt to appear to be on top of the file, when it’s clear the province was anything but,” said Mantha.

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NEWS RELEASE: Northern Development and Mines Minister Michael Gravelle’s Statement on Ring of Fire (November 20, 2013)

Today, Michael Gravelle, Minister of Northern Development and Mines, issued the following statement on Cliffs Natural Resources’ decision to suspend indefinitely its Chromite Project in Northern Ontario:

“Our government is committed to smart, sustainable, and collaborative development in the Ring of Fire and this development is about more than one company.

It is a multi-generational economic opportunity for this province with known mineral potential worth $60 billion and represents one of the largest known deposits in the world.

The Ring of Fire also presents an unprecedented opportunity for job creation with long-term benefits for communities in the North and the entire province.

While I am disappointed with Cliffs’ decision, and certainly appreciate the company’s continued interest in the project, our commitment is clear. The province is prepared to invest in vital infrastructure and create the right climate to support development in the region. We will work with key partners to realize these shared benefits.

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Northern summit to be held in Timmins – Wayne Snider (Timmins Daily Press – November 1, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Ontario cabinet ministers will converge on Timmins in early December to meet with Northern leaders. On Thursday, Northern Development and Mines Minister Michael Gravelle announced plans to host a Northern Leaders’ Forum on Dec. 6 in Timmins. The meeting will involve municipal, Aboriginal, business, industry and education leaders from across the North.

The main topic for discussion will be how best to implement the provincial government’s Growth Plan for Northern Ontario.

“Our government first released the Growth Plan as a blueprint for job creation and economic development throughout Northern Ontario,” Gravelle said. “Since its release, we have seen communities, organizations, and Aboriginal groups achieve some amazing things that have unequivocally proven my belief in the strength and resilience that we all share as Northerners.

“I am very pleased that our government is able to fulfil the request of the Northern Ontario Large Urban Mayors (NOLUM) and bring together key government ministers and community and Aboriginal leaders from across Northern Ontario to renew momentum and drive forward the next phase of the Growth Plan.”

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[Sudbury] City calls on province to make Ring a priority – by Laura Stricker (Sudbury Star – October 30, 2013)

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

The discovery of the Ring of Fire was like “winning the lottery,” and the province needs to treat it like so, a city councillor said Tuesday evening.

“The Ring of Fire is a once-in-a-lifetime opportunity,” said Ron Dupuis. “The only way we’re going to get this going is to keep pressure on the people in Toronto and to make sure they understand how vital it is to us.”

Dupuis’ comments came following a motion introduced by Mayor Marianne Matichuk that calls on the province to make the chromite-rich deposit a priority for the government.

“This motion is not designed to favour one company over another or to wade into legal dispute,” the mayor said. “It’s about partners working together so legal intervention is not needed. “The province must work with all stakeholders … the Ring of Fire is critical to the economic future of all of Ontario.”

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Facebook friend calls for return of bear hunt – by Ron Grech (Timmins Daily Press – October 26, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – A call to bring back the spring bear hunt through a newly created social media page is quickly gaining support. In less than a month since, the Bring Back Spring Black Bear Hunting page on Facebook has garnered more than 2,460 likes.

“Lately, it’s been like 200 a day,” said Raymond Boisjoli, the Kapuskasing resident who created the page. He said the concern has reached a point where Northerners are afraid to go for a walk if they live near the bush.

“I used to go in the bush in the summer and just walk. You can’t do that anymore because it’s too dangerous,” said Boisjoli, who also plans to launch a petition in the coming weeks.

The petition will be available at various locations throughout the North and eventually presented to the provincial government. “Something needs to be done,” he said. “A lot of people feel they can’t go into the bush or do as many activities as they used to.

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Ontario is the leading jurisdiction for exploration – Mauro – by Netnewsledger Staff (October 24, 2013)

http://www.netnewsledger.com/

Mining Question Raised in Ontario Legislature

QUEEN’S PARK – Bill Mauro and Minister Michael Gravelle engaged in Question Period in the Ontario Legislature on Wednesday.

The question came after the Progressive Conservatives and New Democrats pounded the Premier and Minister of Natural Resources on Tuesday over a lack of progress on the Ring of Fire.

Mr. Bill Mauro: I’ve got a question today for the Minister of Northern Development and Mines. Minister, our government’s economic plan to drive jobs and growth has three pillars:

We’re investing in people, we’re investing in infrastructure and we’re supporting a dynamic and innovative business climate in Ontario.

Now, I know in my riding of Thunder Bay–Atikokan, I’ve got great examples of what we’ve done on the infrastructure front, bringing forward projects that have been sought after for decades actually that we are now delivering on, that have created tremendous infrastructure improvements and are also creating a lot of work, and so that’s a wonderful piece.

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Opposition puts heat on Liberals over Ring of Fire – by Ian Ross (Northern Life – October 23, 2013)

http://www.northernlife.ca/

The Liberal government took a beating Tuesday in the Ontario legislature over the lack of progress in the Ring of Fire exploration camp.

With Cliffs Natural Resources threatening to make a major decision on its stalled Black Thor chromite deposit in the James Bay region, Opposition MPPs went after Premier Kathleen Wynne’s government during Question Period on Tuesday.

More than a year after the Ohio-based mining giant named Sudbury was the best site for a ferrochrome refinery to process its Ring of Fire ore, Algoma-Manitoulin MPP Mike Mantha said “it has finally become clear that not only did this government not have a real deal with Cliffs, but the company is about to pull out of Ontario because of the mess this government has made of the Ring of Fire development plans.”

Mantha questioned the government’s leadership on addressing some outstanding project-related issues of transportation, electricity prices, the environment and consultation. “The Liberal government’s lack of action sends a bad message to companies who are willing to invest in Ontario.”

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Ring of Fire Under Fire – by James Murray (Netnewsledger.com – October 22, 2013)

http://www.netnewsledger.com/

THUNDER BAY – In Queen’s Park today, during Question Period, the NDP Northern Development and Mines Critic Michael Mantha called on the Wynne government to address the lack of progress on development of the Ring of Fire.

“Last year, the Premier went up to Sudbury to announce that the government had reached a deal with Cliffs, and that it would create hundreds of mining jobs from the Ring of Fire,” said Mantha. “Only a year later and it has become clear that not only did this government not have a real deal with Cliffs, but the company is about to pull out of Ontario because of the mess this government has made of the Ring of Fire development plans.”

Mantha said the people of Ontario have been misled by the promise of jobs that have failed to materialize.

PC MPP Norm Miller was also on the attack. Just yesterday Premier, more bad news. One of the major players in the Ring of Fire, Cliffs Natural Resources, described [their] project as being in a tenuous state…if the company doesn’t have a transportation route, they don’t have a project., These are jobs waiting to be unlocked, put in jeopardy by your bungling of this file. What are you doing to ensure access to the Ring of Fire?”

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Kathleen Wynne: Ring Of Fire Environmental, First Nations Concerns Must Be Addressed – by Canadian Press (Huffington Post – October 22, 2013)

http://www.huffingtonpost.ca/

TORONTO – Ontario Premier Kathleen Wynne says the governing Liberals must address environmental and First Nations concerns before moving ahead with developing the Ring of Fire.

She says there are a lot of “moving parts” in the massive mining project in northern Ontario and the government needs to “get it right.”

Her comments come after one of the major players in developing the Ring of Fire urged the government to ensure the company has access to the chromite deposit.

U.S.-based Cliffs Natural Resources Inc. has been unable to build an all-weather road to the site because it would cross land staked by a rival company. It says the project is in a “tenuous state” and if it can’t get access to the deposit, it will consider pulling out.

Both the New Democrats and the Progressive Conservatives say the economic potential of the project is too important to lose.

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