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Canadian Regional Media and Web Publications

Noront CEO says new acquisition changes how industry, First Nations and goverment work together – by Matt Vis (tbnewswatch.com – March 27, 2015)

http://www.tbnewswatch.com/default.aspx

THUNDER BAY – The president and CEO of Noront Natural Resources acknowledges the acquisition of the claims formerly held by Cliffs Natural Resources is a game changer for the Ring of Fire.

Alan Coutts was in Thunder Bay on Friday in hopes of meeting with Matawa chiefs regarding the announcement earlier this week of Noront now holding nearly 65 per cent of the Ring of Fire.

While he did not get to meet with the chiefs, he said the consultation process needs to be completely re-evaluated. “I think we’ll probably have to take a couple of steps backwards to change the relationship and dialogue but ultimately it will allow us to go forward a lot further,” Coutts said at the company’s Thunder Bay office.

“We’re potentially redefining the landscape of how industry, First Nations and government work together for the entire nation.”

Matawa chiefs expressed concern about the sale, accusing the company of working outside of the framework agreement that had been signed last year and objecting to First Nations not having any input in the transaction.

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[Matawa] Chiefs rain on Ring parade – Editorial (Thunder Bay Chronicle-Journal – March 27, 2015)

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

What is the basis for this allegation? Because, “the chiefs were informed of the deal at the same time as the public . . . .” Perhaps the chiefs would prefer to have been jointly accused with Noront of insider trading by insisting on advance knowledge of a purchase plan by publicly traded companies. … Matawa needs to re-think its hasty and inappropriate response to the first good news about the Ring of Fire in a while. (Thunder Bay Chronicle-Journal Editorial)

WHILE many people viewed Noront Resources’ plan this week to acquire the vast chromite properties of Cliffs Natural Resources as a welcome shot in the arm of the stalled Ring of Fire mining project, Matawa First Nation Chiefs are grumpy.

When Cliffs pulled out of the project, a sense of gloom settled over this region. With the biggest player gone, so too seemed the hopes of communities across the region for the new mining boom the Ring had promised.

Noront has always been a smaller player, with nickel interests. By planning to pick up Cliffs’ properties, Noront signalled renewed industry faith in the project said to be the North’s economic salvation. Billions of dollars are on the line.

Raining on this parade are the Matawa chiefs who have been enjoying new respect and attention from all players, including government, who unanimously agree that First Nations must be primary participants and beneficiaries in the Ring of Fire.

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Digging up a culture clash [B.C. Jade Mining] – by Alan Campbell (Richmond News – March 27, 2015)

 

http://www.richmond-news.com/

Richmond man finds himself between a jade rock and a hard place as the bridge between a rough and ready Canadian mining family and billionaire Chinese investors on a new TV show

Nowhere in the Lower Mainland has the coming together of two worlds — East and West — stirred emotions over the last few years than Richmond.

Throw in a hard-bitten, beer-drinking all-Canadian family, jade-mining in harsh conditions, with Chinese billionaire investors breathing over their shoulder, and you have a culture clash ready to ignite at any given second.

The poor guy caught slap, bang in the middle is Richmond family man Alan Qiao, who is one of the stars of a new Discovery Channel show called Jade Fever, which debuts March 31.

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Gravelle says province is committed to working with First Nations on Ring of Fire – by Jodi Lundmark (tbnewswatch.com – March 26, 2015)

http://www.tbnewswatch.com/default.aspx

THUNDER BAY — The Minister of Northern Development and Mines is taking the concerns of First Nation leaders seriously and says they have an important role to play in the development of the Ring of Fire.

“The province, our government, remains absolutely committed to continuing the work we are doing with the Matawa First Nations related to implemented the regional framework agreement,” said Michael Gravelle (Lib., Thunder Bay-Superior North) Thursday morning.

On Wednesday, chiefs of the Matawa First Nations held a press conference to speak out against the news earlier this week that Noront Resources Inc. was maneuvering to purchase 103 Ring of Fire claims from subsidiaries of Cliffs Natural Resources, meanwhile setting a March 31 deadline to reveal the terms of reference for its environmental assessment process for claims the company had already staked, mainly it’s Eagle’s Next nickel project.

The Matawa First Nation chiefs believe the company is operating beyond a framework agreement they signed last year with Ontario and that First Nations should have a say in the transaction. Gravelle said he heard the chiefs’ concerns and is taking them seriously, but he is also encouraged.

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Noront Resources Looking to Move Holistically with First Nations – Netnewsledger’s James Murray Interviews Noront’s CEO Al Coutts (March 27, 2015)

http://www.netnewsledger.com/

THUNDER BAY – MINING – Noront Resources CEO and President Al Coutts shares details on the company’s purchase of Cliffs Natural Resources properties in the Ring of Fire in Northwestern Ontario.

Noront Resources, Coutts explains has gone through a “game changing” process from being one of the very junior mining companies to a whole new status.

Coutts states that changes many things and he is looking to meet with First Nations leaders from Matawa First Nations, the Ontario and Federal Governments with an eye to seeing how this entire project can not move forward.

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[Ring of Fire] Canada’s “Next Oil Sands Miracle” a Bust – by Rich Duprey (The Motley Fool – March 26, 2015)

http://www.fool.com/?source=illsitima0000001

Once billed as the economic equivalent of Canada’s oil sands industry, the vast oil deposits in the country’s western provinces of Alberta and Saskatchewan, where 97% of its oil reserves reside, Ontario’s Ring of Fire chromite region held the promise of being an engine of economic growth in its own right worth somewhere north of $120 billion.

Unfortunately it was also mired in parochial biases and competing interests that served to quench any fire for success.

A fraction of its value

Cliffs Natural Resources (NYSE: CLF ) was once thought to hold the key to unlocking its potential, but after suspending work in 2013 on its $3.3 billion Black Thor chromite deposit, it gave up all hope of the region ever being developed and began an orderly exit from Canada. That culminated earlier this week with the sale of all of its chromite projects to one of the Ring of Fire’s other interested parties, Noront Resources (NASDAQOTH: NOSOF ) .

Six years ago the two had engaged in a protracted bidding for the rights to the chromite properties with Cliffs emerging victorious and agreeing to pay about $240 million.

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Matawa First Nation chiefs voice objection to Noront’s Ring of Fire purchase – by Leith Dunick (tbnewswatch.com – March 26, 2015)

http://www.tbnewswatch.com/default.aspx

Chief-elect Wayne Moonias says it feels like Noront Resources and the Ontario government have put a collective gun to the heads of Northern Ontario First Nations.

Moonias, who will take the reins of Neskantag First Nation on April 1, was reacting to news earlier this week that Noront Resources Inc. was maneuvering to purchase 103 Ring of Fire claims from subsidiaries of Cliffs Natural Resources, meanwhile setting a March 31 deadline to reveal the terms of reference for its environmental assessment process for claims the company had already staked.

Moonias added Matawa First Nation chiefs, who gathered Wednesday in Thunder Bay to unanimously speak out against the sale, believe the company is operating beyond a framework agreement his people signed last year with Ontario and that First Nations should have a say in the transaction.

“We’re trying to ensure that our rights are respected and protected,” Moonias said. “This is a critical time in our communities. Those days are gone when the government and industry came in and took all the resources in our community.”

The Ring of Fire, a multibillion-dollar mother-lode of chromite and other minerals, will never be developed if true partnerships aren’t formed, the chiefs said. That means First Nations must be involved every step of the way, said Aroland First Nation Chief Sonny Gagnon.

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Mining private equity: It’s Davis or bust? – by Frik Els (Mining.com – March 25, 2015)

http://www.mining.com/

The number of mergers and acquisitions in the mining and metals industry declined to the lowest in a decade last year. Big deals were few and far between and the 11 deals worth more than a billion were miners buying mines. Overall 80% of deals in terms of value were made by industry insiders.

After years of talk, the private equity billions destined for the sector remain mostly on the sidelines (or are seeking greener pastures). The deals that have been pushed through from outsiders (or ex-insiders to be more precise) have been small, highly targeted and often go unnoticed (it’s called private equity for a reason).

All eyes are on Mick Davis and his $5.6 billion X2 fund to open the floodgates (or at least set the ball rolling). But the ex-Billiton CFO has so far failed to pull the trigger despite the likes of Anglo-American, BHP Billiton and Vale putting assets up for sale.

With X2 Davis, who is a cricket fanatic, appears to be taking a five-day test approach (which often ends without a result), rather than going for a quick Twenty20 win.

Still, the caution seems somewhat uncharacteristic. Davis built Xstrata over less than a decade through a series of billion dollar transactions into a company with 70,000 employees in 20 countries. Xstrata’s market value peaked in 2008 at $85 billion.

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Ring of Fire still emerging – Editorial (Thunder Bay Chronicle-Journal – March 26, 2015)

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

When the bottom fell out of iron-ore giant Cliffs Natural Resources last year and the company’s big plans for Northern Ontario began to unravel, a competitor remarked that development in the Ring of Fire would still happen one day, “not just on Cliffs’ timetable.”

The remark was unfair because, up until the fall of 2013, Cliffs was the real deal: It had spent $500 million in pre-development work on its RoF properties, and was very close to operating the remote region’s first mine.

Few will forget Cliffs’ thoughtful RoF point-man, Bill Boor, especially his candour and willingness to field questions from all comers.

But many got carried away by the idea that Cleveland-based Cliffs, an established company that floated the prospect of 1,000-plus jobs, could pull it off, even as metal prices dropped.

Earlier this week, Noront Resources announced the move that many expected — the potential purchase of Cliffs’ RoF properties. The US$20 million deal, which includes the big Black Thor chromite deposit, is expected to close next month.

In announcing the plan, Noront president Alan Coutts wisely cautioned against any expectations that his company would be able to quickly pick up where Cliffs left off.

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Matawa Chiefs Oppose Noront Ring of Fire Plans – by Staff (Netnewsledger.com – March 25, 2015)

http://www.netnewsledger.com/

THUNDER BAY ON – BUSINESS – Matawa First Nation Chiefs re-affirmed their commitment to a community based processes for Ring of Fire Development, including creating environmental protections and economic opportunities which are driven by their community members, not just industry plans.

The recent purchase announcement by Noront goes against the Matawa First Nations Unity Declaration signed in Webequie First Nation July 13, 2011.

The Chiefs have repeatedly signalled that genuine partnership in development will be the only way forward in the Ring of Fire, and Noront seems intent on driving its agenda, rather than working together.

The Matawa Chiefs are examining legal and political options on both the purchase agreement and the rumored advancing of the Environmental Assessment process beyond the draft Terms of Reference phase. These moves are seen as a barrier to future opportunities with the First Nations as well as threatening Aboriginal and Treaty Rights. The Chiefs were informed of the deal at the same time as the public, and while negotiating the next steps on an enhanced environmental assessment.

Chief Peter Moonias outlined the key reasons why the Chiefs are frustrated with Noront, “the Cliffs chromite is on our lands, we have jurisdiction here as well as Aboriginal Title and Treaty rights in the lands that hold the Cliffs chromite.

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Column: Noront the new king of the Ring – by Stan Sudol (Sudbury star – March 25, 2015)

(L to R) Noront Team at PDAC Awards Ceremony: Glenn Nolan, Vice President, Aboriginal Affairs; Alan Coutts, P.Geo, President and CEO; Kaitlyn Ferris, Manager, Corporate Responsibility; Paul Semple, P.Eng, Chief Operating Officer; Gregory Rieveley, CPA, CA, Chief Financial Officer.
(L to R) Noront Team at PDAC Awards Ceremony: Glenn Nolan, Vice President, Aboriginal Affairs; Alan Coutts, P.Geo, President and CEO; Kaitlyn Ferris, Manager, Corporate Responsibility; Paul Semple, P.Eng, Chief Operating Officer; Gregory Rieveley, CPA, CA, Chief Financial Officer. (Photo by Stan Sudol)

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

Just when I was ready to title my next Ring of Fire column, “Lost and sinking in the political muskeg of the James Bay lowlands,” a corporate bolt of lightning struck Monday, when Noront Resources, with the backing of Franco Nevada Corporation, announced the acquisition of Cliffs’ chromite properties.

This is a game changer in the Ring of Fire! A Canadian company is putting cold hard cash on the table – during one of the most severe mining busts in decades – in the long-term financial belief of the economic potential of the Ring of Fire.

Franco Nevada is lending Noront U.S. $22.5 million for five years at 7% interest in return for a 3% royalty for Cliffs’ Black Thor chomite deposit and a 2% royalty for all of Noront’s other Ring of Fire properties, with the exception of their Eagle’s Nest nickel/copper/PGM mine. The stock markets seemed to be pleased with this announcement, as Noront shares closed at 48.5 cents on Tuesday, the same as Monday, up almost 37% from their closing price the previous week.

Without a doubt, this is the mining deal of the century — and/or an extraordinary fire sale.

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UPDATED: Ring of Fire deal ‘game-changer’ – by Mary Katherine Keown (Sudbury Star – March 24, 2015)

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

Noront Resources Ltd. announced Monday it plans to buy Cleveland-based Cliffs Natural Resources’ chromite assets in the Ring of Fire for $20 million.

International companies have touted the region’s mining potential for years, but have yet to take any projects to construction, largely due to transportation and access issues.

“We’re all in with respect to the Ring of Fire. This is where we want to be committed to,” Alan Coutts, Noront’s president and CEO, told The Star on Monday. “We think the region is very prospective, from a geological and exploration point of view.”

Coutts likened the Ring of Fire “to another Sudbury,” predicting “there’ll be multiple mines discovered over time, like in Timmins or Red Lake. We think it’s another one of these emerging mining camps.”

Coutts said the Toronto-based company has been involved in the Ring of Fire since 2007 with the Eagle’s Nest nickel-copper-platinum group deposit.

The chromite deposits are part of Coutts’ longer-term vision. While not an immediate priority, he said he would like to begin extracting nickel within three years and chromite within five years.

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Noront president doesn’t rule out ferrachrome smelter for Thunder Bay – by Leith Dunick (tbnewswatch.com – March 23, 2015)

http://www.tbnewswatch.com/default.aspx

The president and CEO of Noront Resources is not ruling out a ferrachrome smelter landing in Thunder Bay. Alan Coutts on Monday said Monday nothing is written in stone, after his company spent $20 million to acquire more than 100 claims previously owned by a pair of Cliffs Natural Resources subsidiaries.

Cliffs had originally said Sudbury was its preferred location for the processing plant. “We haven’t settled on anything yet,” Coutts said in an interview with CKPR Radio, adding there is no guarantee the facility will even be built in the province.

“We would like to see that upgrading of the chrome wars happen in Ontario, but a smelter is a big investment. It’s a very energy-intensive process and you’d need to see some really good electricity rates as well.” Coutts said he plans to speak to the province about energy cost, but it’s far too soon in the process for nay firm decisions.

“But we’re looking at this from a fresh viewpoint and all options are open, essentially.” Noront is on record favouring an east-west corridor being built into the Ring of Fire, which would link to the project via Pickle Lake.

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Ontario slammed by Northern Prospectors Association – by Andrew Topf (Mining.com – March 20, 2015)

http://www.mining.com/

Dotted with lucrative gold mines like Red Lake, Hemlo, Musselwhite and Timmins, along with the nickel belt of Sudbury, Ontario with its storied mining history should be a prospector’s dream. In fact the province’s allure as a mining jurisdiction has never been duller, despite the promise of the Ring of Fire and a number of prospective gold properties.

Participants at a consultation forum earlier this week took the opportunity to blame the Ontario government for concentrating its efforts on the Ring of Fire – a chromite-rich development project in the James Bay lowlands of Northern Ontario – and neglecting other mining projects that would be easier to access than the remote Ring of Fire, which lacks key infrastructure for mining.

“There’s no tacit recognition by this provincial government that it believes in mining,” said Gino Chitaroni, president of the Northern Prospectors Association, in an article posted Friday in Northern Ontario Business. “All we hear about is the Ring of Fire. Let me explain something about the Ring of Fire, it’s not the only thing going on in this province. I’m sick to death of it.”

Chitaroni told industry players at the session, hosted by the Ministry of Northern Development and Mines, that “he could think of eight to 10 mining projects in eastern Ontario alone, that would be viable with some investment, and much easier to access than the remote Ring of Fire,” according to Northern Ontario Business.

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