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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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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A coal slurry shame – by Martin Wissmath (Hinton Parklander – November 18, 2013)

http://www.hintonparklander.com/

Sherritt International Corp., the company that owns the Obed mine 30 kilometres northeast of Hinton, could now be responsible for the largest coal mining waste-water spill in Canadian history.

But could government regulators and environmental authorities have done more to prevent it from happening?
A billion litres of slurry spilled into the Athabasca River on Halloween when a storage pond at the Obed mine site broke apart.

Slurry is the concoction of materials and chemicals, including coal and thickening agents called flocculents, mixed with the water in the mine storage ponds. Coal mines in Alberta are required to contain liquid runoff to prevent it from pouring into the provincial waterways. Consider this an epic fail.

A spokesperson for Sherritt initially told the Parklander the waste-water consisted of “naturally occurring” materials, but mentioned the extra chemical agents, which are standard for coal-mining storage ponds, after further inquiry.

The spill was innocuously labelled a “sediment release” by Alberta Environment and Sustainable Resource Development.

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Space mining is bedrock of Sudbury research venture – by Laura Gregorini (Northern Ontario Business – October 29, 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.

From space mining suits to terrestrial robotics, Sudbury’s Deltion Innovations is immersed in groundbreaking research and development of space mining technologies and techniques.

Although the Northern Centre for Advanced Technology (NORCAT) eliminated its Innovation and Prototype Development Department earlier this year, the same work it started in 1995 will continue under the new for-profit corporation, said Deltion CEO Dale Boucher.

“There was no longer any interest by NORCAT to carry on space activity and so we thought there was a good opportunity here for Sudbury. We had developed a good global image and so to continue the work of the department we elected to create this company.”

Among the work it will continue is the RESOLVE project (Regolith and Environment Science and Oxygen and Lunar Volatile Extraction), started in 2005, which will confirm the presence of hydrogen, potentially in the form of water ice on the moon. The intent is to use the drilling technology developed here in the 2018 Resource Prospector mission to the moon.

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Politicians draw to Cliffs refinery site – by Jonathan Migneault (Northern Ontario Business – November 18, 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.

Northeastern politicians have beating a steady path to the site of a potential ferrochrome refinery in an outlying area of Sudbury. Cliffs Natural Resources has had a continuous presence in Capreol, where it plans to build a ferrochrome processing facility, said councillor Dave Kilgour.

“Cliffs is in town almost all the time,” Kilgour said. “They’re moving forward and they’re spending money every day.” On Nov. 15, Kilgour joined local MPs Glenn Thibeault and Claude Gravelle, and MPP France Gelinas, on a tour of the proposed refinery site with Cliffs officials.

Gravelle said the site, located near the old Moose Mountain Mine, is remote and no major infrastructure has been been built but representatives from Cliffs did show him the plans for the plant. “They did seem very confident the project is going to move forward,” Gravelle said.

Conservative MPP and finance critic Vic Fedeli, representing Nipissing (North Bay) riding, also visited the proposed site, Nov. 12. “I can see why both Cliffs and the City of Greater Sudbury are excited for this project,” Fedeli said.

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Finding solutions as partners in Ring of Fire – by William Boor (Onotassiniik Magazine – Winter 2013/2014)

http://onotassiniik.com

Grads looking to political and mining company leaders for opportunities

William Boor is the Senior Vice President, Strategy & Business Development, Cliffs Natural Resources

The following is excerpted from a keynote address by Cliffs VP William Boor at the Ontario Mining Forum in Thunder Bay on June 20.

I think we have come to a time that will prove to be really critical in the history of the Ring of Fire development. …
I stand here talking tonight as a face of “industry” … (and) I know what comes with that. As “industry” I am expected to be self-interested for my company’s shareholders only, interested in keeping as much as possible, and by inference, giving as little as possible.…

But I’m asking you to hear me as a person – a person who believes that development, and particularly mining development, creates the possibility for everyone to succeed together. I believe that my position within industry is a wonderful place to change people’s lives.

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Geology, habitats and plants throughout northern Ontario – by Andy Fyon (Onotassiniik Magazine – Winter 2013/2014)

http://onotassiniik.com

Andy Fyon is the Director, Ontario Geological Survey, Ministry of Northern Development and Mines

When you walk across the land or boat across the water, do you notice the range of plants growing on different types of land? For example, the plants that grow in muskeg areas are very different from those growing on bare rocky areas. This is a pattern repeated over and over.

While observing this, have you ever wondered if geology plays a role in controlling where different types of plants grow?

There is a strong link between Ontario’s geological history and the location of different types of plants. We know that geological forces shaped the land. And yes, geological forces also created habitats – special places where distinctive plants grow. Obviously, different habitats are home to different plants. So, the type of rock and the type of deposit left behind by glaciers are key factors in determining the distribution and types of some plants.

Ontario’s long and complex geological history created many different habitats that sustain different types of plants in different areas.

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Transportation costs key for successful Ring of Fire development [Part 4 of 4] – by Stan Sudol (Sudbury Star – November 18, 2013)

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

Throughout this four-part series, transportation infrastructure has been highlighted as one of the key issues — a host of aboriginal concerns is the other — that must be resolved in order for the Ring of Fire’s world-class mineral projects, conservatively worth about $60 billion and counting, to move forward.

Since Cliffs Natural Resources is a billion-dollar multi-national, it seems to have taken up all the attention or oxygen in the room when discussing transportation issues. I have often heard from a variety of mining and government colleagues that Cliffs has the money and size, so their proposal must be the right one.

Last summer, mining and metals analyst John Tumazos found “the total of metal write-downs from 2008 to 2013 will breach the $200 billion mark this year.”

And let’s not forget that Cliffs took a $1-billion write-down in January for its $4.2-billion purchase of Consolidated Thompson Iron Mines Ltd. in 2011, as well as another roughly $900 million in other impairments, according to a Globe and Mail report.

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ACCENT: Ring’s potential ‘astounding’ – by Stan Sudol [Part 3 of 4] (Sudbury Star – Novmeber 16, 2013)

Ontario Greenstone Belts (Map: Ontario Geological Survey)
Ontario Greenstone Belts (Map: Ontario Geological Survey)

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

In Sudbury, when people hear about the Ring of Fire, they think of Cliffs Natural Resources and its plan to ship chromite from a mine in northwestern Ontario to a plant in Capreol for processing that would create between 300 and 400 local jobs. But we should remember that this proposal is only a “benchmark” scenario and that many issues still need to be resolved. As a result, the location of this facility could change.

And Cliffs and its Black Thor mine represent only one of the Ring’s many promising mineral resources and future discoveries.

Located 500 kilometres northeast of Thunder Bay, the Ring of Fire contains billions worth of chromite — among the best deposits in the world — plus nickel, copper, platinum group elements, gold, zinc and vanadium metals.

In 2007, an interesting mix of six geologists and junior mining executives – Richard Nemis, Mac Watson, Frank Smeenk,  Neil Novack, John Harvey and Don Hoy – collectively discovered the geologically rich Ring of Fire. It is the most significant mineral discovery in Canada since the Sudbury Basin in 1883 and the Timmins gold camp in 1909.

In an engaging presentation about the Ring of Fire at the Prospectors & Developers Association of Canada convention in March 2013, geologist James Franklin outlined the staggering economic value of the Ring of Fire.

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Campus talk raises ethical concerns about UBC’s role in new mining institute – by Vinicius Cid (The Ubyssey – November 12, 2013)

http://ubyssey.ca/

On Thursday, Nov. 7, the Social Justice Centre hosted a talk debating UBC’s role in a new mining institute, as well as broader ethical implications associated with the mining industry.

The Canadian International Institute for Extractive Industries and Development (CIIEID) will be funded by a $24.6 million grant from the Canadian International Development Agency (CIDA) which will go to both UBC and SFU. The institution is intended to help educate people in developing countries about the best practices for mining.

Yves Engler, a Montreal-based writer and political activist who has written several books critical of Canadian foreign policy, led the talk. Sam Stime, a UBC civil engineering graduate student involved with “Not From My Campus,” a blog critical of the CIIEID, opened the talk. He introduced the audience to the moral and ethical concerns surrounding overseas mining by Canadian companies and the implications of establishing the CIIEID at UBC.

“This is our time to ask tough questions to our government and universities,” Stime said. “Through this institute, there is now a link between us and the federal government’s agenda of imposition.

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Northern Manitoba chiefs representing First Nations on province’s new Mining Advisory Council – by Ian Thompson (Thompson Citizen – November 15, 2013)

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000. 

Several Northern Manitoba First Nation chiefs as well as mining industry representatives from companies such as Vale, Hudbay Minerals and San Gold are members of Manitoba’s new Mining Advisory Council which aims to help First Nations benefit from the development of new mines, Mineral Resources Minister Dave Chomiak announced Nov. 8.

“First Nations that want to participate will be partners every step of the way as new mines are brought on line and they will share in the benefits of resource development,” said Chomiak in a press release. “There will be new training opportunities, good jobs, revenue sharing and a range of social and economic benefits for First nations communities. This will also send an important message to those who want to invest in Manitoba’s mining sector that we’re open for business.

First Nations representatives on the Mining Advisory Council include co-chairs Chief Donovan Fontaine of Sagkeeng First Nation and Chief Ron Evans of Norway House Cree Nation, along with Chief Philip Buck of Mosakahiken Cree Nation, Chief Clarence Easter of Chemawawin Cree Nation, Chief Jerry Primrose of Nisichawayasihk Cree Nation, Chief Andrew Colomb of Marcel Colomb Cree Nation, Chief Gilbert Andrews of God’s Lake First Nation, Keewatin Tribal Council Tribal Grand Chief Irvin Sinclair and Opaskwayak Cree Nation Chief Michael Constant.

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Is rail or road the best choice for [Ontario’s] Ring of Fire? [Part 2 of 4] – by Stan Sudol (Sudbury Star – November 15, 2013)

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

Earlier this year, KWG Resources released a commissioned report by engineering consulting company Tetra Tech on the costs of a road versus a railroad in the Ring of Fire.

By way of background, KWG wants to build a railway to ship ore out of the Ring of Fire. It’s rival, Cliffs Natural Resources prefers a road. However, KWG has staked some of the land Cliffs needs for such a road. Cliffs appealed to the Mining and Lands Commissioner of Ontario to get access to the land, but lost — a decision it is now appealing.

The study KWG ordered confirmed the initial capital costs (direct and indirect) to construct a single track railroad were about $1.551 billion versus $1 billion for a road. Media reports keep repeating an older figure of $600 million for the road, which most mining industry experts believe is too low.

If the premier’s office has not done so already, a quick discussion with the engineering experts at the Ministry of Transportation, who have been building roads in Ontario for more than a century, should settle this cost issue.

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NORCAT gets $1-million mining equipment simulator – by Ben Leeson (Sudbury Star – November 14, 2013)

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

Northern Ontario miners will soon have a hands-on, off-the-job training opportunity. The Northern Centre for Advanced Technology (NORCAT) announced a partnership with the Ontario government, mining companies and Laurentian University to create a mining simulation training centre during a press conference at NORCAT’s facility on Maley Drive in Sudbury on Wednesday.

With provincial funding of $1 million through the Northern Ontario Heritage Fund Corporation, along with contributions by Vale, Sudbury Integrated Nickel Operations (Glencore) and KGHM International, NORCAT will acquire a 360-degree mining equipment simulator.

“Imagine coming to sit in a physical pod, to sit in a chair and you’ll have physical controls that might simulate a scoop,” NORCAT CEO Don Duval said. “Your chair will have movement, vibration reality, you’ll have a 360-degree, high-resolution virtual reality screen and it will visualize you moving the scoop, going forward, in reverse.

“It will have scenarios, brake heating … to have that outside of the operation training opportunities, for skilled labour to practise, to get the muscle memory, understand how to do these elements, it’s an exciting complement to some of the existing training programs that some of the private sector has, as well as what we offer at NORCAT.”

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