Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.
A BUSINESS dispute over access to the Ring of Fire mineral belt has escalated to the point where the major player now claims the future of the entire development is threatened. Boardroom machinations are common in business but this goes far beyond a private enterprise spat. Determining how best to bring heavy chromite ore out of a vast tract of muskeg goes to the heart of a mining prospect so rich it stands to transform the moribund Northern Ontario economy and help the province itself recover economically.
So this impasse cannot be allowed to stand. It has to be solved and the province, as governor of mining activity, is the only party that can do it if lengthy court action is to be avoided. So far, however, Ontario has kept its hands off the dispute. That, too, cannot last.
Cliffs Natural Resources and KWG Resources cannot get past a tiff over land control. KWG’s search for diamonds led to the discovery of a mother lode of chromite, essential to stainless steel-making. It and Cliffs, a much bigger company, wound up partners but Cliffs eventually acquired a KWG partner and became the dominant Ring player intent on developing its Black Thor project including a road to bring ore out.
The road, using a desirable ridge of high ground seen as the key transportation corridor out of the Ring, would pass over some KWG claims. KWG remains fixed on its Big Daddy deposit and proposes instead a railroad.