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Ontario Mining

[Ring of Fire] Communications Issues Need To be Addressed for A Solid Future – by James Murray (February 5, 2011)

Founded in 2006 by James Murray, NetNewsledger.com offers news, information, opinions and positive ideas for Thunder Bay, Ontario, and for Northwestern Ontario. This column was originally posted on February 5, 2011. newsroom@netnewsledger.com

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

THUNDER BAY – The signals are all on the table for anyone willing to read them. First Nations in Northwestern Ontario are not prepared to accept lip service from the provincial government on the Ring of Fire. The issue is one that has been coming for sometime now, and has not been covered all that much in the main-stream media. Comments from Matawa First Nations leaders, and Nishinawbe Aski Nation leaders have ranged from frustration to anger. Already there is word of blockades on-going to stop activity related to mining exploration.

To quote a famous movie line from Cool Hand Luke – “What we have here is a failure to communicate”.

Now too be sure, no politician is likely to agree with that statement. There has been lots of talking going on, but for communication to happen, there must be both a sender and a receiver. It is looking more all the time that there is lots of talking, but not much listening. We have years of what appears to be lip service paid by Premier McGuinty. The Premier is likely damaging the ability of his Minister of Northern Development, Mines and Forestry to actually achieve anything substantive. McGuinty has poisoned the well with years of happy promises that he has not delivered on.

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PDAC Mining Meeting Means Millions to Metro Toronto

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.
 

The Ontario Mining Association salutes fellow industry organization the Prospectors and Developers Association of Canada for its upcoming annual international conference, which is projected to pump more than $45 million into Toronto’s local economy.  The PDAC, which started in 1932, will be holding its International Convention, Trade Show & Investors Exchange from March 6 to 9, 2011 at the Metro Toronto Convention Centre (MTCC).

Last year, this global event, which brings the world’s mining industry to Ontario’s capital, attracted a record 22,000 registered delegates.  More than 25% of the participants were international coming from 118 different countries.  At the trade show, 357 companies and governments occupied 608 booths and 584 companies participated in the investors’ exchange.

The PDAC reports that for this year, registrations are running well ahead of last year’s pace and downtown hotels have sold out faster.  Already, 10 major downtown hotels with room rates from $159 to $254 per night are posting no vacancy signs during the convention.  Delegates seeking accommodation are being forced to move further afield from the MTCC.

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NEWS RELEASE: Nishnawbe Aski Development Fund (NADF) calls on the Ontario Government to reduce power rates to keep Chromite Plant in Northern Ontario

Nishnawbe Aski Development Fund is a non-profit economic development agency providing financial assistance (commercial loans, equipment leasing and grants), resource sector support and free business counseling services to ALL Aboriginal entrepreneurs in rural, urban and isolated communities across northern Ontario (Treaty #9, #3, #5-Ontario portion & Robinson-Superior 1850 Treaties).

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

Thunder Bay ON, February 8, 2011 – Nishnawbe Aski Development Fund (NADF) called upon the Ontario government today to find a solution to the high power rates that might deter the construction of Cliffs Natural Resources’ Ferrochrome Production Facility in northern Ontario.  “Several Aboriginal businesses will benefit from the development of this facility, and if not, we stand to miss out on many opportunities”, said Harvey Yesno, President/CEO of NADF. “The Province of Ontario needs to be more visible and aggressive in tackling the power rate issue that is threatening the viability of a production facility in northern Ontario because any final decision to locate the Ferrochrome Production Facility outside of the province negatively impacts Aboriginal business in the region”.

This claim was issued in response to Cliffs’ revelation on Friday, February 4, 2011 during its conference call with the media that while Sudbury had been identified as a ‘base-case’ location for its Ferrochrome Production Facility (FPF), other municipalities within and outside Ontario were not beyond approach and possible selection as a location for its  FPF.

Citing the technical issues regarding the lack of electricity in the northwest part of the province, Mr. Yesno said, “Many people now understand what our remote communities are facing on a regular basis when we can’t develop economically because of the chronic lack of electricity.

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Ring of Fire in James Bay Lowlands – by Edgar J. Lavoie (June 2008)

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. This article is from the June, 2008 issue.

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

The man with a dream sits on a wooden bench 190 kilometers north of the Albany River and 240 kilometers west of James Bay.

Neil Novak, P. Geo., is wearing two hats today, the real one of which reads Spider Resources Inc., and the other is the shirt he is wearing, which spells out Noront Resources Ltd.  Novak is President and C.E.O. of Spider (SPQ:TSX-V) as well as Vice President/Exploration of Noront (NOT:TSX-V).

The kitchen tent is not a quiet place this morning.  The two cooks clatter about.  Men bundled up against the minus 17 degrees C. stomp in and out.  They relish the respite from a stiff wind out of the northwest.  They stomp around on the wooden floor in insulated rubber boots as they grab a coffee or sit down for a sandwich.

A Cessna Grand Caravan, courtesy of Billiken Management Services Inc., has just shuttled the writer and the photographer Jim Guillemette from Nakina airport – the end of the paved road – to an ice strip on McFauld’s Lake in the subarctic.

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NEWS RELEASE: Northern [Ontario] Industry Gutted by High Hydro Prices, Minister Hints at Sweetheart Deal

Randy Hiller is the provincial Progressive Conservative Member of Parliaiment for the eastern Ontario riding of Lanark, Frontenac, Lennox & Addington. Currently Mr. Hiller serves as the Opposition Critic for Northern Development, Mines and Forestry, and Opposition Critic for Labour. www.randyhilliermpp.com

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

Northern Industry Gutted by High Hydro Prices, Minister Hints at Sweetheart Deal 

Monday, 07 February 2011

Queen’s Park – It is unacceptable for a government to indicate that they may set one hydro price for one company while others are suffering, but that’s exactly what Dalton McGuinty’s government seems to be doing. Randy Hillier, PC Party critic for Northern Development, Mines and Forestry today blasted comments by the government that there was room for discussion on high hydro prices in exchange for a new Ferrochrome processing facility.

Cliffs Natural Resources, a company interested in the Ring of Fire development, released a statement last week saying they would be willing to build a new processing facility, but were unable to proceed due to inordinately high hydro prices. In response, Minister for Northern Development Michael Gravelle stated “I certainly recognize that we will need to become engaged in serious discussions with Cliffs related to the energy issues associated with a processing facility.”

“Is the Minister going to cut this company another McGuinty Sweetheart Deal?” asked Hillier. “Where were the special sweetheart deals for the Xstrata smelter which closed in Timmins due to exorbitant hydro prices just months ago, laying off hundreds of workers?

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NEWS RELEASE: Ontario’s Ring of Fire – hope or hype? MiningWatch releases report on Ring of Fire economics

MiningWatch Canada is a pan-Canadian initiative supported by environmental, social justice, Aboriginal and labour organisations from across the country. It addresses the urgent need for a co-ordinated public interest response to the threats to public health, water and air quality, fish and wildlife habitat and community interests posed by irresponsible mineral policies and practices in Canada and around the world. http://www.miningwatch.ca/

In reality, MiningWatch Canada is a well-known anti-mining, non-governmental organization (NGO). Although MiningWatch is disliked by many in the mining sector, some of the environmental and social issues that they bring up, are legitimate concerns that are generally addressed by the industry. – Stan Sudol

For the MiningWatch Canada report written by Joan Kuyek, please click here: Economic Analysis of the Ring of Fire Chromite Mining Play

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

Ontario’s Ring of Fire – hope or hype? MiningWatch releases report on Ring of Fire economics

Feb 04 2011

Since a major staking rush in 2007, mineral deposits in northern Ontario’s “Ring of Fire” have received considerable attention from the mining industry, the Ontario government, First Nations and non-governmental organisations. The mineral finds in the area are raising hopes about economic boom-times, while First Nations struggle to deal with the onslaught of mining claims and exploration activities on their traditional territories, and conservation groups raise concerns about protecting critical wildlife habitats and water systems.

A new report, commissioned by MiningWatch Canada and written by Joan Kuyek, cuts through the hype and raises important questions about the viability and potential benefits of developing the area’s chromite deposits.

The report points out the uncertainty around demand for stainless steel (the primary use of chromite), and the challenge that Ring of Fire proponents will have in competing with existing operations currently operating below capacity. The remote location, lack of infrastructure, power demands, and water management challenges will add costs and technical challenges to any new mine in the region.

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Mining clusters fuel economic growth – by Indira Singh (September, 2006)

Interrelated industries and institutions drive wealth creation

Clusters are a group of interrelated industries and institutions that drive wealth creation primarily through innovation and the export of goods and services. Clustered industries mutually reinforce and enhance
competitive advantage by acting as each other’s consumers, competitors, partners, suppliers and sources of research and development.

The Ontario Mineral Industry Cluster (OMIC) includes exploration companies, major mine operators, service and equipment suppliers, labour, training and education institutions, associations and other allied entities. Other well-known clusters include Hollywood, California’s Silicon Valley, Ottawa’s Silicon Valley North, the Netherlands’ cut flower industry and Houston’s oil and gas sector.

Over the last decade, clusters have attracted substantial attention from policy makers, legislatures, business leaders, academics, economic development practitioners and development agencies around the world.
Governments with widely differing ideologies in more than 30 countries and in the majority of U.S. states have adopted cluster-based economic development models. The cluster approach is also used by European governments, as well as governments in the Asia-Pacific region.

Why clusters work

Productivity and productive growth are the fundamental drivers of prosperity. Innovation is the key driver of productivity. Clusters drive innovation, economic growth and development.

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NEWS RELEASE: Canada maintains number-two spot for exploration in 2010

Metals Economics Group’s 21st Corporate Exploration Strategies study

U.S. dollar currency is used throughout this press release

Worldwide nonferrous exploration budgets by region, 2010
(more than 2,200 companies’ budgets, totaling US$11.5 billion)

(Note: The annual budget totals for Canada, Australia, and the United States
are typically much larger than those of most other countries; as a result,
MEG treats these countries as individual regions in its CES studies.)

Vancouver, British Columbia, January 24, 2011 – Canada maintained the regional number-two spot for planned exploration spending in 2010, attracting 19% of worldwide nonferrous exploration allocations. According to Metals Economics Group’s Corporate Exploration Strategies (CES), Canada has held second place for nine years since overtaking Australia in 2002. (Metals Economics Group’s study covers expenditures for precious and base metals, diamonds, uranium, and some industrial minerals; it specifically excludes iron ore, aluminum, coal, and oil and gas.)

Four provinces—Ontario, Quebec, Saskatchewan, and British Columbia—accounted for more than three-quarters of the $2.2 billion in planned Canadian nonferrous exploration spending in 2010. Of the 710 companies that planned to explore in Canada in 2010, 90% were based in Canada, together contributing 79% of the planned Canadian nonferrous exploration total. Worldwide, Canadian-based companies accounted for more than half of the 2,200+ active explorers covered by the 2010 edition of CES, and together accounted for 41% of the 2010 global exploration budget total.

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High Ontario Electricity Prices Hamper Ring of Fire Processing and Other Industry – by Livio Di Matteo

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario.  Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

Ontario’s competitiveness has been hampered by its high electricity costs
and any mining development in the Ring of Fire will be purely extractive with
little in the way of value added processing if electricity costs remain high.
(Livio Di Matteo , February, 2011)

The news that Cliffs Natural Resources believes the price of electricity in Ontario is too high to allow for value added mineral processing from the Ring of Fire should not come as a surprise to those who have followed the recent decimation of the forest sector and it’s struggle with higher energy costs.  The impact of high electricity costs goes beyond Ontario’s North and any potential development in the Ring of Fire. 

Ontario’s industrial advantages were historically rooted in the advantages of its proximity to American markets and the Great-Lakes-St. Lawrence waterway, the presence of natural resources and the availability of cheap energy in the form of hydroelectric power. Whereas Ontario once had some of the cheapest electricity in North America, today it has become one of the higher cost producers. 

Just how high Ontario’s electricity costs got relative to adjacent Manitoba and Quebec is illustrated in the accompanying figures for the period 2000 to 2010.  (Please go to Di Matteo’s blog for figures) The data is for the electric Power Selling Price Index (EPSPI) constructed by Statistics Canada to measure the price movements of sales of electricity by distributors to commercial and non-residential users with the year 1997 set equal to 100.  The indices are for two broad industrial categories of sales – less than 5000 kW or 5000 kW and more. 

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Sudbury could host Ring of Fire chromite processing – by Ian Ross

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. This article is from a Feb/4/11 website posting.

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

Chromite ore mined in the Ring of Fire by Cliffs Natural Resources may potentially be processed in Sudbury. The city is the front-runner to host the ore processing from a chromite deposit in the Northern Ontario’s Ring of Fire.

Cliffs Natural Resources released a much-anticipated Feb. 4 project description of its Cliffs Chromite project in the James Bay region.

The international iron ore and coal miner is eyeballing a brownfield site near Capreol in the north end of Sudbury. Canadian National’s main cross-Canada line runs through the suburb of 3,800.

In what Cliffs is referring to as a “base case” scenario, ore will be transported down a proposed permanent haul road – of roughly 300 kilometres — from the Black Thor chromite deposit to a multi-modal facility near Nakina and then loaded onto the Canadian National Railway main line for delivery to Sudbury for final processing.

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NEWS RELEASE: Ring of Fire Lake Nipigon First Nations and Matawa First Nations Leadership ready to tackle mining and infrastructure issues together

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

Thunder Bay, ON, February 4th, 2011– The Lake Nipigon First Nations and Matawa First Nations Chiefs are forming a united front when it comes to mining and infrastructure issues. The Chiefs met yesterday to initiate discussions on entering into a memorandum of understanding to work cooperatively together on common issues directly related to mineral development.

The Chiefs agreed to a framework on the issues the memorandum will undertake. Three key issues including the location of the proposed chromite processing plant, the transmission line from Nipigon to Little Jackfish and exploring economic and infrastructure opportunities, are going to form the initial content of the memorandum.

Chief Sonny Gagnon states; “The chromite will be taken from the traditional territories of the First Nations people; it only makes sense that we the First Nations people must have direct benefit from the construction and operation of the chromite processing facility. Matawa First Nations strongly stands behind the request that the processing facility be located in the Greenstone area”.

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NEWS RELEASE:Cliffs Natural Resources Releases Northern Ontario Chromite Project Information to Facilitate Stakeholder Discussions [Ring of Fire]

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

CLEVELAND, Feb. 3, 2011 /PRNewswire/ — Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today, in connection with its ongoing discussions with stakeholders, released preliminary project information for potential development of its Black Thor chromite deposit in the McFaulds Lake or Ring of Fire area of Northern Ontario.

(Logo: http://photos.prnewswire.com/prnh/20101104/CLIFFSLOGO )

Cliffs Chromite Project involves the largest known North American chromite deposit, located in one of the most remote areas of Ontario, the Far North. Exploration to date has consisted of geophysics and diamond drilling to delineate the Black Thor chromite zone. The current inferred mineral resource estimate indicates the Black Thor deposit contains approximately 69.5 million tonnes at a grade of about 31.9% Cr2O3.

The project information released today presents a ‘base case,’ which reflects one set of realistic options for the major inter-related components of the project – from mining of the chromite ore to ferrochrome production. These ‘base case’ project components do not necessarily represent the final design, location or scope of the project. During the course of prefeasibility, feasibility and detailed design studies, other viable options may be identified and considered.

“Cliffs is currently conducting pre-feasibility studies to more accurately determine the viability of this project,” stated Bill Boor, President, Ferroalloys. “Our work has progressed to a point that enables more detailed and meaningful stakeholder discussions that will impact our decisions about the project.”

The ‘base case’ includes the following major inter-related components:

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OMA Member Profile: Detour Gold — New Ontario Mines From Old Sites

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

 

Ontario Mining Association member Detour Gold is involved in one of the most significant projects in the province turning a former mine site into one of the largest gold mines in Canada.  Detour Gold is investing more than $1.2 billion to bring the property into production by early 2013. 

The mine is located at the end of a paved road approximately 150 kilometres east and north of Cochrane, Ontario, about 10 kilometres west of the Quebec border.  Current studies indicate the property contains mineral reserves of 11.4 million ounces of gold.  The feasibility study calls for a 16 year mine life with an average annual gold production of about 650,000 ounces.  (Detour Gold has just announced an update on its mineral reserves to 14.9 million ounces, a 31% increase.  This is expected to increase the mine life to 21 years. )

“Our team has advanced this mineral project in a responsible and efficient manner,” said Gerald Panneton, President and Chief Executive Officer of Detour Gold.  “Construction of the mining facilities started in November 2010 on this important project for the economy of Northern Ontario, providing significant employment for local and surrounding communities.” 

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OMA Member Profile: Northgate Minerals – New Mines for Old Ontario Sites

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.
 

Ontario Mining Association member Northgate Minerals is building one of the province’s newest gold mines upon the foundation of past producers.  The company is investing $339 (U.S.) million to construct the Young-Davidson Gold Mine.  Production is scheduled to start in early 2012 and plans call for annual production of 180,000 ounces of gold over a 15 year mine life.  Recent exploration results show promise of increasing the 2.8 million ounce reserve, which would extend the mine’s operation beyond that time frame and allow Northgate to increase annual gold production.

Young-Davidson is located near Matachewan in northeastern Ontario and is about 60 kilometres west of Kirkland Lake.  The site covers the operations of two historic gold mines, which produced about 1 million ounces of the precious metal from the mid-1930s to mid-1950s.  Northgate purchased the Young-Davidson property in 2005.

“Our vision since the moment we stepped onto the property has been to build a financially robust and long-life gold mine in one of the best mining jurisdictions in the world,” said Ken Stowe, President and Chief Executive Officer of Northgate.  “Once production commences in 2012, Young-Davidson will become the new cornerstone of our company.”

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Shinning Propects In the Far North’s Ring of Fire Mining Camp – by Ian Ross (May 2010)

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. This article is from the May, 2010 issue.

For an extensive list of articles on this mineral discovery, please go to: Ontario’s Ring of Fire Mineral Discovery

“The cost to produce electricity in Northern Ontario is really quite cheap.
Northern Ontarians are now paying for the very expensive nuclear plants in
Southern Ontario that they need. And our electricity costs should be based
on what it costs to generate electricity in Northern Ontario.”
(Moe Lavigne, KWG VP Exploration and Development)

Power and First Nation cooperation key to developing Ring of Fire mine.

An abundant supply of cheap power will decide whether northwestern Ontario lands any of the processing of chromite ore when a proposed Mc-Faulds Lake mine opens in 2016.

At an investors’ forum in Thunder Bay in early April, Moe Lavigne, KWG’s vice-president of exploration and development, laid out his company’s timelines and challenges on how the Toronto miner plans to develop its Big Daddy deposit in the James Bay Lowlands.

Behind the backing of Cliffs Natural Resources, a Cleveland, Ohio-based iron ore and coal conglomerate, KWG has set up a subsidiary company, Canada Chrome, to bring to life the massive and ambitious mine and railroad project, estimated at $2 billion.

Many one-industry communities along Lake Superior’s north shore are salivating at the opportunity to replace hundreds of lost forestry mill jobs with mineral processing employment opportunities. The manufacturing capacity to process McFaulds Lake chromite will require a concentrator and an electric arc furnace which produces fer-rochrome, a key ingredient in making stainless steel. The processing must be located close to a source of affordable power and rail connections.

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