In a recent Sudbury Star article titled Stalled Ring of Fire worth
more than $117 billion, Carleton University Geology Professor
Dr. James Mungall asked “How much is the Ring of Fire really worth?”
Frank Smeenk is the President and Chief Executive Officer of KWG Resources Inc.
Stainless steel is approximately 18% chrome and 8% nickel with iron constituting most of the remaining 74%. A decade ago, the private Chinese enterprise Tsingshan Group, started to establish facilities in Indonesia to produce large quantities of nickel pig iron to make stainless steel there by adding ferrochrome melt made with coal-generated electricity.
In the first half of 2017 Indonesia produced no stainless steel. Now, Tsingshan produces up to 3 million tons per year there. This will increase to 4 million tons next year. That is about 8% of global production, from zero less than 30 months ago!
With that, Chinese companies currently generate more than 50% of global stainless-steel production. They intend to increase that as the world’s consumption of non-corroding steels continues to grow. This is a big boys’ game that Canada has just been suited-up for!
When chrome-containing chromite was discovered in an area of northern Ontario known as the Ring of Fire, China’s state-owned steelmaker, Baosteel, made a strategic investment in Noront Resources. It’s a Canadian exploration company with significant mining claims in the Ring of Fire.