Republic of Mining

[Northern Ontario] Chromite mine may carry hidden costs, critics charge – by Tanya Talaga (Toronto Star – May 11, 2012)

May 11, 2012

The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Questions are being raised about how much taxpayers are on the hook for as a U.S. mining giant attempts to develop of an ecologically sensitive area in northern Ontario.

The Ontario government announced Wednesday it had reached an initial agreement with Cliffs Natural Resources Inc. to develop a chromite mine at the remote Ring of Fire region.

Cliffs is expected to invest $3.3 billion into building a mine, nearly 500 kilometres northeast of Thunder Bay, a smelter in the Sudbury area and a transportation corridor to move the ore between the two facilities.

Sources tell the Star the Liberal government is negotiating a deal on electricity subsidies in order to keep the smelter in the province. Also on the table is said to be construction of a transportation corridor to move the chromite south. On Thursday, Northern Development Minister Rick Bartolucci refused to talk about any possible subsidy.

Honourable Rick Bartolucci, Minister of Northern Development and Mines – Cliffs Sudbury Ferrochrome Smelter Announcement (Sudbury – March 9, 2012)

May 11, 2012

Today it is my pleasure to share news with you that is exciting and historic in nature… Ontario is blessed with an abundance of natural resources at a time when the world is developing faster than ever, and demanding these resources.

The increasing demand is why mining is experiencing unprecedented growth. It is driving economies and progress around the world. We must take advantage of the incredible opportunity for jobs and prosperity that this sector presents for northern Ontario – including our First Nations communities, and our province as a whole.

And today, I’m happy to say that this boom is again being demonstrated right here in Sudbury, and across the north.

Ring of Fire – Chromite

The Ring of Fire, located over 500 km North of Thunder Bay, is the only substantial deposit of chromite in North America… In fact, it is estimated that it will yield an estimated 2.3 million tonnes of chromite per year over a 30-year mine life.

What makes this massive discovery of chromite exciting is that it is a key component in the manufacture of stainless steel…

…A material needed around the world, and used in basically most things we use in the course of our day to day lives.

Alberta may be tight oil hot spot – by Claudia Cattaneo (National Post – May 11, 2012)

May 11, 2012

The National Post is Canada’s second largest national paper.

CALGARY — Athabasca Oil Sands Corp.’s name change Thursday to Athabasca Oil Corp. reflects its new focus on tight oil – and industry’s rush to the new technologyintensive play type that could see Alberta emerge as another North American hot spot.

Only two years after expanding into tight oil in Alberta, the former oil sands pure play has been so successful unlocking oil from shale and sandstone formations it expects them to produce as much as 10,000 barrels a day by the end of the year – while its oil sands projects are still under development.

Sveinung Svarte, president and CEO of Athabasca, said he sees huge tight oil potential in Alberta, where the geology is similar to prolific tight oil plays such as the Bakken in North Dakota and the Eagle Ford in Texas.

“The Duvernay, the Montney and the Nordegg are probably going to be one of the most active development areas in Canada, similar to activities in the Bakken, with similar results,” Mr. Svarte said after addressing the company’s annual meeting in Calgary.

Industry quiet as public concern grows over China’s energy influence in Canada – by Jameson Berkow (National Post – May 10, 2012)

May 11, 2012

The National Post is Canada’s second largest national paper.

China’s growing influence in oil sands development might be the most important issue facing Canada’s energy sector that nobody is talking about.

Canadian companies have happily accepted billions of dollars in investments from Chinese state-owned enterprises in recent years on the basis that the energy-hungry emerging Asian superpower will soon be their best customer.

Meanwhile, as the public grows increasingly concerned about the potential importation into Canada of questionable Chinese corporate practices and opposition politicians raise questions of possible interference with Canada’s national interests, industry associations, environmental groups and the government of Canada itself have stayed mute.

“Any enterprise that is owned by another nation state raises sovereignty issues, but in the case of China the security advisors to the government of Canada for a long time have expressed particular concern about Chinese influence,” Elizabeth May, leader of the Green Party of Canada, said in an interview this week.

[Northern Ontario] Mayors fed up – by By Gord Young, QMI Agency (Timmins Daily Press – May 11, 2012)

May 11, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

Frustration boils over at FONOM conference

Frustration turned to anger Thursday as municipal politicians from across Northern Ontario screamed outrage over the provincial government’s silence regarding the divestment of the Ontario Northland Transportation Commission.

Municipalities and chambers of commerce from across the North were urged to lower their Ontario flags to half mast as disenfranchised and fed up mayors demanded a new deal for Ontario Northland.

“You have ignored the North for too long. You have taken us for granted. And we won’t stand for it any longer,” said North Bay Mayor Al McDonald, during a news conference involving politicians and business leaders representing just about every community in Northern Ontario.

The event, held in the midst of the Federation of Northern Ontario Municipalities (FONOM) conference in North Bay, saw mayor after mayor slam the provincial government for leaving Northerners out of its decisions.

NDP wants answers on Cliffs – by Star Staff (Sudbury Star – May 11, 2012)

May 11, 2012

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

Cliffs Natural Resources’ $3.3- billion investment in Northern Ontario is good news, Ontario NDP leader Andrea Horwath says, but the province should demand more.

The massive mine, transportation network and ferrochrome smelter designed to take ore from the Ring of Fire in northwestern Ontario and process it in Sudbury was announced by Cliffs on Wednesday. Those announcements, however, left the NDP with more questions than answers, Horwath said.

At Queen’s Park on Thursday, Horwath released details of Cliffs’ testimony before a federal Standing Committee on Natural Resources in which Cliffs officials said up to 40% of the ore produced in Ontario might be shipped out of province for processing.

While the company is committing to building a $1.8-billion smelter at a brownfield site just north of Capreol, the NDP want to know how much more investment in the North would be possible if all the ore it generates is processed here.

Cliffs Chromite Project: Answers Needed Before Decisions are Made – by Steve May (SudburySteve.blogspot.com – May 10, 2012)

May 11, 2012

http://sudburysteve.blogspot.ca/

Steve May is the CEO of the Sudbury Federal Green Party Association (Opinions expressed in this blog are my own, and should not be interpreted as being consistent with the views of the Green Party of Canada – Steve May)

I read with interest today a number of news reports related to the announcement that Cliffs Natural Resources will be investing approximately $3.3 billion in Ontario, to build a chromite mine in the Ring of Fire, and a ferrochrome processing facility in my city, the City of Greater Sudbury. That Cliffs has been pushing ahead with developing the Black Thor deposit in the Ring of Fire has been no secret. What was up in the air, however, was the selection of a community to host the prized ferrochrome processing facility (smelter), which is expected to generate approximately 400 operational jobs, and an additional 400 construction jobs.

Today’s announcement identifying the Moose Mountain site outside of the Capreol community in the City of Greater Sudbury as the new home for the smelter was one of the worst-kept secrets in Northern Ontario. While the communities of Greenstone, Thunder Bay and Timmins were also in the running, Cliffs has been proceeding since the fall of 2011 with an Environmental Assessment process based on a “base case scenario” which identified Moose Mountain as the site of the smelter, and media has since reported that Cliffs has actually purchased the Moose Mountain site.

[Northwestern Ontario should] Make the most of mine project – Thunder Bay Chronicle-Journal Editorial (May 10, 2012)

May 10, 2012

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario. This commentary came from the Chronicle-Journal’s Letters to the Editor section.

IT is unfortunate that the biggest economic news to hit Northern Ontario in years is being met with opposition and animosity. Disappointment at some aspects of the biggest of the Ring of Fire mining proposals is understandable — you can’t always get what you want. But making the most of what they can get is what municipal and First Nations leaders must now do on behalf of their people. Complaining at this point achieves nothing.

Cliffs Natural Resources surprised no one Wednesday by picking Sudbury as the site for its $1.8-billion ferrochrome smelter, the jewel in a mining development that will have widespread benefits throughout the region. Those who seize the initiative and hold on tight will benefit most, while reluctant parties will get what’s left.

The best-case scenario for the Northwest would have been to have the whole $2.75-billion shebang — the mine, the transportation corridor and the smelter (unless, of course, you don’t relish the environmental impact of a 300-megawatt furnace).

Instead, this region gets the first two while Sudbury — long the mining centre of Northern Ontario with the infrastructure and expertise Cliffs needs — gets the ferrochrome processor to make the ingredients for stainless steel.

Sombre ceremony marks 20th anniversary of Westray mine explosion – by Michael Tutton, The Canadian Press (Canada.com – May 9, 2012)

May 10, 2012

http://www.canada.com/index.html

NEW GLASGOW, N.S. — High school students placed white roses on the Westray mine disaster memorial Wednesday during a ceremony that urged future generations to never forget the importance of worker safety.

Twenty-six flowers were laid on the dark granite stone, one for each of the miners whose names are etched into the memorial of the May 9, 1992 disaster.

Under leaden skies that delivered a steady downpour, Rev. Glen Matheson gave an account of the history of mining disasters, saying the explosion in Plymouth, N.S., at the Westray mine had been among the worst in Canadian history.

He read from the public inquiry into the disaster, which found that it was the result of “incompetence, mismanagement, bureaucratic bungling, deceit, ruthlessness, coverups, apathy, expediency and cynical indifference.”

Cliffs Natural Resources to invest $3.3 billion to develop Ontario Ring of Fire – by Keith Leslie, The Canadian Press (Canadian Business Magazine – May 09, 2012)

May 10, 2012

Founded in 1928, Canadian Business is the longest-publishing business magazine in Canada.

TORONTO – Ontario announced a $3.3-billion investment by an American mining company Wednesday to develop the Ring of Fire, a huge mineral deposit near James Bay, but faces opposition from some First Nations, local communities and environmentalists.

Cliffs Natural Resources plans to build a chromite mine, a road to the area about 500 kilometres northeast of Thunder Bay and a processing facility near Sudbury, said Northern Development and Mines Minister Rick Bartolucci.

The Ring of Fire includes the largest chromite deposit ever discovered in North America. The $1.8-billion proposed smelter in Capreol would create about 900 jobs, including 450 when it’s in operation by 2015, and would process the chromite into a key component of stainless steel, Bartolucci said in Sudbury.

“There was stiff competition with other jurisdictions for the location of this smelter and those jurisdictions were outside the province of Ontario,” he said.

Involve First Nations early to avoid disputes, leaders say – by Rick Garrick (Wawatay News – May 9, 2012)

May 10, 2012

http://www.wawataynews.ca/

National Chief Shawn A-in-chut Atleo is calling for First Nations to be involved from the outset in resource development.

“Currently, First Nations are often the last to know about major resource development,” Atleo said during his April 23 economics of reconciliation speech at the Canadian Club of Toronto. “This relegates our communities to few options and usually results in confrontation. So we end up with protests and legal battles that frustrate opportunity for everyone and deepen tensions today and in the future.”

Kitchenuhmaykoosib Inninuwug Chief Donny Morris said the government has to let his community know when resource development is being discussed for their traditional territory.

“We need to be in the driver’s seat,” Morris said. “This is our territory and when two companies are being bought out by the government, obviously there is something there. The government is acknowledging our veto to say no, but it is taking them too long to come to the forefront, where they basically buy out these companies.”

Ontario moves to open up Far North with $5.1-billion chromite deal – by Tim Shufelt (National Post – May 10, 2012)

May 10, 2012

The National Post is Canada’s second largest national paper.

“It’s a very high-quality chromite, which is a very important strategic metal,”
said Stan Sudol, a communications consultant and blogger at republicofmining.com.
“There are no substitutes for it. And there are only three major countries in the
world that produce it: South Africa, Kazakhstan and India.” … The trillion-dollar
Sudbury Basin is by far Canada’s biggest resource discovered to date, having
yielded base metals for more than 100 years, Mr. Sudol said. (Financial Post)

The government of Ontario took a big step toward unearthing the geological treasures of the province’s Far North in announcing an investment to develop the first mine in the mineral-rich Ring of Fire.

Cliffs Natural Resources Inc. plans to invest $3.3-billion to establish a chromite mine west of James Bay and build a $1.8-billion smelter near Sudbury, the province said Wednesday.

And since the Ring of Fire is inaccessible by road or rail, hundreds of kilometres of new all-season road will be built to truck the ore south.

Improving access to Ontario’s northern expanses could lead to the discovery of additional base-metal deposits with immense economic potential.

Cliffs’ ‘world class’ chromite project gets Ontario Govt.’s ardent support – by Dorothy Kosich (Mineweb.com – May 10, 2012)

May 10, 2012

www.mineweb.com

Cliffs Natural Resources board approves advancing the proposed C$3.3bn project in the Ring of Fire area of Northern Ontario to the feasibility stage.

RENO (MINEWEB) – Ontario’s provincial government, led by Premier Dalton McGuinty, Wednesday announced its support for global iron ore miner Cliffs Natural Resources’ proposal to build a Cdn$3.3 billion chromite mine, transportation corridor and processing facility in Northern Ontario’s Ring of Fire.

In a news release, the government noted, “The Ring of Fire represents one of the most significant mineral regions in the province and includes the largest deposit of chromite ever discovered in North America.”

The Cliffs Chromite Project is expected to have substantial benefits in the Far North, and in northern Ontario. The entire project could employ as many as 1,250 people. The McGuinty government believes the project will also generate hundreds of indirect employment opportunities for Northern Ontarians and First Nations communities.

NEWS RELEASE: Ring of Fire decision ill-considered says Greenstone Mayor

May 10, 2012

(Greenstone, May 9, 2012) Mayor Renald Beaulieu of Greenstone, the closest municipality to the Ring of Fire mineral find, was underwhelmed by today’s announcement from Cliffs Natural Resources to locate the chromite refinery near Sudbury.

“It is truly unfortunate that Cliffs and the Provincial Government chose not to meaningfully consult with the directly affected First Nations and Greenstone prior to making and announcing their decision,” stated Mayor Beaulieu.

Important questions remain unanswered by Cliffs and the Province said Beaulieu. In particular, it’s hard to see how you can lead with a decision on a refinery location without an agreement on how you are going to obtain the ore body in the first place.

– Why are First Nation interests being ignored? Today’s update confirms the suspicion of First Nations that a secret deal has been worked out between the Government of Ontario and Cliffs. That deal doesn’t place any value on the support First Nations have offered for the project nor does it take their position on the mining activity seriously.

How to sustainably turn Canada’s resources into wealth – by Brian Emmett (Globe and Mail – May 7, 2012)

May 10, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Brian Emmett is a principal at the Ottawa-based consulting firm Sussex Circle. He served as Canada’s first commissioner of the environment and sustainable development, and was an assistant deputy minister (policy) at Environment Canada, a vice-president (policy) at the Canadian International Development Agency and an assistant deputy minister (Canadian Forest Service) at Natural Resources Canada.

The way policy-makers and Canadians think about natural resources (fossil fuels, minerals and forest resources) is fundamentally important to the Canadian economy. How we perceive and evaluate our natural resource endowment shapes policy frameworks, which, in turn, can have profound effects on the way we live and the way we earn our living.

Prime Minister Stephen Harper touched on this during the Summit of the Americas in Cartagena last month, saying: “Resource development has vast power to change the way a nation lives. … It is also something which is tremendously responsive to actions of government.”