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Ring of Fire News, 2 Aug 11

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The Ring of Fire News blog shares public information in accordance with the Fair Dealing provisions (§29) of the Copyright Act, and is not responsible for the accuracy of the original material.  Inclusion of material or sources here should not imply endorsement or otherwise by the Ring of Fire News blog.


  • KWG sells smelter royalties to raise some money  “TSX V-listed KWG Resources on Tuesday said it agreed to sell smelter royalties in three of its chrome deposits in Northern Ontario’s Ring of Fire to Anglo Pacific Group for $18-million.  KWG owns 28% of the Big Daddy chrome project, with US miner Cliffs Natural Resources owing the rest, and also held a 1% net smelter royalty on the Black Thor, Black Label and Big Daddy assets.  “The group anticipates that the royalties from these chromite deposits, the largest known deposits of chromite ore in North America, will provide long term cash flows and continuing revenue growth for shareholders,” London-based Anglo Pacific chairpserson Peter Boycott said.  Cliffs aims to complete a prefeasibility study on the Black Thor project by September, with a full feasibility due for completion late next year.  First production has been pencilled in for 2015 ….”  (Sources:  KWG news release, stockmarketwire.com and miningweekly.com, 2 Aug 11)
  • Latest quarterly results from CLF  “Cliffs Natural Resources Inc. today reported second-quarter results for the period ended June 30, 2011 . Consolidated revenues were up 52% for the second quarter to a record $1.8 billion, from $1.2 billion in the same quarter last year. Operating income for the second quarter was $617 million, an increase of 69% from the comparable quarter in 2010 …. The Company expects to incur the following growth-related cash outflows …. Approximately $45 million related to its chromite project in Ontario, Canada ….”  (Sources:  company  news release, quarterly report, 27 Jul 11)
  • Sudbury-area MPP:  Sudbury’s still a good place for a smelter (even if nobody else returns reporter’s calls)  “Cliffs Natural Resources of Cleveland has yet to decide where it will build a smelter to process chromite concentrate from its Ring of Fire properties in northwestern Ontario.  A promotional video on the Cliffs’ website about the company’s three chromite deposits in the zone (Black Thor, Black Label and Big Daddy), entitled Value Beneath the Surface, highlights Greater Sudbury as one of the four communities where an enclosed chromite electric arc furnace facility could be built ….  In February, Cliffs indicated in a report it was using Greater Sudbury as a “base case” for a chromite smelting facility and said the site was a “brownfield” or no longer in use piece of industrial land about 25 km from Capreol.  Sudbury Liberal MPP Rick Bartolucci said this week he wants to Cliffs set up the chromite processing facility in Ontario, his preferred site being the proposed location near Capreol.  “As a community, we are making a very, very attractive case why that mining plant should be started in Capreol,” he said.  When asked about the province’s higher hydro rates being a deterrent to Cliffs picking an Ontario site, Bartolucci said it would still make sense to build the facility in this province.  “We have put in place a very, very competitive tax structure that will see the costs offset by the incredible tax benefits the government offers,” he said.  The MPP said the Greater Sudbury Development Corporation is the lead player in the local push to land the processing plant in the Nickel Capital.  Neither Ian Wood, acting director of economic development at the city, nor Doug Nadorozny, the city’s chief administrative officer, could be reached for comment. Company officials could not be reached, either ….”  (Source:  Sudbury Star, 29 Jul 11)
  • Wildlands League, Noront to Ontario:  Help First Nations develop land use plans  “The Canadian Parks and Wilderness Society’s Wildlands League and Noront Resources Ltd. are coming together and urging the Ontario government to begin land use planning with First Nations communities within the Ring of Fire chromite deposit.  In a letter addressed to various government ministers, the public interest group Wildlands League and Canadian mining company Noront highlight the “urgent need” to develop and approve compressive land use plans that will protect First Nations’ land while preventing delays and missteps for mining companies developing in the area.  “What First Nations communities need to see is the options available to them and the cost and benefits of those options,” said Anna Baggio the director of conservation and land use planning at Wildlands League.  Land use agreements are part of the government’s Far North Act, which aims to protect 50 per cent of Northern land (225,000 kilometres) from development while providing stability for mining companies exploring and developing in Northern Ontario. Baggio said land use agreements with First Nations communities and should have been implemented last fall when the Far North Act was initially passed …. “What it is, is getting a plan and moving that plan forward. Time is of the essence and the sooner development happens the sooner we are able to develop projects that are socially and environmentally responsible,” said Noront Resources’ president and chief executive officer Wesley Hanson …. “There are some companies that have not come to the table to sign exploration agreements, but more are becoming aware now,” said Webequie’s head band councillor Elcie MacDonald. “Nothing is going to come out of it unless they sign the exploration agreement.” …. Noront Resources and the Wildlands League said that without a plan to replace land use agreements, the path to responsibly and effectively developing Ring of Fire could be damaged.  “The First Nations knowledge is vital to consider in any type of infrastructure development because they have traditional areas that would impact them and knowing those areas in advance and being able to plan out development without impacting the traditional way of life of life in communities,” said (Noront CEO Wes) Hanson.  Baggio said the letter has yet to prompt a response from the government, but she does expect that the Ministers will respond.”  (Source:  Kenora Daily Miner & News, 27 Jul 11)

Summary of more open source information and sources cited (1 Jul – 2 Aug 11) also available here (PDF).

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