Ring of Fire News


What's up with the biggest thing happening in mining in NW Ontario?

Ring of Fire News – September 7, 2012

  • Noront shares “positive” feasibility study on Eagle’s Nest    “Noront Resources has released a positive feasibility study for its proposed Eagle’s Nest mine in Ontario’s far northern Ring of Fire mineral zone.  In a Tuesday release, Noront said the updated study confirms the “robust economics” offered by its nickel-copper-platinum group element project in the James Bay Lowlands.  The feasibility study had been slated for release earlier this year, but was delayed when the Ontario government and Cliffs Natural Resources announced an agreement on a proposed chromite mine/mill development near Noront’s Ring of Fire properties.  The Cliffs proposal contemplated an all-season road running north-south from the Ring of Fire zone to the main CN rail line near Nakina. Noront, which had been looking at an east-west corridor via Pickle Lake, reworked its proposal to take advantage of savings offered by the north-south option.  “The decision of the Province of Ontario to financially support the north-south road corridor pending certain approvals is a very positive development in unlocking the mineral wealth of the Ring of Fire,” said Noront CEO Wes Hanson.  He said his company had confirmed that the north-south road would be accessible to all industrial users and that the cost to use it would be based on proportional usage, “a critical consideration for Noront as our concentrate shipments represent less than seven per cent of the currently identified ore haulage along the corridor.” ….”  Source (In Support of Mining blog) – Noront news releasealternate news release link
  • MORE bashing of Cliffs stock  “Coal and iron ore producer Cliffs Natural Resources Inc. (CLF) on Wednesday caught some bearish commentary from analysts at Credit Suisse.  The firm downgraded CLF from “Neutral” to “Underperform” and slashed its price target to $30. That new target suggests an 11% downside to the stock’s Tuesday closing price of $33.68.  Credit Suisse said it made the downgrade based on the company’s exposure to the dramatic fall in iron ore prices.   Cliffs Natural Resources shares fell $1.20, or -3.6%, in premarket trading Wednesday.  The Bottom Line – Shares of Cliffs Natural Resources (CLF) have a 7.42% dividend yield, based on last night’s closing stock price of $33.68. The stock has technical support in the $30-$31 price area. If the shares can firm up, we see overhead resistance around the $39-$41 price levels.  Cliffs Natural Resources Inc. (CLF) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars ….”  Sourcemoremoremoremoremoremoremoremoremoremoremoremoremore
  • More worries about Cliffs exporting raw ore for processing in China   “Concerns that Ontario is planning to give a special ministerial exemption to Cliffs Natural Resources so that the American company can export raw ore from the Ring of Fire out of Canada were raised in the provincial legislature Aug. 28.  The MPP for Timmins-James Bay who brought up the issue was left scratching his head over Northern Development and Mines Minister Rick Bartolucci’s response.  On Aug. 28 NDP MPP Gilles Bisson asked Bartolucci whether the government is “in any way in discussions with Cliffs resources to sign a ministerial permit allowing ore to be shipped out of Canada?”  Instead of answering the question, Bartolucci explained the government’s position on the mining development.  “We are very, very excited about the Ring of Fire,” Bartolucci said in his response. “There are several aspects that the government is speaking to Cliffs about, which will be no surprise to the member from Timmins–James Bay, because we were very, very excited. I think members on both sides of the House were very, very excited when Cliffs decided that they were going to build their processing plant in Ontario.”  Answering a follow up question from Bisson, Bartolucci reiterated his excitement.   “Maybe the member from Timmins-James Bay isn’t excited about the Ring of Fire, but I can tell you that everybody else in northern Ontario is very, very excited,” Bartolucci said. “In fact, the mayor of Timmins is very, very excited. He’s looking for the opportunity that this very exciting project will bring to the people of northern Ontario.”  In an interview after the exchange, Bisson said the minister’s response has left him even more concerned that the government is planning to let Cliffs ship raw ore out of Canada for processing …. “  SourceHansard exchange, 18 Aug 12
  • Thunder Bay, Fort William First Nation want to hear from you on the proposed Mining Readiness Strategy  “Information Sessions are scheduled for Monday, September 17 and Tuesday, September 18 to gather public input into a Mining Readiness Strategy for Thunder Bay and Northwestern Ontario.  The City of Thunder Bay, together with Fort William First Nation (FWFN) and the Thunder Bay Community Economic Development Commission (CEDC) are undertaking the Mining Readiness Strategy to address and strategically plan for economic growth in Thunder Bay and the region. SNC-Lavalin Inc. working with Ed Hoshizaki Development Consulting has been hired to engage communities and stakeholders to determine what will be required to develop mining opportunities.  Research shows that the discovery and development of mineral resources in the “Ring of Fire” and beyond will open up mining opportunities that will have a hand in shaping the region’s economic outlook. Currently Thunder Bay hosts 29 exploration company offices, and over 130 service and supply companies in exploration/mining. Growth in mining will place unique pressures on Thunder Bay and communities in Northwestern Ontario.  The Mining Strategy will address issues related to: transportation and infrastructure needs; industrial energy; workforce training and development; business development; housing and community services; research and development; capital investment and financing; intergovernmental relations; and communications.  The Strategy is in its early stages, and is scheduled to be completed by January 2013. Implementation of the Strategy is anticipated to be completed by the end of 2015.  Two (2) Information Sessions will be held: 1) on Monday, September 17, 2012 from 5:30 to 9:00 pm at Fort William First Nation (FWFN) Community Hall with a presentation at 7 pm to introduce the project, followed by a question and answer period; and 2) on Tuesday, September 18, 2012 from 4:00 to 9:00 pm at the Italian Cultural Centre in Thunder Bay with a presentation at 7 pm, followed by a question and answer period with an expert panel.  For more information, visit http://www.thunderbay.ca/cedcmining.”  SourceInformation session poster (PDF) – About the strategy (City of Thunder Bay economic development arm) 
  • Industry groups agree to make it easier for you to see how much money companies pay out to governments  “….  PWYP-Canada, along with the Revenue Watch, Mining Association of Canada, and Prospectors and Developers Association of Canada, announced the launch of the Resource Revenue Transparency Working Group.  The group aims to develop a framework for the disclosure of payments to governments for Canadian oil and mining companies operating domestically and internationally by June 2013. Once complete, the working group will make policy recommendations to federal government policymakers and/or provincial security regulators for the Canadian adoption of mandatory disclosure requirements based on the framework.  The working group has been formalized by the signing of a Memorandum of Understanding (MoU), which clarifies the objectives and procedural elements of the group. To view the MoU, click here.  The working group will regularly post updates regarding its progress, along with summaries of its discussions. The first meeting of the working group will be held on September 14th, 2012 ….”    SourceMemorandum of UnderstandingQuestions & Answers

More open source information (excerpts from information monitored 17 Aug-7 Sept 12 (PDF) here. All information shared here in accordance with the Fair Dealing provisions (§29) of the Copyright Act. The blog is not responsible for the accuracy of the source material, and inclusion of material doesn’t mean endorsement.


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