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Ring of Fire News – October 13, 2012

  • CBC Claim ….  “CBC News has learned Cliffs Natural Resources is not locked into its decision to build a smelter near Sudbury.  Documents obtained through Freedom of Information reveal the American company’s plans to shop around for the best deal on electricity prices and tax rates.  In an e-mail to his colleagues, Bill Thornton with the Ministry of Northern Development and Mines recapped some “confidential highlights” from a 2011 meeting with Cliffs.  “Not mentioned in the document [Cliffs’ base case] is the fact that Cliffs will also examine whether other jurisdictions outside of Ontario offer better costs (sic) advantages for locating their ferrochrome production facility.”  Minister of Northern Development and Mines Rick Bartolucci has said the province is taking advantage of the Ring of Fire deposit to further open up economic opportunities in northern Ontario. Earlier this year, the province signed a deal with Cliffs to locate its smelter in Sudbury, Ont. But ministry officials now say the details still aren’t finalized. A slide from a Minister’s office briefing from Dec. 16, 2011 labelled “confidential draft for discussion” said: “Cliffs base case scenario has identified a potential site north of Sudbury (Capreol) but intelligence suggests that Quebec has been aggressively lobbying for a site near Becancour where there is an existing industrial complex supporting aluminum production.” ….”  Source    (Ed. Note:  notice that as of this post, CBC is not sharing the document, giving no sense of what else is there, and that the Ministerial briefing material is dated ~6 months before Cliffs announced their Sudbury decision – and told the Mayor of Royun-Noranda that the processing facility was not going into Quebec, here in French and here in Google English)
  • …. and Cliffs Counterclaim  “A CBC News report claiming that Cliffs Natural Resources ‘is not locked into its decision’ to build a smelter near Capreol is just plain wrong, the company says.  “That is an inaccurate report out of CBC,” Patricia Persico, a Cliffs spokesperson, said in a release. “If you read the article, it is referencing 2011 discussions.  “At that time, Cliffs was exploring various locations in Ontario and Quebec. We made the announcement in May 2012 that our decision for the ferrochrome processing facility will be in Sudbury.  “I hope this clears up the confusion and inaccurate report issued today.” …. a spokesperson for Northern Development and Mines Minister Rick Batolucci, said the CBC story appears to be based on outdated information.  “The information they used was from an FOI request from 2011, at which time Cliffs had not made their decision,” Laura Blondeau said. “So yes, in 2011, Cliffs had not decided … but then on May 9, 2012, they announced that their location was Sudbury.  “I hate to say it was an error, but it’s not accurate.” ….”  Source
  • MORE Cliffs Analysis!  “It has been an ugly few months for the steel industry, as prices have dropped considerably on worries about a slowdown in China. The one stock I hold connected to the sector is Cliffs Natural Resources (CLF). The stock has vastly underperformed the market over the last three months (see chart). However, it is having its best day in the market in three weeks today on an uptick in steel prices. The stock may have reached an inflection point and should be considered by aggressive, contrarian investors ….”  Source  – moremoremoremoremoremore
  • NDP MPP for Kenora to Pull a Rabbit Out of a Hat for the Ring of Fire?   “…. The area known as the Ring of Fire possesses billions of dollars of economic potential that can help bring new prosperity to our region. This is in addition to the opportunities that appear on the horizon in many communities across Northwestern Ontario. The key to unleashing this potential is making the right decisions.  It’s about ensuring that the Ring of Fire is serviced by an East-West access corridor that will link many of our communities to economic benefits. It’s about ensuring that the resources that are extracted in our region are also processed in our region.  In the coming weeks I will be bringing forward my first Private Members’ Bill as a Member of Provincial Parliament. The goal of this bill will be to unlock some of this potential and to open up opportunities for communities across the north.  Before it is debated at the end of November, I will bring the draft bill forward for your input and suggestions. As I have said many times, we can make a difference as long as we work together ….”  Source
  • More Reaction to Changes in Ontario’s Mining Act  “Changes to century-old mining rules in Ontario could mean delays and added costs for hundreds of explorers in a $1 billion industry that provides a crucial source of new deposits for global metal producers ….”  Source  – more

More open source information (excerpts from information monitored 14 Sept – 12 Oct 12 (44 page 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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