Tory #RingOfFire, Resource Revenue Sharing Promises?

Following the June 7th election (link to overall results), Ontario’s Conservatives will form a majority government  with 76 seats, with the NDP forming the official opposition with 40 seats.  The rest of the Legislature:  7 Liberal seats and 1 Green Party seat.  Premier-Designate Doug Ford will become Premier and name his cabinet on June 29, 2018.

Ring of Fire

The Conservative platform commits to “using every tool at (their) disposal to cut through the special interest and bureaucratic delays preventing Northern Ontario from benefiting from the Ring of Fire and other important resource projects.” 

Ford also told media during a campaign stop in Timmins, “consultations were important, but the project should not be held up at the expense of perpetuating the red tape that is involved.”  Elsewhere, one Tory candidate also told media, “various tribal councils around the area” need to be partners in the development.”  Ford is also quoted saying, “We’re going to work with the people of the North, we’re going to work with the First Nations, we’re going to respect the treaties that are in place right now. But we’re not going to talk. We’re going to get in there, after the agreements, and get to work.”  A related question is whether whether the incoming government will honour a negotiation-guiding Framework Agreement signed in 2014 with nine Ring of Fire First Nations.

Indigenous leaders, like Chiefs of Ontario Regional Chief Isadore Day, are calling for significant consultation with First Nations on the project:  “First Nations must be fully consulted on any proposed development in the Far North and the Ring of Fire. First Nation consent is required here … Free, prior and informed consent means our Peoples will make the final decision before any bulldozers enter pristine lands.”  Responding to a campaign statement where Ford said “If I have to hop on a bulldozer myself, we’re going to start building roads to the Ring of Fire,” (more via CBC.ca here) Mushkegowuk Council Grand Chief Jonathon Solomon is quoted saying, “You just can’t bulldoze over First Nations … If Doug Ford believes he can do that, he’s going to have a lot of issues he is going to face.”

Resource Revenue Sharing

According to a party statement, the new government “will establish resource revenue sharing from mining, forestry and aggregates to help Northern and Indigenous communities share in the benefits of resource development (and) direct the province to take a portion of provincial revenues collected from aggregate licenses, stumpage fees and the mining tax. This revenue will go to the local, host Northern and Indigenous communities …”  The platform document says this would result in $30 million per year flowing to communities, starting in year two of the mandate.  What isn’t clear yet is:

• exactly what “local,” “host Northern” and “Indigenous” communities mean;
• what formula would be used to figure who gets how much; and
• what a new government might mean for an initial resource revenue sharing agreement signed in May 2018 between Ontario, Grand Council Treaty #3, Mushkegowuk and Wabun Tribal Council.

Former Federal Natural Resources Minister in Cabinet???

Conservative Greg Rickford, a former federal Conservative MP, cabinet minister (Natural Resources and FedNor) and Parliamentary Secretary (INAC) under Stephen Harper, has been elected in the Kenora-Rainy River riding.  With such experience, he could be expected to be included in cabinet.

Caveat on Next Steps

The Tory platform promises a “line-by-line audit of government spending to bring an end to the culture of waste and mismanagement in government,” and to find some $6 billion in savings to be used elsewhere. The platform also calls for “a value-for-money audit of every government program” and “an independent commission of inquiry whose mandate is to get to the bottom of the deficit scandal and to propose timely solutions to solving the deficit problem.”  Any of these reviews could mean a freeze on any current agreements until the reviews are done.

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Filed under: Uncategorized, Doug Ford, Grand Council Treaty #3, Greg Rickford, Isadore Day, Jonathon Solomon, Mushkegowuk, resource revenue sharing, Ring of Fire, Wabun

Ring of Fire News – 25 Oct 11

• RECAP – Federal environmental assessment process under way for Cliffs Natural Resources project.  “The Canadian Environmental Assessment Agency (the Agency) is starting a comprehensive study type of environmental assessment for the proposed Cliffs Chromite Project located in northern Ontario. The Agency invites the public to comment on the project and the conduct of the comprehensive study.  The Agency has prepared the draft Environmental Impact Statement (EIS) Guidelines that identify potential environmental effects to be addressed and information that needs to be included in the proponent’s EIS. Public comments on the draft EIS Guidelines are invited and will be reviewed and considered before the document is finalized and issued to the proponent.  The draft EIS Guidelines and more information on this project are available on the Agency’s website at http://www.ceaa-acee.gc.ca (Registry reference number 11-03-63927). The document is available in paper copy by request as well.  All comments received by November 16, 2011 will be considered.  The Agency is also making available $40,000 under its Participant Funding Program to assist groups and individuals to participate in the federal environmental assessment of this project. Funding applications received by November 16, 2011 will be considered.  This is the first of several public comment periods that will occur during the environmental assessment of the project ….”    CEAA news release – CEAA project page – CEAA list of project documents – Sudbury Star (1) – Sudbury Star (2) – Northern Ontario Business
• RECAP – Matawa Chiefs:  No joint environmental assessment = no Ring of Fire development.  “Matawa Chiefs withdrew their support for development in the Ring of Fire (ROF) (21 Oct 11).  The Chiefs and the 8,000 people they represent are calling on Premier McGuinty and Prime Minister Harper to intervene in the Environmental Assessment (EA) process.  “We will be forced to resort to alternative measures if Canada and Ontario continue to ignore the First Nations that are being impacted by Ring of Fire developments,” said Chief Roger Wesley of Constance Lake First Nation.  Matawa Chiefs are outraged that the Canadian Environmental Assessment Agency (CEAA) is proceeding with a Comprehensive Study EA. The Chiefs and their people have been calling for a Joint Review Panel EA for five months but the government is still not listening. Both the provincial and the federal governments are failing in their constitutional duty to consult and accommodate First Nations. According to the Chiefs, the government is telling them what they plan to do, but it is not consulting or accommodating them about how they want to be involved. The Chiefs maintain that the manner in which the government is proceeding with development in Northern Ontario is going to slowly destroy their traditional way of life, extinguish their treaty rights and destroy their homelands and their children’s future ….”  Matawa news release (PDF) – alternate news release download site (PDF) – Sudbury Star – Thunder Bay Chronicle-Journal (PDF) – Northern Ontario Business – tbnewswatch.com – Wawatay News
• Cliffs on Matawa Chiefs’ announcement:  disappointed, but willing to keep working with First Nations.   “Cliffs Natural Resources says it’s committed to “working hand-in-hand” with nine remote First Nations that could benefit from the company’s proposed chromite mine in the Ring of Fire.  But the company said it’s disappointed over last week’s all-or-nothing demand by Matawa First Nations for a higher level environmental review into the mine proposal.  “It’s unfortunate that the focus is over the panel (review) versus comprehensive approaches,” Cliffs said in a statement.  “The comprehensive review process provides a clear and thorough path, as well as the flexibility to address the specific concerns of impacted communities,” the statement said ….”  Thunder Bay Chronicle-Journal
• Ontario Ring of Fire Co-ordinator on Matawa Chiefs’ announcement:  we’re committed to keeping the dialogue going.  “…. On (20 Oct 11), the Matawa Chiefs met with Christine Kaszycki, an assistant deputy minister with the Ministry of Northern Development and Mines, and the ministry’s Ring of Fire co-ordinator.  Kaszycki said she met with the Matawa chiefs (20 Oct 11), but (the 22 Oct 11) scheduled meeting did not go ahead.  “The purpose … was to engage in a more comprehensive discussion concerning the Environmental Assessment process — share some information and determining what the First Nation concerns are. We did have a discussion on that.  “The consultation has opened the issue … They want to be a more integral part of the process going forward and it’s not just with respect to the environmental assessment, but all areas.”  Kaszycki said there will be more meetings with the chiefs, but none are scheduled at this time.  “We are committed to having ongoing dialogue with the (First Nation) communities,” she said. “I think there is a lot of room to move forward in a very satisfactory way. We are committed to keeping the dialogue going.”  ….”  Sudbury Star
• Environmental groups are also underwhelmed about no joint assessment of Cliffs project.   “…. The Matawa and Mushkegowuk First Nations representing 13 individual communities as well as MiningWatch Canada, Ecojustice, Wildlands League, and the Wildlife Conservation Society have all recommended that the project be evaluated through a joint federal-provincial review panel. Friday’s announcement indicated that this will not be the case and that the project will be reviewed through the less rigorous – and less participatory – comprehensive study process.  Cliffs’ project is the most advanced of several projects being developed in the much-touted “Ring of Fire” ….”
  If approved, Cliffs’ project would open the entire region and establish the infrastructure for future developments. Located on the border between the Hudson Bay Lowlands and the boreal forest of the Canadian Shield, the “Ring of Fire” is ecologically sensitive and a valued part of the traditional territories of the Matawa and Mushkegowuk First Nations who have travelled, hunted, and fished throughout the area for millennia. The First Nations expect the federal and provincial governments to honour their obligations to share both the decision making process and any benefits that may come from development in the area.  The decision to undertake a so-called “comprehensive study” instead of a review panel fell to Environment Minister Peter Kent. The decision threatens already-strained relationships with affected First Nations. Comments Ramsey Hart of MiningWatch, “It is infuriating that our government is not meeting its obligations under the constitution, under our Treaties, and under international norms like the UN Declaration on the Rights of Indigenous Peoples.” Hart also doubts that the decision will actually speed up development ….”  Mining Watch Canada news release – CBC Thunder Bay
• Cabinet Shuffle (1)  New Ministers of Northern Development and Mines (Rick Bartolucci of Sudbury) and Minister of Natural Resources (Michael Gravelle of Thunder Bay).   Government of Ontario news release – Chronicle-Journal – Northern Ontario Business
  
• Cabinet Shuffle (2)  Editorial:  will new Northern Development Minister = preference for Sudbury smelter site?   “…. Sudbury’s Rick Bartolucci, one less thing to look after in Gravelle’s place. It also suggests Premier Dalton McGuinty believes that mining needs undivided attention as exploration increases across the Far North. Bartolucci is also cabinet chair, adding to his stature …. Bartolucci now gets to make his mark directly on a resurgent mining sector. This is a challenge, to say the least. Relations between the mining industry and First Nations near exploration sites are often troubled over consultation and territorial claims on Crown land …. Bartolucci’s appointment also suggests that Cliffs Natural Resources, the biggest player in the huge Ring of Fire minerals deposit, may choose Sudbury for its ferrochrome processing facility. Bartolucci’s hometown is already Cliffs’ “test case” location. With considerable mining infrastructure already in place, the appointment of its MPP as Mines Minister signals that Sudbury may have a lock on the processor.  We still think that Thunder Bay’s status as a seaway port gives it a shipping advantage as Cliffs considers its global marketing strategy for the key ingredient in stainless steel.  Gravelle caught grief for insisting he couldn’t advocate for his riding in the Cliffs matter because he had to respect the entire region in his job as Northern Development Minister. Does Bartolucci think the same way? If so, Thunder Bay and Greenstone might still have a chance at the processor. If Bartolucci goes to bat for Sudbury, the minister will hold all the cards.”  Thunder Bay Chronicle-Journal
• Cabinet Shuffle (3)  If Bartolucci is quoted correctly, he may continue pushing for Sudbury as the smelter site.  “…. (Bartolucci) said he expects MPPs in northwestern ridings “to be advocating and helping their communities to try to secure the processing plant up there. I think that’s fair game.”  He said “the way the (Sudbury) mayor and the community have engaged me in this process, I can still act as the MPP, and will.”  The priority will be to ensure that Cliffs Resources builds its processing plant “right here, in Northern Ontario.” ….”  Sudbury Star
• Meanwhile, Sudbury officials still waiting to hear from road trip to Cleveland to twist arms to get chromite smelter built near Capreol.  “Greater Sudbury officials are still awaiting word on whether an American company will build a smelter in the area to process chromite mined in the Ring of Fire.  However, they’ve already identified a site for the facility.  It’s the site of the old Moose Mountain iron mine, north of Capreol.  The mine shut down in the 1970s.  Ward 7 city councillor Dave Kilgour said that history makes it a good spot for the smelter.  “It’s a brownfield already,” he noted.  “You’re not going into fresh green virgin forest and trying to do something. It’s already been used as a mine site for a considerable length of time, so I think some of the permits… might be easier to get.”  Kilgour said he thinks hydro rates will be the key factor in whether the smelter is built in Sudbury.  The company with all the answers, Cliffs Natural Resources, has not said when it will make a decision ….”  CBC Sudbury
• Thunder Bay also hitting the road to lobby for chromite smelter.  “Mayor Keith Hobbs remains optimistic he can help convince Cliffs Natural Resources Inc. to locate a ferrochrome processing plant in Thunder Bay.  Hobbs will venture next month to company headquarters in Cleveland, along with a Northwestern Ontario contingent, in a last-ditch effort to convince Cliffs officials to choose Thunder Bay over Sudbury.  A working group readying for the delegation is in place, and includes officials from the city, Community Economic Development Corporation, the port authority, Fort William First Nation and Thunder Bay Hydro.  Hobbs said the traveling group will be pared down before the November departure, but will be fully prepared to defend Thunder Bay’s claim to the plant, needed to process the estimated $30-billion Ring of Fire chromite deposit ….”  tbnewswatch.com
• Timmins wants the smelter, too.  “…. Timmins Mayor Tom Laughren said he has also been meeting with officials from Cliffs Natural Resources, the company looking at building a smelting facility for its proposed northwestern Ontario mine.  “Do we think we’re part of the running? Absolutely,” said Laughren. “Would I be as confident as Sudbury, probably not. But again, I think there’s many places in northern Ontario that this could happen in.”  Laughren said what’s most important is that the smelter is built somewhere in northern Ontario.  He said northern leaders should not fight with each other, but rather lobby the province to offer lower hydro rates than Quebec and Manitoba.”  CBC Sudbury
• Timmins Mayor also renews call for lower electricity rates.  “…. Laughren said he is hopeful that even with a Liberal government in Queen’s Park, the minority situation may be able to convince the Liberals to bring in an electrical energy rate that would allow resource-based businesses to thrive …. Laughren said the city and the Timmins Economic Development Corporation (TEDC) have been working together for the last 18 months to do whatever it takes to make Timmins look attractive for the construction of a ferrochrome smelter that could process chromite from the Ring of Fire properties located near Webequie, Ontario …. Laughren said Timmins has been lobbying hard to become to site of such a refinery.  “The ferrochrome processing facility would create approximately 500 construction jobs and 350 permanent jobs,” said Laughren.  The mayor said the Ring of Fire is important not only for Northern Ontario, but for the whole province.  “If we do not get energy costs down to where we can compete with Quebec and Manitoba, this will be an opportunity gone for us,” said Laughren. “The actual ferrochrome facility will not be in Ontario.” ….”  Timmins Times
• Ring of Fire expected to be discussed at national Aboriginal business conference in Ottawa.   “…. On Oct. 24-25, Ottawa will host the Aboriginal Entrepreneurs Conference and Tradeshow. Co-Chaired by federal Aboriginal Affairs Minister John Duncan and yours truly, this unique event will bring together business leaders to discuss the incredible opportunities that exist for Aboriginal entrepreneurs from coast to coast. They will be looking at some of the mega-projects that will drive Canada’s economy for years to come — Plan Nord in Quebec, the Ring of Fire in Ontario and potash mining in Saskatchewan. The conference will also offer insight and expertise on the necessary tools for Aboriginal entrepreneurs to be successful. Renowned leaders such as Kunal Gupta, CEO of Polar Mobile, Dr. Leslie Roberts of the GoForth Institute and Keith Martell, chairman and chief executive of First Nations Bank will address timely issues in business such as social media, innovation and competitiveness ….”  Financial Post
• “Rencore Resources Ltd. announces the completion of the first diamond drilling program on its wholly owned mining claims in the James Bay Lowlands of Northeastern Ontario (Ring of Fire Area) within the Webequie First Nation Traditional Lands.  The Rencore mining claims, subject of this initial drill program, are located between 30 and 60 km northwest of the Webequie First Nation community along the postulated western extension of the main Ring of Fire structure. This structure hosts a number of Chromite Deposits as well as Nickel-Copper-PGE MMS and Copper-Zinc-Lead VMS deposits presently undergoing economic mining studies by their owners …. The second half of the project drilling will commence upon the satisfactory execution of an Exploration Agreement with the Kasabonika Lake First Nation (“KLFN”). Negotiations are at an advanced stage and a positive relationship with the KLFN has been established ….”  Rencore news release

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Summary of more open source information and sources cited over the past six months (1 Sept – 24 Oct 11) also downloadable here (38 page PDF).
All information shared here in accordance with the Fair Dealing provisions (§29) of the Copyright Act.
Ring of Fire News is not responsible for accuracy of original material, and inclusion of material doesn’t mean endorsement.

Filed under: Uncategorized, 11-03-63927, Aboriginal Entrepreneurs Conference and Tradeshow, Canadian Environmental Assessment Agency, Canadian Shield, Capreol, CEAA, Christine Kaszycki, Cliffs Natural Resources, Community Economic Development Corporation, comprehensive study, Constance Lake First Nation, Dalton McGuinty, Dave Kilgour, Ecojustice, EIS, Environmental Impact Statement, Exploration Agreement, Fort William First Nation, John Duncan, joint review panel, Kasabonika Lake, Keith Hobbs, Matawa Chiefs, Matawa First Nations Management, Michael Gravelle, MiningWatch Canada, Moose Mountain, Mushkegowuk, Ontario Ring of Fire Co-ordinator, Participant Funding Program, Peter Kent, Ramsey Hart, Rencore Resources, Rick Bartolucci, Ring of Fire, Ring of fire news, Roger Wesley, Stephen Harper, Thunder Bay, Thunder Bay Hydro, Timmins, Timmins Economic Development Corporation, Tom Laughren, U.N. Declaration on the Rights of Indigenous Peoples, Webequie, Wildlands League, Wildlife Conservation Society

Ring of Fire News, Week ending 5 Jul 11

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.

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• Remember when KWG’s VP Moe Lavigne became a member of the board of Greenstone’s economic development corporation?  Now, KWG Resources & Greenstone are seeking big federal money for a railroad.  “KWG Resources Inc. is pleased to announce that its subsidiary Canada Chrome Corporation, together with Greenstone Economic Development Corporation, have today filed an application with PPP Canada for consideration of funding support of up to $496 million for the construction of a railroad to the Ring of Fire mining discoveries in the James Bay Lowlands of Northern Ontario.  On May 4, 2011 PPP Canada launched Round Three call for proposals of the P3 Canada Fund, encouraging provinces, territories, First Nations and municipalities to consider the P3 model for their public infrastructure needs. The P3 Canada Fund is a merit-based program designed to generate an increase in P3 public infrastructure. Eligible projects can receive up to 25% of the direct cost of construction for a P3 project.  Canada Chrome Corporation has undertaken preliminary engineering and construction cost estimates to build a railroad from a junction with the Trans-Canada line of the Canadian National Railway at Exton, Ontario. The project is presently estimated to cost $1.984 billion.  The co-applicants made the submission for themselves and a joint venture anticipated to be formed with the Municipality of Greenstone and a First Nations Regional Economic Development Corporation to be created by the Matawa and Mushkegowuk First Nations ….”  (Source:  company news release, 24 Jun 11)
• “…. Lakehead University business dean Bahram Dadgostar said there are plenty of countries, including China and India, that are looking to Ontario for its resources, but without the labour pool or proper resources to get it from point A to point B, they’ll go elsewhere.  That goes ditto for companies looking to invest from within the North American market, especially in places like the Ring of Fire and other mining opportunities.  We don’t have a connection to the North, we don’t have those things,” Dadgostar said. “We have to look at what infrastructure is required to attract industry. People around the world are looking for opportunities, but they go where (they can make the most money).”  In other words, companies won’t build railways and roads, he said ….”  (Source:  Tbnewswatch.com, 29 Jun 11)
• Noront Update (1):  “Noront Resources Ltd. is pleased to report final assay results from the 2010 /11 winter exploration program at the Company’s McFaulds Lake Project in the James Bay lowlands, Ontario …. Noront’s President and CEO, Wes Hanson, states: “The exciting discovery of pervasive nickel mineralization and establishing the geometry of the AT-12 ultramafic dike are very significant events. Preliminary estimates suggest that AT-12 averages 0.30 to 0.35% nickel, comparable to many nickel projects currently being evaluated for economic exploitation. The Company believes AT-12 may be amenable to bulk mining methods, which would significantly increase the life of our Eagle’s Nest advanced development project and could potentially increase that projects throughput rate ….”  (Source:  company news release, 28 Jun 11)
• Noront Update (2):  “…. On June 17, 2011, the Company staked six mineral claims comprising 32 units on open ground that lies directly to the north of Noront claims 4226694 and 4226662 (and directly south of Fancamp Exploration Limited’s claims 3012257 and 3012258). These two 16-unit claims were formerly claims 4221148 and 4221149 of MacDonald Mines Exploration Ltd. Another exploration company active in the Ring of Fire has announced that they have staked these claims.  The Company has filed notice with the Mining Recorders Office contesting the validity of the staking by the other company.  Noront also staked another 16-unit mineral claim, further to east. This claim lies directly to the north of Noront’s claim 4226616 and lies on the west shore of McFaulds Lake, and was formerly claim 4212366 of MacDonald Mines Exploration Ltd ….”  (Source:  company news release, 28 Jun 11)
• What Cliffs Natural Resources is telling investors about its Ring of Fire work:  “…. Cliffs’ Chromite project represents the start of Ferroalloys, a new business for Cliffs – Upon completion, Cliffs will be the only North American chromite mining and processing operation …. Ferrochrome Production Facility: Site location studies on-going anticipated need for 1-2 km site (brownfield preferred) – Power cost and grid stability are key drivers for selection – Canada relies on hydroelectric power which offers clean electric energy with long-term price stability – Power constraints elsewhere are driving up cost curve …. Feasibility study will be completed in 2012, leaving the environmental assessment (EA) and permitting process as the determinants of start-up timing – Investigations of environmental baseline conditions underway – Submitted a “Project Description” in May – First step in EA process – Permits needed for construction and operation may be issued by governmental agencies only after the EA is successfully completed …. Cliffs chromite mine will be world class, positioned in a AAA country and with very low mining costs – Cliffs is working to develop an efficient transportation network and build a state-of-the-art furnace operation to supply world markets with both chromite ore and ferrochrome – Ferrochrome processing is critical to access North American and European markets that don’t have processing capacity – Significant value and access to growth markets will be generated from the chromite ore delivered to Asian customers – With a very large potential resource, Cliffs has the ability to expand its position in the market through time ….” (Source:  Cliffs 2011 Analyst and Investor Day Presentation; full report here, , Ring of Fire development section (PDF) here)
• Industry Canada’s latest summary of Ontario’s economy includes this on the Ring of Fire:  “…. Future investment is expected as large chromite deposits are mined in the Ring of Fire area located in the James Bay Lowlands. The Ring of Fire is the only chromite deposit in North America and could be the largest in the world.  Cliffs Natural Resources is currently in the planning process of a project to extract the resource. Capreol, Timmins, Thunder Bay, and Greenstone are potential sites for a smelter related to the chromite project, which would create 500 jobs during construction and 500 jobs during operation ….”  (Source:  Industry Canada’s  Ontario Economic Overview:  June 2011 Update, full report available (PDF) here)
• A Thunder Bay-area peat business is seeking a piece of the Ring of Fire action.  “Peat Resources Limited has renewed its permits on 19,000 hectares of peatlands in the Upsala area of northwestern Ontario and has received a Letter of Authority from the Ontario Ministry of Natural Resources to carry out surveys and resource evaluations of peatlands in the McFaulds Lake (Ring of Fire) region …. The McFaulds Lake peatlands are of special interest because of their proximity to Ring of Fire mineral exploration activity. Proposals for development of these base metal deposits point to the need for over 50 MW of power at the remote mine sites and up to 300 MW at a ferrochrome processing facility at a location to be determined in northern Ontario. Peat Resources Limited is in discussion with the mining companies, provincial government authorities including the Ring of Fire Secretariat and First Nations of the region. The company is urging consideration of the use of peat fuel to supplement the energy needs of these mining and ore processing developments as well as the introduction of peat-fuelled combined-heat-and-power systems in remote (off-grid) First Nations communities ….”  (Source:  company news release, 5 Jul 11)

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Summary of more open source information and sources cited also available here (PDF).

Filed under: Uncategorized, Bahram Dadgostar, Cliffs Natural Resources, Eagle's Nest, Fancamp Exploration, Greenstone, KWG Resources, MacDonald Mines Exploration, Matawa, McFaulds Lake, Moe Lavigne, Mushkegowuk, Noront Resources, P3 Canada Fund, Peat Resources, PPP Canada, Ring of Fire