Ring of Fire News – April 3, 2014
?“Ring of Fire-focused project proponent KWG Resources on Wednesday said that more laboratory tests on reducing chromite ore from its Black Horse deposit using natural gas had been completed and provided “substantial encouragement” that the newly developed method might be used to convert the Black Horse chromite into a metallised chrome and iron alloy. During these tests by Glencore affiliate XPS Consulting & Testwork Services, the chromite, blended with suitable solid carbon as reductant, was reduced in the solid state at atmospheric pressure, using reformed natural gas, to produce the alloy. Reactions started at 900 °C when a suitable accelerant was used to enhance the reactions – a substantially lower temperature than is usual for chromite ores. The time required for the reductants to convert the oxide ore to alloy was also found to be substantially less than one hour – much faster than what established direct reduction methods have produced. Based on these tests only, preliminary estimates provided in a report indicated that “very substantial” energy savings could be achieved ….” – Company news release
?One analyst’s take “The Ontario government and Matawa First Nations have reached a negotiation framework agreement to discuss how to develop the world-class Ring of Fire mineral belt in Northern Ontario where Cliffs Natural Resources owns huge deposits of chromite. The company has been unable to develop its assets here owing to lack of agreement among stakeholders on key issues related to environment, revenue sharing, community infrastructure, etc. Also, the region is totally isolated from the rest of the country and needs massive investment to develop connecting transportation infrastructure. This itself has been the subject of an acrimonious court battle between Cliffs and KWG Resources, which controls the land where the key transportation route lies. Therefore, while an agreement on a common framework is definitely a good first step, it is still going to take a lot of time to negotiate and agree to specific terms and conditions. This means that Cliffs’ investors will do good not to get their hopes up for now. The Black Thor project, right now in the suspended state, is unlikely to be revived any time soon ….”
?A VERY optimistic assessment of a recent agreement “Mutual co-operation, solid funding will open up resource-rich region within weeks …. In an unprecedented display of support for resource development, a committee representing all stakeholders in Ontario’s Ring of Fire today announced an accord to open the region to mining immediately. “All the agreements are in place, along with investment and funding, permitting and legislation, as well as a solid plan to build infrastructure,” said Michael Gravelle, Ontario’s minister of Northern Development and Mines. “Work has started already.” Proposals to develop the remote region have proved vexatious to approximately 15 federal and provincial ministries, several aboriginal communities and over 20 mining and exploration companies. Some observers wondered whether there could ever be any consensus if industry representatives themselves couldn’t come to terms. Amazingly, they did. And they brought along each and every other stakeholder. How were such seemingly insurmountable obstacles overcome with such astonishing speed? “Nothing’s insurmountable when people work together,” Gravelle replied. “All we did was utilize the best resource known to this planet—mutual goodwill.” ….”
?“Engaging with the growing aboriginal talent pool is increasingly critical for those operating in Canada, Noront Resources VP for human resources Leanne Hall told members of the Canadian Institute of Mining’s Management and Economics Society on March 26. “There are around 1 200 aboriginal communities in Canada currently located within 200 km of mineral properties. It’s estimated 60% of mining activity in Canada happens on aboriginal lands,” she said. “Aboriginal Canadians are the most accessible source of talent closest to our projects, so it makes sense to look to them for developing a workforce.” Noront is developing its flagship Eagle’s Nest project in the Ring of Fire region, in northern Ontario, which it hopes to bring into commercial production in 2017. The project has just over 11.13-million tonnes proven and probable reserves grading 1.68% nickel, 0.87% copper, 0.89 g/t platinum and 3.09 g/t palladium. Aboriginal people also represent one of the fastest-growing demographics in Canada. “Currently there are 652 000 aboriginal people in Canada of working age. By 2020, another 400 000 aboriginal youth will come on stream. So there will be a million aboriginal people available for work,” she said ….”
?Think tank: time to provide First Nations with “private ownenrship of mineral rights”? “Canada could improve its attractiveness for mining investment by allowing private ownership of mineral rights, particularly if mineral rights were given to First Nations, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. “Mining development in Canada is fraught with uncertainty related to First Nations land claims and requirements that miners consult with First Nations. The result is often endless rounds of negotiations with no end in sight,” said Kenneth Green, Fraser Institute senior director of energy and natural resources. “Providing First Nations with private ownership of mineral rights will create a framework grounded in property rights and common law that would bring clarity to negotiations between First Nations and miners over project development.” ….” – Study: “Divergent Mineral Rights Regimes: A Natural Experiment in Canada and the United States Yields Lessons”
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