Noront Resources

Lots of Push going on for Cap and Trade by the liberals

http://www.thestar.com/opinion/commentary/2016/03/03/ontarios-cap-and-trade-regime-off-to-a-shaky-start.html

http://www.cbc.ca/news/politics/first-ministers-premiers-trudeau-1.3474380

But what about China's views on Cap and Trade?

http://www.theguardian.com/world/2015/sep/24/china-national-cap-and-trade-deal

"China, the world’s biggest carbon polluter, will launch a national cap-and-trade scheme in 2017, the White House said.."

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And this from India ..

http://www.nature.com/news/india-unveils-climate-change-pledge-ahead-of-global-talks-1.18489

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This event below was on 3 weeks ago. Al Coutts Noront spoke about how cap and trade will affect mining companies. I only found this today :( and would have liked to attend.

I could not find a way to paste it..I'll keep trying...

But please read the below

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http://www.canadianminingreview.com/2011/01/black-swan.html

this portion from this 2011 article is a great read:

"Why are so many low-grade nickel laterite deposits being developed today? Population growth and demand for nickel-containing stainless steel in the world's developing countries is the main answer.

As GDP per capita increases in China (from US$1000 in 2000 to US$7000 in 2009), so too has stainless steel use per capita (1 kg in 2000 to 5 kg per year in 2009).

At this pace, by 2020, it is projected that GDP per capita in China could be close to US$10,000 and stainless steel use could be close to 15 kg per capita, on par with that in Japan, South Korea and Taiwan.

Of the 24-million-tonne global demand for stainless steel in 2009, China accounted for nearly 40%. The growth in demand for stainless steel in China has increased at a rate of 21% per annum in the nine-year period from 2000 to 2009.

The amount of 'new' nickel used in China to make stainless steel has increased at a compound annual growth rate of 30% from 2003 to 2010. Meanwhile, in the rest of the world, primary nickel use has decreased at a rate of 3.4% to 4.3% in the same time period.

The ability of new nickel laterite operations to pay back the billions of dollars that were invested in them is questionable, however. That's because they are exposed to 'black swans' -- highly improbable events that have massive consequenses. The most important of these for laterite mines is a significantly lower nickel price.

Another 'black swan' relates to production costs. When, as is now happening in the U.S., developed nations legislate some form of cabon tax or cap-and-trade system to reduce greenhouse gas emissions, then the mining of nickel laterites could unprofitable very quickly.

For stainless steel producers, one way to reduce carbon dioxide emissions is to use more scrap stainless steel and less virgin or primary, refined nickel. Using primary sources to make one tonne of grade 304 austenitic stainless steel (which contains 10% nickel), 2.30 kg of carbon dioxide equivalent is emitted into the atmosphere. However, if scrap is used, the amount of carbon dioxide equivalent emitted drops 74% to just 0.6 kg.

In the U.S., the percentage of scrap metal in a tonne of stainless steel is about 73% whereas in China, the corresponding percentage is just 27%. That's because there is less scrap available in China (a developing country) than in the U.S.

Unfortunately for the world's climate, the area of the world where the most stainless steel is produced today (China) has the lowest amount of scrap available and is very dependent on coal-fired electricity. That means China needs more primary nickel to produce a tonne of stainless steel and emits more carbon dioxide per tonne of stainless steel it produces as a result compared with producers in the U.S. or Europe.

A third 'black swan' that could impact HPAL operations is the rising cost of fossil fuels.

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We know sulphide discoveries are rare and prior to the ROF sulphide discovery the big discovery was found in Voisey Bay

A great read on sulphide vs Laterite

http://users.monash.edu.au/~gmudd/files/2009-CMS-01-Nickel-Sulf-v-Lat.pdf

The link above compiles and analyses a range of data, showing the higher energy costs of laterite projects, but also the critical importance that energy sources can have on overall environmental costs ...cap and trade folks ...cap and trade.

http://norontresource.wpengine.com/wp-content/uploads/2014/10/pdf/Investors%20Section-%20Presentations/2011%20AGM%20Presentation.pdf

In the Noront presentation link above from 2010 ( slide 21 of 25) it shows you 75% of the world nickel is Laterite and only 25% is Sulphide. It's nice to know Noront is in the 25% catagory.

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In Noront's most recent presention look at page 17

http://norontresources.com/wp-content/uploads/2016/01/Q3-2015-Corporate-Presentation-Website-Jan-41.pdf

page 17 of presentation:

"The future pipeline of nickel supply will be curtailed as majors have little appetite to

take on expensive, technically challenging laterite projects and better capital discipline

will ensure that no sub-optimal projects are started to fill smelter shortfalls"

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When you read all the above....it's clear cap and trade is good stuff for Noront share holders.

IT is also very good stuff for "those" thinking of making stainless steel in Ontario.

We got the chromite, nickel Sulphide and there's lots of nearby iron ore from bloom lake, Wabush, etc...

As was previously written...Ontario is the only location on the planet with ALL ingredients to make Stainless within 500km of eachother.

I can see why lightbulbs are going off and Essar and US Steel are starting to look so attractive.