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A vortex of political , financial and unemployment situations has taken over what should be the normal procedure of mining enterprising and the large mining companies are sitting back on their financial resources awaiting for a ride on the will of politicians , seeking exposure for their election strategies , to give a hope to the multitude of unemployed trough participation and active restructuring or construction of infrastructure at moment lacking or terribly inadequate .
Ontario is the place and not the only one .
Cliffs is the other side of the scenario .
Monday November 5, 201
Cliffs Natural Resources is considering delaying the expected start date of construction on its Ring of Fire chromite mine until 2017 or beyond.
Joseph Carrabba, Cliffs CEO and President, told international investors on Oct. 25 that in light of current global iron ore prices the company is reviewing the timeline for its proposed northern Ontario mine.
“This includes delaying the major capital spending outlays and could push the production target date beyond 2017,” Carrabba said. “We still expect to complete the feasibility stage of development and environmental assessment by next year. However, we have decided to shelve our early works plans until feasibility is complete.”
Carrabba said that Cliffs plans to decrease spending on exploration of its chromite site in 2013 as well as cancelling plans for capital spending at the site for the upcoming year.
“Exploration will go down in 2013, just like everything. The first thing that always goes is exploration and R&D from any mining company that goes with it,” Carrabba said.
Carrabba also told investors that the company is exploring the option “to take on a partner for the project.”
While Cliffs announced in May 2012 that it plans to proceed with its $3.3 billion project involving a Ring of Fire chromite mine, a road connecting the mine site to Highway 11 and a processing plant in Sudbury, with an expected construction start date in 2015, the company has lately been hit hard by falling global iron ore prices.
As of Nov. 1 Cliffs stock price was hovering around $37 per share, well below its six-month high of over $60 per share in May 2012.
"Being a commodity company, our share price is definitely closely correlated to the products we sell, which (are) iron ore and coal," Cliffs spokeswoman Pat Persico told Cains Cleveland Business in September. "But we do continue to believe that the fundamentals supporting Cliffs' long-term strategy are intact and anything affecting pricing is not for the long term."
At that time the company announced it was pushing back planning to start construction on the chromite mine from 2015 to 2016.
First Nations in the Ring of Fire region have long argued that development of the Ring of Fire was moving too fast. Both Chief Cornelius Wabasse of Webequie and Eli Moonias of Marten Falls told Wawatay earlier this year that their communities are not ready to fully benefit from the proposed mines, and that a delay would help them get ready.
“It’s moving too quickly,” Wabasse said. “It’s a pressure for us, as we’re not prepared yet. We need time to prepare our people.”
“I’d like to have time before everything starts so that we’re satisfied that we’re taking the right direction, so we’re not jumping to conclusions here,” Moonias said. “With Cliffs’ sschedule, I wont have any time to explore this thing further.”
The ROF will be on the map of production if the private sector is willing to invest , from the politicians sweet talk and vacant promises only . Will Ontarians ever wake up? October 30, 2012 Almost uniquely amongst the provinces, Ontarians don’t place their province first. In most of the other provinces it’s the norm to hear about the province first; the country second. The typical Ontarians puts what happens in Ottawa ahead of what happens at Queens Park. But also, in Ontario, what happens locally in the municipality tends to outweigh what happens at Queens Park. For most of us in this province, “Ontario” comes dead last. The 2011 election turned on that very thing. The NDP ran a campaign filled with style, but short on substance. The PCs ran a campaign about side issues. The Liberals ran on “wait for the Drummond Report” (the Liberal government had commissioned economist Don Drummond to produce a report on how the government could balance its books). The province was already in deep water economically, with the bond ratings agencies circling like sharks in the tank ready to rip Ontario’s credit rating apart, yet the voters apathetically let their parties get away with it all yet again. When McGuinty padlocked the legislature on October 15, grumblings about prorogation started, but they’ve been muted. Although Ontarians have no idea when their MPPs will return to work, the subject has already gone mostly dead. There’s a meme amongst the pundits that’s starting to form that when the next election comes – probably soon after the legislature resumes next year – the three parties this time will have to run on substantive platforms rather than collections of side issues and style points. That will only be true, of course, if the people of the province wake up and demand it. So far, coffee shop chatter would suggest that’s not going to happen. Ontario has an acute financial problem. Even with all the 0 per cent contracts being put into the broader public sector, the provincial deficit still remains deep. The province suffered one debt downgrade earlier this year and remains on credit watch for another. Each one increases the interest the province must pay on its outstanding debt (currently about half as large as the federal government’s total debt and growing at one and a half times Ottawa’s unfunded bills) and takes money from health care and education (along with all the other provincial programs). Ontario has an acute infrastructure problem. The Greater Toronto/Hamilton Region is choking on its own size, and there’s literally no more money available to build out transit or roads. This, in turn, is stifling the provincial economy. Meanwhile there’s no more money for the North either, where the Ring of Fire awaits serious exploitation. Even though Ontario is now a “have not” province and will receive over $3 billion in equalization payments, it still pays more to Ottawa than it gets back. No wonder Ontario’s public services are often amongst the worst in the nation. Despite all the money the McGuinty government poured into health care, for instance, there are still serious shortfalls, queues and investments required. When the legislature resumes, it’s likely the proceedings to declare the energy minister, Chris Bentley, in contempt of Parliament will be put to one side. Not only has McGuinty indicated he’s leaving and not running again, but so too have his finance minister, Dwight Duncan, as well as Bentley. But that doesn’t mean the mismanagement and waste surrounding eHealth Ontario, ORNGE, or the power plant cancellations that were the leading items in committees, Question Period and the news daily all summer and fall have been solved. Neither – if the provincial budget is ever to be brought into some degree of balance – can Ontario continue with a broader public sector as large as the one it has. Does the province need 630 plus agencies, boards, commissions, crown corporations and other bodies all requiring executives and support staff to augment its ministries? The focus up until now has been on a few where things have blown up into scandals: the broader picture remains un-discussed, by voters or parties alike. Other policies of the McGuinty era, like the Green Energy Act, receive bad press – especially in rural ridings – but no real discussion about the problems that act was designed to tackle is taking place, and without that the ability to choose wisely will remain off the table. For too long Ontarians have gone along ignoring Queens Park. But the reality of this century is that almost everything that matters for the way people live is a function of the provincial government. The earthquake, if the province’s citizens decide to really pay attention to Ontario politics, will be profound. Just don’t bet on it happening soon: it will probably need to get worse before that wake-up call is heard.
while its citizens slumber.
TORONTO, ON, Oct. 30,2012/ Troy Media/ – The aftershocks of Premier Dalton McGuinty’s resignation continue to reverberate around the province. But the key question is, will this bestir Ontarians from their slumber?
ByPJ WILSON, The Nugget
Sunday, October 28, 2012 6:35:19 EDT P
The province doesn’t have the money to build a rail link connecting the Ontario Northland line to the Ring of Fire region, says to a spokeswoman for Northern Development and Mines Minister Rick Bartolucci.
Laura Blondeau said Friday neither she nor Bartolucci have seen anything from the General Chairperson’s Association about its proposal for a “new deal” to revitalize the Ontario Northland Transportation Commission which was announced last week.
“We have asked to see the proposal, and they have sent us the press release they issued and communications products, but we don’t really know the plan or how it will be implemented,” Blondeau said.
She said her office is looking to meet with them next week to discuss the proposal that would keep the ONTC alive, but stressed the province does not have the money to extend the track to the Ring of Fire, a remote area without rail lines, all-season roads, electricity or communications networks west of Moosonee.
The proposal was put forward by the GCA, which represents employees of the ONTC, which called for ownership of the Crown corporation to be transferred to a new ports authority which would be operated under the Canada Marine Act.
The new line, which would run from Nakina to Koper Lake, would be used to ship chromite, nickel and other minerals from the Ring of Fire, which is home to a major mineral exploration project.
Blondeau said, though, that it is up to the companies involved in the multi billion-dollar project to determine their transportation needs, and those plans would be subject to provincial approval.
A north-south transportation corridor from Nakina north to the Ring of Fire, she said, is what has been proposed by Cliffs Natural Resources, the major player in the project.
The province, Blondeau said, will evaluate that plan when it is presented.
The main attraction of the Ring of Fire is chromite, a mineral used in the manufacture of stainless steel. Cliffs’ Black Thor project, if developed, is expected to revolutionize the stainless steel industry in North America, which now relies on imports.
The entire Ring of Fire project would make Canada the world’s fourth-largest chromite producer.
Nipissing MP Jay Aspin was one of the proponents on hand last week to give his backing to the plan to revitalize the ONTC.
Thursday, Aspin told the House of Commons the plan will “create jobs, economic growth and long-term prosperity.
“It will improve the transportation infrastructure of Northern Ontario and be funded by the wealth extraction of the vast mineral resources of the Ring of Fire,” Aspin said, calling it a long-term solution for Northern Ontarians for the benefit of Northern Ontarians.
He said he is talking with other Northern Ontario MPs, including members of the NDP, to gather support.
“We can’t afford to be divided on this,” Aspin said.
Brian Stevens, of the GCA, said at the unveiling of the plan the proposal is economically sustainable and will provide a new future for the company.
“Not only will we save transportation services and hundreds of existing jobs in the North, but our plan will also create thousands more jobs by providing access to the Ring of Fire,” he said following the announcement.
The GCA and other proponents met with Northern Ontario mayors to discuss the plan last week.
They have not yet heard back from Bartolucci’s office.
The formation of the James Bay and Lowlands Ports Trustee Corp. was the first step in the process. It will become a port authority if approved by the federal government.
The corporation has already held discussions with First Nations in the James Bay lowlands, with ONTC unions and Canada Chrome Corp., a Ring of Fire claim holder.
The plan also includes rebuilding a railway, formerly owned by Canadian National Railway, from Nakina to Hearst. From there, the existing Ontario Northland railway continues to North Bay.
The new railway would be funded through private investors and bonds.
“Mining companies want to develop up there. This would explode (the North) right open,” Stevens said.
The provincial government announced its plans to divest the ONTC March 23. The Northlander passenger train has already been killed, and communications company Ontera is expected to be sold later this year.
New Deal to revitalize Ontario Northland, connect Ring of Fire receives unanimouous employee support
NORTH BAY, ONTARIO (October 22, 2012) – The General Chairperson’s Association (GCA), representing employees of Ontario Northland Transportation Commission (ONTC), today announced that their members have voiced unanimous support for the proposed New Deal to revitalize ONTC.
About 530 current employees along with a number of retirees attended weekend meetings in North Bay, Timmins, Cochrane and Englehart to learn more about the New Deal from GCA representatives, following its public announcement on Friday.
The GCA-led plan calls for transferring ownership of provincially-held ONTC’s railroad and other assets including Ontera, to a new ports authority to be operated under the Canada Marine Act. ONTC operations will be strengthened, and a new rail line to the Ring of Fire will be developed to ship chromite, nickel and other minerals and finished products to markets around the world.
“We are more energized than ever about the New Deal after receiving such enthusiastic support from our members,” said GCA representative Brian Stevens. “Their voices build on strong support from a growing list of key stakeholders, adding to our confidence in the plan’s success.”
Other stakeholders actively supporting the New Deal include First Nations communities, Nipissing-Timiskaming MP Jay Aspin, Northern Ontario communities, and mining and other business interests.
ONTC employees were told at the weekend meetings that the potential costs to the provincial government in severance and benefits will be a convincing reason for them to join other stakeholders in advancing the New Deal.
“Our proposal offers clear benefits to the Province beyond avoiding costs associated with divesting ONTC,” Stevens remarked. “This is an exciting opportunity for the government to save transportation services and hundreds of existing jobs in the North while also creating thousands more jobs by providing access to the Ring of Fire.”
The GCA has invited Ministers Bartolucci and Chiarelli to discuss the New Deal at their earliest opportunity.
The plan was developed in response to the Ontario government’s March 23, 2012 decision to divest the ONTC, which was followed by the shutdown of ONTC’s Northlander passenger train service on September 28, 2012.
Ontario Northland employs more than 950 workers and supports over 1100 pensioners in Northeastern Ontario, and has an estimated annual economic impact of almost $210 million in the region.
About the General Chairperson’s Association
The General Chairperson’s Association (GCA) represents the interests of the unionized employees and their families at Ontario Northland. We are proud of the work we do and proud of the significant contributions our members make to the value of ONTC and for the overall growth of Northern Ontario. Our members include the Steelworkers Union (Local 1976 Lodges 1826/2008), Teamsters Canada Rail Conference (Division 910), International Brotherhood of Electrical Workers (Local 2061), CAW Canada (Local 103) and Teamsters Canada Rail Conference Maintenance of Way Employees (Division Lodges 2697/003).
For more information, visit www.developingthenorth.com.
Railroad proposed for Ring of Fire
Union wants ports authority to take over Ontario Northland
BY MM&D STAFF ON OCTOBER 19, 2012 4:16PM
Canadian Manufacturing»Distribution and Transportation»
NORTH BAY, Ontario—There may be a new railroad in northern Ontario, if a proposal being put before the federal and provincial governments is adopted.
The plan, which was unveiled by the General Chairperson’s Association, the organization which represents unionized employees at Ontario Northland Transportation Commission (ONTC), proposes that the assets and ownership of ONTC, a provincial agency that operates more than 1,100km of track and provides passenger and freight rail, bus and telecommunications services to northeast Ontario communities like North Bay, Cochrane and Moosonee, be turned over to a newly created ports authority, The James Bay and Lowlands Ports Trustee Corporation, which operates under the Canada Marine Act.
The plan was developed in response to the Ontario government’s March 23, 2012 decision to divest the ONTC, which was followed by the shutdown of ONTC’s Northlander passenger train service on September 28, 2012.
Under the new ownership, ONTC operations would be evaluated for economic sustainability, and where needed, improved and financially strengthened.
In addition, a new Ring of Fire rail line would be designed and built in order to transport the thousands of tonnes per day of chromite, nickel and other minerals being mined in the James Bay Lowlands.
“This is a new deal for Northern Ontario,” said Brian Stevens of the General Chairperson’s Association. “Not only will we save transportation services and hundreds of existing jobs in the North, but our plan will also create thousands more jobs by providing access to the Ring of Fire.”
Key stakeholders including First Nations communities, northern Ontario communities, mining and various business interests, and local politicians, have offered their support for the proposal.
“I am very pleased about the opportunity for First Nations people to get involved in the development of the Ring of Fire,” said Leo Friday, deputy grand chief of the Mushkegowuk Council. “We are ready to work together for the benefit of First Nations people. An important part of this will involve training and education so that Aboriginal workers can gain access to the full range of future employment opportunities at Ring of Fire mines.”
Toronto, Ontario-based mining company, Canada Chrome Corp, which has secured a right-of-way to mine in the area, is also involved in the project.
“Canada Chrome’s work has been instrumental in building a solid base from which our plan can move forward,” said Roy Hains, CEO of the James Bay and Lowlands Ports Trustee Corporation.
“With broad and building support, I am confident that this initiative is well on its way to success. We are particularly excited about providing access to the Ring of Fire with a rail solution that is by far the most economic and environmentally friendly solution. This plan also keeps these important infrastructure assets in public hands for the benefit of all stakeholders,” said Hains.
Currently, the ONTC, which has been in operations since 1902, employs over 950 people and has an estimated annual economic impact of almost $210 million in Northeastern Ontario
Tuesday September 4, 2012
Bartolucci ‘very, very excited’ about the Ring of Fire
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.
Bisson said he asked the question after a number of people connected to the mining industry informed him that talks were happening between Cliffs and Ontario regarding a government exemption to allow the company to export ore.
“If it is not true, all (Bartolucci) is going to do is say its not true,” Bisson said. “Instead he did not answer the question. There’s something going on, that’s for damn sure.”
Under Ontario’s mining act, companies need permission from the provincial minister in order to ship ore out of Canada. The rule is set up to ensure that Canada benefits from secondary industries related to mining.
Bisson said the case of Xtrata’s processing plant in Timmins, which was shut down last year because electricity prices in the province were too high, leaves him to believe that Cliffs will not want to build a processing plant in Ontario as electricity prices are prohibitive.
Cliffs has said it will build the plant in Sudbury, but Bisson worries the company will try to get out of that commitment, with the help of the government.