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KWG Appeals Divisional Court Decision Letting Province Intervene

In Cliffs' Appeal of Mining Land Commissioner to Access KWG Lands For Road

May 16, 2014

Counsel for KWG Resources Inc. subsidiary Canada Chrome Corporation ("CCC") has served notice that it will appeal  the order of Honourable Justice Lederer of the Ontario Divisional Court dated April 28, 2014 that permitted the intervention of the Ontario government.

The April 28th decision by Justice Lederer, a justice with the Divisional Courts permitted the provincial Minister of the Attorney General to intervene on behalf of the Minister of Northern Development and Mines (MNDM) for 30 minutes in Cliffs Natural Resources’ appeal of the Ontario Mining and Lands Commissioner decision last September, 2013.

The Ministry of Northern Development and Mines though it sought to intervene before the courts said it would not take sides between the two competing parties and instead would there only to answer questions of law.

Cliffs had applied to the Mining and Lands Commissioner in order to gain access to lands for construction of an overland road to transport chromite from its proposed mining site. The only practical route traversed lands with mining claims held by Canada Chrome, a KWG subsidiary.

KWG prefers a rail route that will ship mined chromite from the Ring of Fire either north to the port of Moosonee or linking to other rail lines for shipping to its overseas clients.

Cliffs had proposed building an all-weather road connecting their chromite deposit in the Ring of Fire to their proposed beneficiation and refinery site in Capreol, Ontario near Sudbury.

 The Mining and Land Commissioner denied Cliffs’ request to access land staked by KWG and its subsidiary Canada Chrome Corporation. Shortly afterward, Cliffs announced it had suspended its work in the Ring of Fire until the uncertainties over the construction of a transportation route and other infrastructure issues were resolved.

Despite Cliffs suspending its work in the Ring of Fire, it decided to pursue an appeal of the Mining and Lands Commission’s decision.

Since Cliff’s announcement, the Ontario government has announced the formation of a development corporation as the vehicle for bringing together all partners to help fund the infrastructure required to develop the Ring of Fire. While there has been strong support from the mining companies for the development corporation, the federal government has still to take up the province’s offer to participate.

A hearing of  Cliffs’ appeal to the Mining and Lands Commissioner’s decision to deny access to KWG and Canada Chrome Corporation lands will be held in June before Justice Lederer of the Divisional Court of Ontario.