Plans To Bring Electricity To Ring of Fire Being Developed

Last week Lawrence Martin, the newly elected Grand Chief of Mushkegowuk Council, revealed that Five Nations Energy Inc. (FNEI) a Mushkegowuk based transmission line company, was planning to bring electricity to Ring of Fire, a potential smelter in the Timmins area and Matawa communities.

The Ring of Fire is a massive deposit of chromite, zinc, nickel, silver, gold and other minerals located in the McFauld's Lake and Webequie area, roughly 600 kilometres North West of Timmins. Chromite is a critical element in manufacturing stainless steel. The Ring of Fire area could become the largest chromite mining site in North America,  in a multi-generational project that could generate over tens of billions of dollars.

The plan announced by Martin calls for the purchase of low-priced electricity from Quebec. A transmission line would be constructed from Quebec to north of Cochrane where it would run north along an existing transmission line corridor operated by Five Nations Energy through Moosonee, to Fort Albany, Kashechewan and Attawapiskat. From Attawapiskat it would veer south into the Ring of Fire. Five Nations Energy currently operates a transmission that brings electricity to Fort Albany, Kashechewan, Attawapiskat and DeDeer’s Victor Mine about 75 km s. of Attawapiskat.

Lawrence said Mushkegowuk Council and Five Nations Energy are examining ways they can partner with Matawa Tribal Council on this plan.  The Matawa Tribal Council consists of The transmission to the Ring of Fire would also see electricity brought to communities in the Matawa Tribal Council region that currently operate diesel driven electricity plants.

The next step would require getting mining companies who are involved with the Ring of Fire, such as Noront Resources or KWG Resources to become customers.

Meanwhile, the Ontario Power Authority, a provincial agency that undertakes planning of Ontario’s electricity system has held meetings on a plan to expand Ontario’s power grid by adding a transmission line from Greenstone, Ontario into the Ring of Fire. The OPA coordinates the planning of Ontario’s energy production and transmission needs. Ontario Power Generation produces most of Ontario’s energy and Hydro One manages the transmission lines that bring the power to local power companies or directly to consumers.

The Ontario government has been calling for the federal government’s participation in the developing the energy and transportation infrastructure required to realize the Ring of Fire’s potential. In August, 2014 the Ministry of Northern Development and Mining announced the creation of The Ring of Fire Development Corporation to oversee the planning and development of infrastructure.

Ontario has also said it will invest $1 Billion and has asked the federal government to match the amount.

Gary Rickford, Canada’s Minister of Natural Resources addressing the Canadian Aboriginal Minerals Association last week and said Canada is committed to seeing the Ring of Fire development

One option for Canada’s participation is through the Canada Builds program introduced by the Harper government in 2011. The $10 Billion plan would provide Ontario with $2.7 B of which some could go to the Ring of Fire. Ontario still has not applied to access the funds, but believes that the fund is not appropriate for use in the Ring of Fire. Ontario wants the Canadian government to match its contribution of $1 billion dollars.

Several exploration companies including Noront Resources, KWG and Bold Ventures are active in the Ring of Fire. According to Ontario’s Ring of Fire Secretariat there are 21 companies hold claims in the area.

Cliff’s Resources, a U.S. based company, which had been in a position to be the first company to develop a mine in the Ring of Fire has announced it is withdrawing its proposal to develop the Black Thor chromite mine and scrapped its plan to build a smelter near Capreol, Ontario

 Over the summer the Ontario government’s lead negotiator former Justice Frank Iacobucci and Bob Rae the lead negotiator for the Wabun Council First Nation’s announced the signing of a framework agreement that would be used to negotiate individual agreements with First Nations in the Ring of Fire Area.