Home > News > Minister Gravelle Tries to...

Minister Gravelle Tries to Breathe Life into Ring of Fire

But Offers Mostly Smoke For the Foreseeable Future

By Frank Giorno www.mininglifeonline.net

Feb 14, 2014

From the announcement made today by Michael Gravelle the Minister of Northern Development and Mines in Thunder Bay, Ontario, the Ring of Fire will continue to smoulder over the foreseeable future instead of bursting out into full flame, while a firm has been hired to study all options for infrastructure development, legal framework and governance; and negotiations continue between the Province and the Matawa First Nations Council.

Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte also provides advice on consulting and negotiations.

Gravel announced today that Deloitte will be a neutral third party to assist the provincial government and indeed all partners to the Ring of Fire development collect, assess and evaluate best options for moving forward. The mandate will include identifying the best options for transportation and other infrastructure required before mining can occur.

Deloitte Touche Hired As Neutral Third Party – Will Prepare Research Report

The Minister described Deloitte’s role as  ”a neutral third-party” that will produce a  research report examining existing infrastructure proposals and establish a common technical basis to make inform decisions to maximize the economic and social potential of the Ring of Fire region.   

Gravelle told the reporters gathered at the Valhalla Inn in Thunder Bay, and those watching via the internet. that building infrastructure and working collaboratively with First Nations on economic development is part of the government's economic plan that is creating jobs for today and tomorrow. The comprehensive plan and its six priorities focus on Ontario's greatest strengths -- its people and strategic partnerships.

“It is important that we take the time to do it right,” Gravelle repeated throughout t the 30 minute statement and news scrum.

Negotiations between Matawa First Nation and Province

In addition to the Deloitte Study, Gravelle said that progress was being made between in discussions between the Province’s negotiator, former Supreme Court of Canada Justice Frank Iacobucci and the negotiator for the Matawa Tribal Council Bob Rae, former Ontario Premier and also former interim leader of the federal Liberal party.

Gravelle was very careful to not overstate the amount of progress being made in the talks between Iacobucci and Rae.

“The Chiefs of Matawa First Nations will of course have a major role and it is they who will indicated satisfaction with the agreement we are working on,” Gravelle emphasized.

Ring of Fire Infrastructure Will Be Built Via Strategic Partnerships

But is clear from what Gravelle said that unlike 1905 when the Ontario government built tthe Temiskaming and Northern Ontario Railroad established as a provincial crown corporation in 1902 and bult to facilitate the Cobalt mining boom and later expanded north from Cobalt to Cochrane and Moosonee  to open up the massive gold mining boom in the Kirkland Lake Camp in 1908 and the Timmins-Porcupine Camp in 1909 - this time  it will not go it alone.

“There is shared opportunity and shared interest in this incredible $60 billion deposit and I am confident that infrastructure priorities can come together,” Gravelle said.

But If the transportation infrastructure is to be built it will be done through a partnership arrangement facilitated by a yet to be fully named “Development Corporation.”

“We remain committed to making a significant investment to support infrastructure needs in the region” Gravelle said, “but we need partners to come together so that decisions can be made.”

Gravelle said the important partners are the mining companies, the First Nations, the federal government and the province.

Province Disappointed Federal Budget Failed to Include Spending on Ring of Fire

Ever the diplomat, Gravelle said some friendly words for Prime Minister Stephen Harper, Minister of Natural of Resources Joe Oliver and Greg Rickford, minister of state for science and technology, and Federal Economic Development Initiative for Northern Ontario.

However he could not hide his disappointment that Conservative government in Ottawa still has not named a person to be on the Ring of Fire Development Corporation as proposed by the Liberal government in Queen’s Park.

“I am disappointed that the recent federal budget (released earlier in the week) failed to mention the Ring of Fire,” Gravel said, “And you know that Premier Wynne and Ontario Finance Minister Charles Sousa have also expressed their disappointment.”

But trying to garner optimism, Gravelle added, “ I am confident we will be able to work together to develop the Ring of Fire and we agree that the Ring of Fire is a significant national project that will see prosperity come to our First Nations, Northern Ontario, the Province of Ontario and indeed all of Canada.

“This is a very complex development, with many partners and we need to do it right,” Gravelle repeated. That phrase will be heard often as the minister, the premier and others in the Ontario try to keep the momentum going while having to answer to repeated questions on why it is taking so long.

 

QUICK FACTS Provided By the Ministry of Northern Development and Mines

  • Deloitte LLP is one of Canada’s leading professional firms in consulting and corporate negotiation.
  • The Ring of Fire has a known mineral potential to be worth $60 billion and includes the largest deposit of chromite ever discovered in North America. Chromite is a key ingredient of stainless steel.
  • The Ring of Fire is a multi-generational opportunity that will establish a new mineral resource in a part of the province that has never seen this type of development.
  • The development will help transform the region, create thousands of jobs and enhance the economic prosperity for Ontario.
  • In July 2013, Ontario appointed former Supreme Court of Canada justice Frank Iacobucci as the lead negotiator on behalf of Ontario to participate in discussions with the Matawa-member First Nations communities on proposed resource development in the Ring of Fire.
  • The province announced the creation of a development corporation to bring together private and public partners, including key mining companies, First Nations, and the provincial and federal governments, to lead the strategic infrastructure development for the Ring of Fire region.
  • Regional Framework agreement negotiations led by Frank Iacobucci for Ontario and Bob Rae for the Matawa-member First Nations communities continue to progress and finalization is expected in the near future.
  • Development of the Ring of Fire is subject to all necessary environmental assessment and regulatory processes and approvals and the Crown fulfilling its duty to consult.

LEARN MORE