Development Corporation the Key to Constructing Road Infrastructure for Ring of Fire, Minister Gravelle Says

A Development Corporation the Key to Constructing Road Infrastructure for Ring of Fire, Minister Gravelle Says

For a mining area to be successful it must have a transportation network to haul the ores from the mining site to a milling and refinery site and then on to markets. Up until now the three leading companies in developing mineral deposits each had their own plans for building a permanent road or rail link.

The inability of Cliff Resources to get permits from the Mining and Lands Commissioner for an easement across one its competitors land shows that mining companies are unwilling to work together on their own to build a road that mutually beneficial to all.

One hundred years ago when mining opened up in Ontario’s northeast, it was the 100 percent provincial government funded Highway 11 expansion and the creation of the The Timmiskaming and Northern Railway that made the explosive growth in mining possible.

Today a government build transportation system is not feasible. That is why the next best option is to develop a Ring of Fire Transportation Development Corporation on which representatives of the Federal, Provincial governments and the leading mining companies can work together to finance the best truck and rail system to successfully unleash the vast mineral wealth contained in the area

Michael Gravelle the Minister of Northern Development and Mining has said the discussion have begun with potential partners to create a Transportation Development Corporation.

He said feedback to a development corporation for has been positive, but  critics say they need more details on how the corporation will be run and what plans it has for developing a transportation system for shipping chromite minerals and other minerals mined in the Ring of Fire.

Gravelle said the development corporation will create a business model to bring together mining companies, first nations, and the federal and provincial government to "drive strategic infrastructure development forward in the Ring of Fire."

The corporation will act as a vehicle for investment, leveraging private and public sector money. It would also manage the development, construction, financing and maintenance of strategic infrastructure, he said.

Even though one of the largest players, Cliffs Natural Resources, has indefinitely pulled out of the Ring of Fire, there is still plenty of activity in the area, said the minister.

Currently, there are 27 companies and individuals holding approximately 12,850 active mining claims in the region Gravelle said.

“We remain committed to working with all our key partners, Minister Gravelle said. This includes Cliffs”

In an interview with Mining Life Online, Patricia Persico, Cliffs Resources, Director of Communications said that her company is still very much interested in developing its chromite deposits, though they have temporarily stopped allocating capital for the time being. Persico made it very clear that they will continue to work with the province and the development corporation to build the needed infrastructures to make mining the Ring of Fire possible.