Cliffs Natural Resources Suspends Work on Ring of Fire until Infrastructure Issues are Resolved
Cliffs Natural Resources decision to suspend work on its Black Thor property in the Ring of Fire is based on a solid business decision practices and the needs of its shareholders said Patricia Persico, Director of Communications for Cliffs.
“As a publicly held company, Cliffs must be responsible to optimize value for the investments and the returns for its shareholders, Persico said.
Cliffs Natural Resources which is at the point where it can develop its chromite mine requires more certainty about the provision of infrastructures for the Ring of Fire such as roads and hydro lines.
“Without roads it is not viable to proceed to develop a mine,” Persico said. “It doesn’t make sense for Cliff to begin mining ore and not have the transportation network to ship the ore to the refinery site and world markets.”
Cliffs will continue to hold onto to its Ring of Fire properties until conditions become more favourable for developing an operating and profitable chromite mine.
“We continue to believe in the value of the mineral deposits and the potential of the Ring of Fire region for Northern Ontario, “said Bill Boor, senior vice president, strategy and business development.
“As we’ve assessed the current challenges in the region and the costs to continue on the current path, we decided to suspend the Chromite Project indefinitely," Boor said.
The decision means Cliffs will be reducing the project team staffing and close its Thunder Bay and Toronto offices as well as the exploration camp site.
“We understand this is a hardship for our employees and their families” Boor added.” During this transition, we will be working with this talented team of professionals to explore other opportunities at Cliffs."
Cliffs said in a news release earlier today that technical project work including feasibility study, development and exploration activities at Black Thor are being halted and there is no restart date planned.
But Cliffs will continue its work with the Government of Ontario, First Nation communities and other interested parties to explore potential solutions related to the critical issue of infrastructure for the Ring of Fire region.
Cliffs remains supportive of the Province of Ontario’s plans to form a Development Corporation structure for the financing and development of infrastructure for the Ring of Fire and intends to participate in future discussions.
In 2012 Cliffs seemed to be ready to take the next major steps towards developing its Black Thor property. It announced its preferred transportation route and its chosen site for a chromite refinery in Capreol, Ontario. Work proceeded on its Environmental Assessment work.
In October, 2012 Cliffs announced it was slowing down its work on the Ring of Fire because of downturn in the price of iron ore and the weak demand for steel. Chromite is a vital mineral in the steel making process.
Earlier this year in June, 2013 Cliffs frustrated by the double layers of Federal and Provincial Environmental Assessment requirements announced it was suspending work on its environmental assessment studies.
Then came September 2013 Ontario Mining Commissioners decision to deny Cliffs a-right-of-way for construction of its preferred roadway a portion of which crossed onto property owned by KWG Resources.
Cliffs’ experienced a strong financial performance over the 3rd quarter of 2013 turning the corner and overcoming first and second quarters performance which were affected by low prices for iron ore and weak demand for steel.
Shareholders and Management of Cliff Resources, however are not ready to plow current profits into their Ring of Fire properties, not until the infrastructure issues are cleared up.
For information on Cliffs Natural Resources’ 3rd Quarter performance please click on the following
http://www.
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