New book ‘102 Things to Do with a Hole in the Ground‘ spotlights global reclamation projects
Stories of reinvented coal mining regions, regenerated communities and rebuilt ecosystems are told in a new book published this month.
US-based Cliffs Natural Resources (NYSE:CLF) is not giving up on its battle against Canadian junior KWG Resources, as it appealed today to an Ontario’s Mining and Lands Commissioner ruling that didn’t allow the iron ore giant to get road access to its US$3.3-billion chromite project, through KWG’s mining claims.
The Cleveland-based company wanted to build an all-weather road to the touted Ring of Fire, a massive planned chromite mining and smeltering project in Canada’s mineral-rich area of the James Bay Lowlands, Ontario, which could be used to transport ore. But the proposed way would go through lands belonging to KWG, which has plans to build a railway connecting at Exton instead.
In a ruling released Sept. 10, the tribunal ruled that granting an easement to Cliffs would interfere with KWG’s ability to work its claims since “numerous heavy trucks (passing) every day” would cover up future drilling and sampling sites.
“It’s extremely material,” said Smeenk of the commissioner’s office ruling. “There couldn’t be any more material information for the owners of KWG.”
The claims on the northern half cover the only ridge of high ground where a road and rail could be built.
Bill Boor, SVP Global Ferroalloys with Cliffs, told NetNewsLedger he believes there is no “Ring of Fire” without access to the area.
“Without access to the surface lands to develop the needed infrastructure, there is no project. Our proposed development has the scale needed to develop the road access and is therefore a catalyst for other smaller mining opportunities in the Ring of Fire,” Boor was quoted as saying.
Toronto-based KWG has a 30% interest in the Big Daddy chromite deposit and the right to earn 80% of the Black Horse chromite deposit. KWG also owns 100% of Canada Chrome Corporation, which has staked claims and conducted a $15 million surveying and soil testing program for the engineering and construction of a railroad to the disputed area from Exton, also in Ontario.
6 Comments
NiftyWilly
So man up Cliffs and buy the property. You would have to do this in the US, undoubtedly.
Wanderlust
The road is actually beneficial to KWG in that it provides access and drill platforms for their exploration, and anything they find is more attractive since they have a road to bring in needed supplies and develop a mine property. Sounds pretty dodgy on the part of KWG, since there is very little outcrop to sample, and any outcrop encountered on the road route can be sampled prior to covering with a road. A road can also be moved later.
Apple
I wonder why Cliffs does not just buy KWG. KWG is trading at 5 cents or less with a market cap of under $40 million. Probably cheaper than Cliffs lawyers bill.
sailormac
Pure baloney. A mineral lease is just that, a lease, not a deed to the property.
The real issue here is that KWG wants to build a rail line to their smelter, which a road (to the Canada Chrome site) whould supercede
LAMB
Perhaps KWG went this route to get bought out by CLIFFS – puts pressure on CLIFFS to come up with a good offer.
Maybe CLIFFS should consider GIANT AIRSHIPS that can lift hundreds of tons payload to both construct the mine and take the product out??? Just a thought, a little off-the-cuff but do-able. This would leave KWG holding the bag, so to say.
preConfederation
Wait until the Trans-Pacific Partnership Free Trade Agreement goes through and then the USA will claim the mine as their own. There is more than enough investment money in Canada to bring the mine into operation. The possibility of getting Ontario out of debt would be an incentive for any Ontario Institutional Pension Fund to get involved. Ontario could be like Alberta without burying pipelines all across Canada.