THUNDER BAY -- The Ring of Fire has "zero hope" of being developed in the coming decades according to Cliffs new CEO.
During an interview with the Financial Post Tuesday Lourenco Goncalves said there's no solution in sight for the proposed development and that he doesn't expect to see the region developed within his lifetime.
The company, which has two massive chromite deposits in the region, suspended its operations last year. KWG Resources wants to buy those deposits. Goncalves told the Post junior mining companies like KWG don't have the money.
But KWG's Moe Lavigne is taking the comments in stride.
"That's the kind of language you would expect from a CEO who's trying to support his position to divest themselves from the Ring of Fire assets," he said.
While Cliffs is a major player elsewhere, Lavigne said it has the same problem all juniors in the area have to attract investors. He's confident KWG will find the backing to buy those deposits in the next couple of months. He also doesn't think Goncalves' comments will hurt potential investment.
"I don't think it will distract people who truly understand the value of the chromite deposits in the Ring of Fire," he said.
The area is remote and lacks the infrastructure necessary to develop it. Goncalves said that should have been addressed a long time ago. Speaking at Nishnawbe Aski Development Fund's Mining Readiness Conference Wednesday, Lavigne said business and First Nations need to come together to figure out the region's needs.
"I think the province need to be shown direction," he said.
Northern Development and Mines Minister Michael Gravelle said while Goncalves obviously has the righ to his opinion, he doesn't share Goncalves' views on the project.
"I just don't think the reality bears that out," he said.
While he couldn't go into specifics, Gravelle said there are a number of other companies looking to get in on the Ring of Fire and the province is involved in those discussions.
