THUNDER BAY – A mining expert believes the city would be poised to capitalize on the Ring of Fire if electricity prices weren’t so high.
John Mason, the project manager of mining services with the Thunder Bay Community Economic Development Commission, said there are some reasons to believe the city could one day be the site of stainless steel production.
The Ring of Fire is home to rich chromite deposits, which when produced to chromium and ferrochromium is used to manufacture steel.
Mason cited the city’s location at the head of the Great Lakes and relative proximity to the lucrative mining development as two potential advantages.
“It’s certainly doable in terms if you look at the seaway system to move product,” he said. “The talent is there, I think our infrastructure is there and the financing could be there there but electricity pricing and availability is one of the biggest concerns.”
High electricity prices have negatively impacted steel production in other parts of the province, as U.S. Steel closed their Hamilton operations in 2013 after more than a century.
He said KWG Resources, a stakeholder in the Ring of Fire, is exploring technology that would use natural gas rather than electricity to produce steel.
The process requires so much heat that it’s not a simple switch.
But that doesn’t mean it’s impossible.
“We’re a pretty novel, innovative province and country. Northern Ontario demonstrates that every day. Why not, there have to be solutions,” Mason said.
He added if steel production ever comes to fruition there could be value added opportunities as well.
