Ontario’s new development corporation will push the Ring of Fire project forward, promises the mines minister.
This promise from Minister Michael Gravelle comes despite Cliffs Natural Resources’ recent announcement to suspend its Ring of Fire activities. Gravelle admits that the news is disappointing, but adds that the province is ready to respond.
“The fact is this only convinces us we need to redouble our efforts in terms of infrastructure needs related to the transportation corridor in the Ring of Fire,” the minister told local media Friday, two days after Cliffs announced the indefinite suspension of their Ring of Fire operations.
“That speaks to the establishment of a development corporation. We have received a very positive response to the development corporation, and I think that will be the key to moving the project forward.”
Gravelle took heat at Queen’s Park Thursday from opposition parties seeking answers on how one of the major companies involved decided to, at least temporarily, turn its back on the celebrated mineral deposit.
Cliffs will close their offices in Thunder Bay and Toronto, and will lay off their exploration site staff by the end of the year.
Earlier this year, the company’s plans to construct a north-south road to the mining site was quashed by the province’s mining commissioner, who ruled in favour of rival company KWG and their plans to build a rail line.
The company had also suspended their environmental assessment during the summer.
When pressed, Gravelle would not put a timeline on when it could be expected that there would be production from the Ring of Fire with minerals being removed from the ground.
Instead, he pointed to measures taken by the government to prepare for the project, and emphasized a need to make sure the complex situation is prepared for correctly..
“It’s very important we do get it right. We have taken very specific action to move the project forward, which includes the consultations with First Nations, the significant dollars we’ve put into skilled trades upgrading, it includes the capacity building dollars that are a very important part of preparing for such a big project.”
Earlier this month, Gravelle announced the province’s intention to create a development corporation that would bring together private and public parties involved in the project, such as First Nations, mining companies and both levels of government.
He plans on meeting with the federal government, specifically MP Greg Rickford, who has the Federal Economic Development Initiative for Northern Ontario within his Cabinet portfolio.
Despite the hurdles, Gravelle said he is “as optimistic as ever” that the Ring of Fire will remain an economic driver for the region and province. He added there is not a shortage of companies interested in pursuing the development.
“We know there is $60 billion of mineral potential in the ground, and we know there are many companies interested in moving forward with this,” Gravelle said.
“We are not stepping back from the project. The province remains as committed to this as ever, and we are prepared to make very significant investments in the infrastructure related to this project.”
Gravelle also said he plans to sit down with Cliffs and Bill Boor, the company’s senior vice-president of global ferroalloys. He stressed a need to listen to Cliffs to understand the company’s position.
