TORONTO – Whether by road or rail, transporting ore from the Ring of Fire mineral zone in northern Ontario won’t be cheap.
The Ontario government supports a road link, but one of those involved in the Ring of Fire, KWG Resources, is still planning a special railway line.
It claims that both the environmental impact and operating costs would be lower than using trucks.
Last week the company released the results of an engineering study by Rail-Veyor Technologies.
It is estimated that an electrified tram system would cost $ 657 (CAD 840 million) to build, designed to move 10 million tons over a distance of 338 kilometers to a processing and / or transshipment facility near Nakina.
KWG owns the Black Horse chromite deposit and Canada Chrome Corporation, which has staked mining claims along an esker – a ridge of stratified sand and gravel – between Aroland and the Ring of Fire.
As the rail project progresses, it will follow this route.
KWG also announced that it is in talks with the newly formed The Gitchiziibii Company Inc., which is helping set up a trust for members of the Matawa and Mushkegowuk First Nations.
“The trust is to be equipped with the economic interests in infrastructure facilities that are required for mining in the Ring of Fire,” said the KWG.
There is no construction schedule yet, but the Gitchiziibii Company, KWG and CCC plan to apply for the proposed ore transport tram system to be designated as a mine under the Ontario Mining Act.
This prepares the IPO of a bond for mortgage lending.
Last week, a bidding war between two Australian companies for the largest shareholder in the Ring of Fire – Noront Resources – ended with a victory for Wyloo Resources.
Noront’s main asset is the Eagle’s Nest nickel, copper and palladium deposit.