Miners weigh in on billion-dollar Ring of Fire pledge.

• Author: Ross, Ian
• Position: NEWS

The province's billion-dollar promise to jump-start development in the Ring of Fire was not lost on the exploration companies operating in the James Bay region.

In late April, the Wynne government announced it was earmarking $1 billion in its May 1 spring budget to develop transportation infrastructure to reach the Far North mineral exploration camp.

Three Ontario cabinet ministers challenged the federal government and Natural Resources Minster Greg Rick-ford to provide matching dollars on this "next great mining development" for Canada.

"There's an element of politics involved for sure, but ultimately no infrastructure gets built without funding," said Alan Coutts, president and CEO of Noront Resources.

He called the funding a "logical next step" that dovetails with the province's creation of a Ring of Fire development corporation and the signing of a framework agreement with the Matawa chiefs to begin negotiating how development will unfold.

"I'm optimistic. It's sending the right messages and that the provincial government is prepared to ante up to support it."

The $1 billion would be pooled for future infrastructure spending by the proposed development corporation.

What that governing body would look like and how it would be run has been contracted out by the province to Deloitte Canada. The corporation and its as-of-yet unnamed stakeholders will decide the best access route.

The Ring's three major mining Denents--Cliffs Natural Resources, KWG Resources and Noront--have all publicized plans for either road or rail corridors running north and south or east and west.

While some critics may question subsidizing the mining industry, Coutts said Noront is fully prepared to set aside $10 million a year for a possible toll road, be it north-south or Noront's preferred option of an east-west route.

His company has tabled a $400-million road proposal running from northeast from Pickle Lake to its Eagle's Nest nickel deposit, linking four First Nation communities along the way.

"At this point there's only one proposal that's advancing through the permitting stage and that's our mine proposal with its east-west road," said Coutts.

The company is projecting the Eagle's Nest deposit as having an 11- to 20-year mine life. The mine capital construction costs are in the $700-million range.

"Rail is a possibility if there is a large bulk chromite deposit developed in the future," said Coutts, "but in meantime a road is fine to service the nickel deposit...