The month starts here: ring of fire processing will stay home, says Gravelle.

• Author: Gravelle, Michael
• Position: NEWS

Northern Ontario's top cabinet minister was beating back claims in January by a railway union that plans are afoot to ship James Bay chromite ore overseas for processing.

Northern Development, Mines and Forestry Minister Michael Gravelle had to respond to allegations by Teamsters Canada that mine development plans for the Far North included options to transport raw material to China.

"We are committed to seeing a processing facility in Northern Ontario," said Gravelle. "We have made that very clear to the companies and we are working closely with them to see that that happens. I'm absolutely convinced it will happen."

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Last month, Bill Brehl, head of Teamsters Canada Rail Conference Maintenance of Way Employees, said Ottawa and Queen's Park must use their clout to ensure the processing stays home. According to the Teamsters' sources, mining companies are examining processing options to ship much of the ore "specifically (to) China, perhaps some in the U.S. too," by applying for a domestic processing exemption under Ontario's Mining Act.

Cliffs Natural Resources and Noront Resources are the two major mining companies with ambitions on bringing their nickel, chromite and other base metal projects into production as early as 2015.

Under Ontario's Mining Act, all Ontario ores or minerals must be "treated and refined in Canada."

However, an application for an exemption can be made to the Ministry of Northern Development, Mines and Forestry.

Brehl wouldn't identify his sources, but said he heard reliable information from multiple sources within the mining and transportation sectors "who have said it's a possible plan."

The Teamsters want the Ontario government to deny any such exemption.

Brehl wants James Bay ore processed at the shuttered...