Cheap power key to Cliffs project, FONOM says

The Federation of Northern Ontario Municipalities (FONOM) has high hopes for the future of mining development in northern Ontario following news that Cliffs Natural Resources has decided to process its chromite from the Ring of Fire at a $1.8-billion smelter near Capreol, according to its president.

However, “all interests need to be taken into account as we move forward,” Al Spacek said in a press release. “We are pleased that a decision has been made concerning one of the jewels of the north. In a deal as big as this, the ‘devil is in the details.’ We want all communities to benefit from this mammoth find – First Nations, adjacent communities and communities right across the north.”

Spacek was commenting following a presentation by Ray Mantha, a senior official at the Ministry of Northern Development and Mines at the FONOM Annual Conference in North Bay.

The $3.3 billion Cliffs Natural Resources will be investing will be used to transport and process the chromite ore, used in the production of steel.

“It will be important to monitor how this project moves forward from an environmental, social, as well as from a purely economic perspective” Spacek said. “The availability of inexpensive hydro electricity will be key to this development.”

The future potential for expansion of value-added resource extraction-related operations will depend on a lower and more stable energy cost for their operations, Spacek said. Reliable, affordable electricity supported by modern infrastructure will allow for expansion in northern Ontario’s resource sector at a time when Ontario needs industry to propel provincial growth and revenues.

“FONOM would be pleased to work with the McGuinty government to have the upgrading of the North-South Energy Transmission Capacity re-introduced as a priority as part of the province's Integrated Power System. This would be a major positive step to unlock a number of important mineral discoveries in the north including the Ring of Fire and would help put Ontario 'Back on Track.’

FONOM’s membership is made up of 110 municipalities, towns and cities in northeastern Ontario. FONOM acts in an advocacy role in relation to political and economic issues of concern in Northern Ontario. Its board of directors consists of 11 municipal leaders from the seven northeastern districts and four cities.

Posted by Arron Pickard