THUNDER BAY – MINING – Marten Falls First Nation has undertaken with KWG Resources Inc. to work towards establishing the principal terms of an equal partnership for the mining of chromite in the Ring of Fire.
The parties envisage large-volume underground mining operations for the delivery of chromite raw materials by railroad, for further processing. The parties will travel to China in mid-May to establish interest in long-term offtake and financing arrangements there. They will also meet with China Railway First Survey & Design Institute Group (‘FSDI’) to discuss details of the feasibility study prepared for KWG last year by FSDI. The proposed railroad traverses the traditional territories of the Marten Falls, Webequie and Aroland First Nations.
The capital cost of creating the mining operation and its railroad is estimated to be $4 billion. The parties have requested that Ontario’s Ring of Fire Infrastructure Development Corporation indicate its willingness to provide a $1 billion guarantee as consideration for project financing terms from Chinese lenders.
The partnership is envisaged to include the Aroland and Webequie First Nations as well as the more remote members of the Matawa Council of First Nations. An offer of partnership will also be extended to Ring of Fire mineral claim holders Noront Resources Ltd., Fancamp Exploration Ltd., Bold Ventures Inc. and Probe Metals Inc.