Subscribe free to our newsletters via your
. Space Industry and Business News .

$3.3 billion Canadian mining project scrapped
by Staff Writers
Alberta, Ontario (UPI) Nov 22, 2013

Cliffs Natural Resources Inc. says it has suspended plans for a $3.3 billion chromite mining project in Canada.

The company, based in Cleveland, mines iron ore and metallurgical coal in North America and Australia. It said in a statement this week it would not allocate more capital to the chromite project in northern Ontario's mineral-rich Ring of Fire region "given the uncertain timeline and risks associated with the development of necessary infrastructure to bring this project online."

Chromite is used to make stainless steel.

Cliff's decision comes amid volatile prices for many commodities and decreased demand from China.

"We continue to believe in the value of the mineral deposits and the potential of the Ring of Fire region for Northern Ontario,"said Bill Boor, Cliffs senior vice president, strategy and business development.

The remote area is believed to contain $60 billion worth of minerals.

Ontario acknowledged the limitations due to lack of infrastructure.

"We recognize that government is going to have to partner with the enterprises that are interested in developing the Ring of Fire, and we understand there will have to be collaboration on infrastructure development," Ontario Premier Kathleen Wynne said Thursday, The Globe and Mail reports.

"We're absolutely clear on that," Wynne said. "It's about a huge opportunity."

Wynne's government had announced two weeks ago a new development corporation would build $2.25 billion worth of infrastructure in the region.

The announcement was made before specific plans were formulated and the government didn't commit the money to fully fund it, says The Globe and Mail reported.

"Without land surface rights, without infrastructure certainty, without the (environmental assessment) process terms of reference being approved ... we can't continue to spend at the levels we're been spending," Pat Persico, a spokeswoman for Cliffs, told the newspaper.

H. Fraser Phillips at RBC Capital Markets, the corporate and investment banking arm of the Royal Bank of Canada, said Cliffs' project would have taken years to develop "if it could ultimately be developed at all," the Financial Post reports.

Based on estimates from Cliffs' July 2012 investor day, the chromite project required ferrochrome prices of $1.40 per pound to produce an internal rate of return between 14 percent and 17 percent.

With prices currently around $1, Phillips said the project's economics were "questionable at best."

As a result of its decision to scrap the chromite project, Cliffs can now focus on allocating its capital and resources to its core iron ore assets such as the Bloom Lake mine in Quebec, he added.


Related Links
Space Technology News - Applications and Research

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

SlipChip Counts Molecules with Chemistry and a Cell Phone
Pasadena CA (SPX) Nov 25, 2013
In developing nations, rural areas, and even one's own home, limited access to expensive equipment and trained medical professionals can impede the diagnosis and treatment of disease. Many qualitative tests that provide a simple "yes" or "no" answer (like an at-home pregnancy test) have been optimized for use in these resource-limited settings. But few quantitative tests-those able to measure th ... read more

$3.3 billion Canadian mining project scrapped

Raytheon awarded US Navy contract for radar production

UNH scientists document, quantify deep-space radiation hazards

Bayanat Airports And Lockheed To Deploy Windtracer Lidar In Middle East

Manpack Radios in Arctic Connect with MUOS Satellites Orbiting Equator

Self-correcting crystal may unleash the next generation of advanced communications

Northrop Grumman Receives Contract to Sustain Joint STARS Fleet

Raytheon expands international footprint of electronic warfare capability

Arianespace orders ten new Vega launchers from ELV

NASA Commercial Crew Partner SpaceX Achieves Milestone in Safety Review

ASTRA 5B lands in French Guiana for its upcoming Ariane 5 flight

Kazakhstan say Baikonur launch site may be open to Western countries

Russia to enforce GLONASS Over GPS

How pigeons may smell their way home

UK conservationists using location-based system ManagePlaces

A Better Way to Track Your Every Move

Poly Technologies takes delivery of 4 Mi-171 helicopters

British launch big drive in Emirates to see Typhoon jets

Boeing Selects Business Jet for Maritime Surveillance Program

NASA, Boeing Finish Tests of 757 Vertical Tail With Advanced Technology

Nature: Single-atom Bit Forms Smallest Memory in the World

Virtual Toothpick Helps Technologist 'Bake' the Perfect Thin-Film Confection

New way to dissolve semiconductors holds promise for electronics industry

Accidental discovery dramatically improves electrical conductivity

NASA Helps Melt Secrets of Great Lakes Ice

Scientists nearing forecasts of long-lived wildfires

NASA Damage Map Helps in Typhoon Disaster Response

UMD, Google and gov. create first detailed map of global forest change

Madrid street-sweepers call off strike: union

Everyday chemical exposure linked to preterm births

Albania refuses to host Syria arsenal destruction

Protests grow in Albania against Syria weapons destruction

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement