A provincially-led development corporation will unlock infrastructure challenges for the Ring of Fire, says the Minister of Northern Development and Mines.
Minister Michael Gravelle (Lib., Thunder Bay-Superior North) announced Ontario plans to lead the creation of a development corporation that’s goal is to unite public and private parties invested in the Ring of Fire, including mining companies, First Nations and both the provincial and federal governments to provide the necessary transportation infrastructure.
"This will be the vehicle for the financing that's needed for the project," said Gravelle, adding decisions need to be made.
"We are very keen to drive this process forward and I am optimistic this development corporation will indeed be the vehicle by which we can make those decisions."
Through this corporation all shareholders would determine what the best transportation route would be and how the companies can potentially work together.
Gravelle said the process has been a bit of a logjam with companies having divergent interests but they're inviting everyone to the table to discuss these issues.
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There is still a lot of work to do for the project to move forward, but Gravelle said this corporation will bring the clarity needed to make the infrastructure decisions.
While no other stakeholders are at the table yet, Gravelle said he's hopeful this action by the province will be welcomed as there's a desire by everyone in Northwestern Ontario to see this project move forward.
Letters were sent inviting the mining companies and First Nations communities to join the corporation and Premier Kathleen Wynne wrote Prime Minister Stephen Harper asking the federal government to also join the development corporation.
Cliffs Natural Resources issued a statement Friday morning saying they are encouraged to see the province taking steps to ensure the development of the Ring of Fire by contributing to the infrastructure planning and financing.
"We have worked hard to build positive relationships with First Nations and mining companies in the region, and welcome the opportunity to work with those partners and governments at both the Federal and Provincial level to advance our project," reads the statement.
"Without infrastructure, none of the projects currently proposed or imagined in the region will become a reality, so it is important that we move swiftly to establish that infrastructure in a way that is sustainable, responsible, and benefits local communities."
KWG Resources president and CEO Frank Smeenk said in a statement said this development corporation model is one they discussed with First Nations leaders and the company looks forward to participating in the initiative.
"Premier Wynne's approach to Prime Minister Harper is also a very productive step forward given the complementary jurisdictional tools available to both our provincial and national governments," he said.
Northwestern Ontario Municipal Association vice-president Iain Angus thinks the development corporation is a good tool.
He said NOMA has been calling for the province to accept its responsibility to plan, own, operate and finance infrastructure for the Ring of Fire for more than a year.
"It really is a public investment with major public return," he said, adding he'd like to see it go further than transportation and include telecommunications and electrical transmission.
