One of the Ring of Fire's biggest players is suspending its project.
Cliffs Natural Resources Inc., in a release issued Wednesday night, said it plans to halt development of its Northern Ontario chromite project by year's end.
"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 Bloor, a senior vice-president with the Cleveland-based company.
"As we've assessed the current challenges in the region and the costs to continue on the current path, we decided to suspend the Chromite Project indefinitely.
"Unfortunately, we will reduce the project team staffing and close our Thunder Bay and Toronto offices, as well as the exploration camp site. We understand this is a hardship for our employees and their families. During this transition, we will be working with this talented team of professionals to explore other opportunities."
Earlier this year the province's lands and mining commissioner quashed Cliffs plans to build a north-south road to the mine site, instead siding with KWG, which staked the corridor and plans to build a rail line instead.
Minister of Northern Development and Mines Michael Gravelle, in a release issued late Wednesday evening, said while he's disappointed with Cliffs' decision, the province is still prepared to go ahead with Ring of Fire infrastructure development.
In the past the company blamed stalled negotiations on the province and First Nations. This past summer they also indefinitely suspended their environmental assessment process.
Gravelle also said the Ring of Fire isn't just about a single company or a single mine.
“Our government is committed to smart, sustainable, and collaborative development in the Ring of Fire and this development is about more than one company," he said. "It is a multi-generational economic opportunity for this province with known mineral potential worth $60 billion and represents one of the largest known deposits in the world.
"The Ring of Fire also presents an unprecedented opportunity for job creation with long-term benefits for communities in the North and the entire province. While I am disappointed with Cliffs’ decision, and certainly appreciate the company’s continued interest in the project, our commitment is clear. The province is prepared to invest in vital infrastructure and create the right climate to support development in the region. We will work with key partners to realize these shared benefits."
Gravelle added a project of this magnitude has a number of stakeholders, including the private sector, First Nations and the federal and provincial governments, and all have a role to play in seeing the multi-billion project move forward.
"Our role is clear. We will work in the best interest of Ontarians and that means we need to get it right," Gravelle said.
The opposition NDP were quick to jump on the Liberals, blaming government mismanagment for threatening to extinguish the Ring of Fire.
"The decision by Cliffs Resources to halt operations in Northern Ontario demonstrates how the provincial government has no plan to develop and grow the mining sector,” said MPP Michael Mantha, the party's Northern Development and Mines critic.
“For years now all players from industry to First Nations to municipalities have spoken out on the need for a strategy on infrastructure, electricity prices, resource sharing and employment opportunities, yet the Liberals have dropped the ball.”
Mantha added the too-little-too-late effort of the governing Liberals could cost the province billions in potential economic development.
Cliffs still plans to work with the Ontario and First Nations communities to explore potential solutions and supports a recent development corporation announced by the province. Technical project work, including a feasibility study, developmet and exploration activites are being stopped, with no restart date planned.
The company did not say how many jobs will be lost by their decision.
