Monday, July 17, 2017

Sioux to Sault Proposal Has Been Made on Transload Facility


Sioux Lookout and Sault Ste. Marie are supporting initiatives to diversify the north western Ontario and Ring of Fire economy, making a proposal for a trans-load facility that will facilitate raw materials both trucked and transported via rail.

Sault Ste. Marie EDC CEO Tom Dodds says location, history and infrastructure led to his city's organization working with Sioux Lookout, "Our concept is the same and we see the synergies that could be created from an east west route," Dodds said.

Sioux Lookout comes to mind for its infrastructure and existing role as hub for dozens of remote communities, and Dodds regards it as a natural staging point for a major transportation initiative. "It just makes perfect sense from a practical perspective," he said.

The goal is to utilize rail lines to transport goods and materials to Sault Ste. Marie, where discussion of a ferrochrome facility has made people stand up and take note. Dodds says by establishing a trans-load facility in Sioux Lookout it would handle materials shipped from the Ring of Fire. Trucking conduits then meet rail yards for destinations throughout Northern Ontario and further processing.

Dodds notes Sault Ste. Marie is in competition for a ferrochrome plant to process chromium products for international markets. He ways CN Rail officials attended with his team and Sioux Lookout Economic Development's Vicki Blanchard and Mayor Doug Lawrance, and, "We have a shared interest here and we have a good working relationship with (CN Rail)."

The joint action on development uses the developmental advantages for all parties, each community delivering on its strengths to advance and enhance economic stability. Sioux Lookout has been actively pursuing a position as base of operations for northwestern Ontario mining operations.

Extraction projects focusing on nickel deposit and chromite are part of Ontario's immediate economic development strategy, nickel to be processed in Sudbury. NorOnt Resources has existing timetables requiring planning for transportation infrastructure. The resource company is on a schedule for the middle of the next decade after the province decides on a transportation plan to service the Ring of Fire. Premier Wynne has said a $1 billion commitment to Ring of Fire development still exists.

A major aspect of planning for Sault Ste. Marie is the ferrochrome production facility, which creates a product from iron and chrome infused with oxygen using high levels of energy. The finished product is an export to industry to make stainless steel. South Africa and Pakistan currently supplies the ferrochrome.

NorOnt Resources is a Canadian-based mining company with ownership or controlling interest in existing Ring of Fire discoveries. It is NorOnt's interests that beckon the regional proposal called Sioux to Sault. Dodds has worked on an outline of Sault Ste. Marie's assets that include long-term leasing opportunities of land, transportation networks, and energy availability.

Energy, for example, is not expected to be a problem, however, there are technical issues to move the energy into position in the city. "The issues themselves can be overcome but there may be a cost issue involved," Dodds said. "But looking at the positives, that solution may also help other sites for future operations and that can be viewed as an unintended benefit."

In fact a ferrochrome facility will come after extensive environmental proceedings and approvals. If Sault Ste. Marie were to obtain the smelter, the land mass required would be 125 acres with the plant occupying 24 acres. It would cost $1 billion to get it underway to phase 1 and employ 350 people through the launch of the development. The Sioux-to-Sault partnership is a strong card to play toward the acquisition of this large development. Also in the running are Sudbury, Timmins and Thunder Bay.

CANADIAN BUSINESS PULSE
— Resurrected from newsprint. Truth that never died. —

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