Rail cheaper than road for Ring of Fire: study
Shawn Bell - Wawatay NewsA new study of transportation options for the Ring of Fire has determined that building a railway would be cheaper option over the long term than shipping ore on an all-weather road.
KWG Resources, a mining company that has long promoted the railway option for the region, commissioned the study.
According to the study, the cost of building a rail line over the 330 kilometers between the Ring of Fire and Nakina is nearly $1.5 billion, while the cost of building a highway comes to just over $1 billion.
However the operating costs of a railway line were significantly lower than those of highway shipping, due to the high cost of equipment, maintenance and labour associated with shipping ore by road.
The study estimated that the extra cost of building a railway line would be covered by the savings in operating costs in six years, at the base case for mining production.
“This analysis brings out the features that the rail option is more robust, low maintenance, cost-reflective and demand-responsive to operational and market conditions than the road option,” the study stated.
It also noted that the cost of the rail option goes down compared to the road as more ore is mined in the region.
“The lower medium and long term cost for rail provides an opportunity to develop a more stable and consistent transportation corridor in the region, which can respond well to development,” it reads.
The study also noted that due to a scarcity of gravel in the region, building both a railway and a road may not be possible. Whichever option gets built first may limit the cost-effectiveness of the second option, the report stated.
Cliffs Resources has proposed building an all-weather road from the Ring of Fire to Nakina. A spokesman for Ontario’s Ministry of Northern Development and Mines (MNDM) told Wawatay that the province is considering funding a portion of the road and recouping the money through tolls or fee for use plans. The MNDM spokesperson also said the road would be for industrial users only, and not connect to local communities.
Cliffs VP Richard Fink acknowledged that a railway would be the preferred option, but as he told Canadian Mining Journal, the initial costs of building it are prohibitive.
“Everybody would love a railway,” he said on Feb. 1, 2012. “The concept is wonderful, but we don’t see anybody who would finance it.”
The new Ontario cabinet has also announced it will hold a cabinet meeting in Sault Ste. Marie on Mar. 1 focused on addressing northern Ontario’s “complex transportation needs, including vital access to the Ring of Fire.”
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Perhaps all of the processing
Perhaps all of the processing should be done in the mine area. The FN could actually build, own and operate local hydro-electric dams to supply power with any excess possibly sold to Ontario Hydro. If Ontario Hydro does not agree, sell it to Quebec. The milling and refining could be done on site and provide an additional 500+ jobs to the area. Perhaps shipping the raw material to Sudbury for processing was only a political manoeuver so bad Bart(olucci) could brag of the jobs he stole from the FN's and gave to Sudbury. Shipping out only the finished product would greatly reduce the transportation requirements. If the deposit proves to be as big as Sudbury, which many say it is, this is a very serious consideration for the local First Nations and they should be allowed to retain as much of the benefit as they desire. The next 8 to 10 year lead up to development would allow for training of FN's and should give time for development of hydro dams. If the government screws up the mine, the FN's could still sell the power which would provide a steady revenue for them.
Why do you think that only FN
Why do you think that only FN people should get any jobs or contracts? Since when is it ok for 1 race to assume that all opportunities are only for them?
It is not stated that only
It is not stated that only the FN's should get jobs or contracts. The jobs should be kept in the ROF area to allow for full benefit to the region impacted by the mining. Anyone would still be free to apply. My comment would be the same if there was a signifigant non-FN population. Given that there will likely be a shortage of local workers, certainly the FN's would allow us jobs and opportunity equal to what we have offered them. Would Sudbury allow a company to come in and break rock then ship all other jobs to a distant location?
You probably know the answer to your second question. History is awash with one race hoarding all opportunities to the detriment of another. We can only strive to break away from this type of relationship.
In order to make the project
In order to make the project profitable milling on site makes more sense. The jobs should be offered to first nations and all canadians on a 50- 50 basis. Whether rail or road the first nations should contribute to this in the form of taxes. Why should all Ontario tax payers biuld infrastructure to benefit mining companies and the first nations. If they get jobs on the reserve they pay no income tax. How does this help anyone in Canada.
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