KWG still all steam ahead for the RR
https://www.thesudburystar.com/2013/11/22/cliffs-decision-rational-rival Cliffs decision rational: Rival Carol Mulligan By Carol Mulligan, Sudbury Star Friday, November 22, 2013 11:25:05 EST PM Moe Lavigne, vice-president of exploration and development at KWG Resources, inspects a core sample at the Big Daddy chromite property in the Ring of Fire. Photo supplied Moe Lavigne, vice-president of exploration and development at KWG Resources, inspects a core sample at the Big Daddy chromite property in the Ring of Fire. Photo supplied An executive from Cliffs Natural Resources' biggest rival in the Ring of Fire isn't happy the Cleveland-based company has indefinitely suspended development of its chromite project. M.J. (Moe) Lavigne, vice-president of exploration and development for KWG Resources Inc., said companies are often faced with difficult decisions like the one Cliffs made, and it's a rational one. Cliffs was spending $4 million to $5 million a month developing plans to mine its Black Thor deposit and build a ferrochrome processing plant north of Capreol. "It's very hard to justify spending that kind of money when you can't see the light at the end of the tunnel," said Lavigne. Cliffs' decision was partly based on a ruling by the Mining and Lands Commissioner, which denied the company an easement over KWG claims so Cliffs could build a north-south all-weather road. Cliffs is appealing that decision, a very lengthy process. Lavigne said current low chromite prices — about $200 per ton, down from a high of about $400 — also made it "not really economical" to develop the project at this time. Meanwhile, KWG isn't skipping a beat in its plans for the Ring of Fire. "We still have a viable deposit we control and we'd like to develop, and we're still working on orchestrating the establishment of a railroad up there," he said. It has had its first discussions with the newly created development corporation to bring stakeholders in the Ring of Fire together. Cliffs has said it will continue to participate in the development corporation and in discussions with first nations and government. "What they're saying is, 'You guys get yourself organized and we might come back to the party,' " said Lavigne. carol.mulligan@sunmedia.ca