Cliffs Natural Resources Inc. (NYSE: CLF, Stock Forum) is planning to build a $1.85 billion smelter to process chromite sourced from the Ring of Fire region in Northern Ontario’s James Bay Lowlands.
The new smelter will be located near Sudbury, Ontario, Cliffs said in a news release.
Sudbury was selected due to various economic and technical factors that would best support the viability and success of the overall project, including transportation logistics, labor, long mining tradition, community support and access to electrical power, the company said in a release.
In addition, Cleveland-based Cliffs is planning a $1.5 billion chromite mine in the Ring of Fire area.
However, before Cliffs can make a final decision on the project in its entirety, the company must:
- Receive provincial and federal environmental assessment approvals.
- Negotiate mutually acceptable agreements with affected First Nations communities.
- Work with governments to address the lack of infrastructure in the Ring of Fire.
- Complete its commercial and technical feasibility studies.
News that Cliffs is considering moving ahead with a possible $3.3 billion investment, sparked shares of juniors with projects in or near the Ring of Fire region.
Among them, Noront Resources Ltd. (TSX: V.NOT, Stock Forum) rose 12% to 55 cents. Noble Mineral Exploration Inc. (TSX: V.NOB, Stock Forum) rose 10% to 11 cents. MacDonald Mines Exploration Ltd. (TSX: V.BMK, Stock Forum) eased 4% to 12.5 cents.
Shares of Cliffs rose 0.41% to $56.99.