TSX-V-listed Noront Resources has moved to the final phase of the site selection process for its proposed ferrochrome production facility, with only two cities – Timmins and Sault Ste Marie – still in the running to host the 100 MW to 130 MW scalable furnace.
Noront has dropped Thunder Bay and Sudbuy as potential locations for the smelter, the Toronto-based company, which is the largest landholder in the emerging Ring of Fire mining camp, said on Friday.
Timmins, Sault Ste Marie, Thunder Bay and Sudbury participated in a bidding process, which Noront president and CEO Alan Coutts said delivered “oustanding” submissions.
“They each provided a compelling case that illustrated the merits of their location as a host for the ferrochrome production facility,” he commented in a statement.
While the Sudbury proposal had the lowest operating cost, it included significant capital costs such as site preparation earthworks and re-establishment of critical infrastructure. It also faced strong opposition from the local community.
Thunder Bay, on the other hand, had strong community support, including that of Fort William First Nation; however, the presence of a water body transecting the property reduced the environmental acceptability of the site and costly power infrastructure needs created a further issue.
The process has now moved to the final phase, which includes substantial negotiation of commercial use terms with the owners of the two favoured sites. Noront expects this stage of definition to be concluded in the fourth quarter of 2018.
Noront is focused on the development of its high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit and the chromite deposits including Blackbird, Black Thor, and Big Daddy, all of which are located in the James Bay Lowlands of Ontario.