TORONTO (miningweekly.com) – US iron-ore miner Cliffs Natural Resources has appealed the Ontario Mining and Lands Commission’s (MLC's) dismissal of its easement application across mining claims held by exploration junior KWG Resources in the Ring of Fire.
Cliffs, which owns the Black Thor deposit, reported on Wednesday that counsel for KWG Resources had been served with a notice of appeal.
A Cliffs spokesperson, Jennifer Mihalcin, told Mining Weekly Online the MLC's decision was "dissappointing" and one that threatened the development of the Ring of Fire district.
"After careful review of the MLC decision, Cliffs has chosen to appeal the decision and will seek to have it overturned.
"The appeal raises important issues of law under the Mining Act and the interpretation of the law may have significant negative ramifications for the development of mining claims," she said in an emailed statement.
Mihalcin declined further details, saying the matter was now before the court.
The US group wants to build a road towards Capreol through a region claimed by KWG, which is proposing to build a railway connecting at Exton instead. The claims on the northern half cover the only ridge of high ground where road and rail is constructible.
Cliffs had sought an order to dispense with KWG’s consent for granting an easement to Cliffs over KWG’s mining claims. In a decision released on September 10, the MLC dismissed the application.
KWG holds a 30% interest in Cliffs' Big Daddy chromite deposit and has the right to earn 80% of the Black Horse chromite deposit. KWG also owns subsidiary Canada Chrome, which had staked claims and conducted a $15-million surveying and soil testing programme for the engineering and construction of a railroad to the Ring of Fire from Exton.