Mineral price raises Ring of Fire hopes

Despite some gloomy forecasts earlier this fall, prices for a main mineral in Ontario’s stalled Ring of Fire mining belt are slated to rise, says one of the region’s main proponents.

Toronto-based KWG said last week that updated market forecasts suggest prices for chromium will rise to $1.65 per pound — a 50-per-cent increase — by early next year.

“Until a few days ago, chromium was priced at $1.10 per pound,” said a KWG news release.

Chromium, a key ingredient in stainless-steel production, is derived from chromite — a main mineral under exploration in the Ring of Fire zone about 500 kilometres north-east of Thunder Bay.

The rosier forecast for chromium prices follows a resolution of delivery issues between China and the world’s major chromium exporter, South Africa, said a KWG news release. As a result, KWG says, the potential value of Ring of Fire chromite is much higher, contrary to earlier media reports.

It’s believed that, based on exploration by KWG and other companies, the Ring of Fire contains at least 343.4 million tonnes of chromite.

Meanwhile, the province has been urged by another Ring of Fire proponent — Toronto-based Noront Resources — to make a decision early next year on where to build an all-weather access road into the mining region.

Noront has argued for an east-west route that would link its proposed Eagle’s Nest nickel mine with Pickle Lake.