Cliff Natural Resources to halt $3.3bn Chromite project in Canada

21 November 2013 (Last Updated November 21st, 2013 18:30)

Mining firm Cliff Natural Resources has revealed plans to suspend its $3.3bn Chromite project in Canada by the end of 2013.

Mining firm Cliff Natural Resources has revealed plans to suspend its $3.3bn Chromite project in Canada by the end of 2013.

Located in the Ring of Fire area of Northern Ontario, the project is anticipated to produce 600,000t of ferrochrome per year.

The company said that it will not allocate additional capital for the project due to the uncertain timeline and risks associated with the development of the necessary infrastructure.

Cliffs suspended the environmental assessment activities in June 2013 due to delays in discussions with the provincial government and uncertainty over the review process.

Cliffs senior vice president, strategy & business development Bill Boor said the company continues to believe in the value of the mineral deposits and the potential of the Ring of Fire region for Northern Ontario.

"As we've assessed the current challenges in the region and the costs to continue on the current path, we decided to suspend the Chromite project indefinitely," Boor added.

"Unfortunately, we will reduce the project team staffing and close our Thunder Bay and Toronto offices, as well as the exploration camp site."

The technical project work including the feasibility study, and development and exploration activities will be stopped. A date has not been scheduled to restart the activities.

Cliffs said it will continue its work with the Government of Ontario, First Nation communities and other interested parties to explore potential solutions related to the critical issue of infrastructure for the Ring of Fire region.

Cliffs operates iron ore and coal mines in North America and an iron ore mining complex in Western Australia.

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