KWG Mission Statement

Global – Chromite Mining and Processing Economics

The value of the mineral chromite is in its content of the base metal chromium. The value of chromium is in its industrial applications, especially when alloyed with iron to produce a wide variety of steels that are more durable largely due to their corrosion resistance. Globally, 96% of the mined chromite is in support of the production of steel alloys and stainless steel.

Global demand for chromite is primarily driven by ferrochrome demand which is used for production of metal alloys. During 2012 about 69 percent of the globally produced chromite was used for the stainless steel production alone while 27 percent of the globally produced ferrochrome was used for alloy steel production

Global demand for chromite is primarily driven by ferrochrome demand which is used for production of metal alloys. During 2012 about 69 percent of the globally produced chromite was used for the stainless steel production alone while 27 percent of the globally produced ferrochrome was used for alloy steel production.

The growth of demand for chromium is predicated by the consumption of stainless steel products which have been growing phenomenally since WWII, especially in the last 15 years when consumers were provided with alternatives to products made of coated steel, such as stainless steel kitchen appliances.


Stainless Steel Kitchen


The producers of stainless steel consumer products purchase stainless steel from a compartmentalised supply chain.

Stainless steel is delivered to factories as coiled sheet from a roll plant who in turn buy custom stainless billots from a foundry that buys ferrochrome from a chromite smelter that in turn buys chromite from the miners. Any or all components of the supply chain are integrated.

pdf-icon-smallOutokumpu Integrated ferrochrome business in Kemi-Tornio | Investor Visit to Kemi Mine | Jyrki Salmi Vice President – Kemi Mine Outokumpu Ferrochrome, Kemi | October 7th, 2015

The only example of a fully integrated company is Finland’s Outokumpu who mine chromite from their own deposit in Finland that is feed for their ferrochrome smelter which feeds their foundry where ferrochrome is blended with iron and other metals such as nickel and vanadium to produce a variety of stainless steels, some of which is fashioned into finished products, such as tubing.


Stainless Steel Production 1900-2020

Stainless Steel Production 1900-2012


The driving force behind much of the growth of the stainless steel industry has been China’s ability to secure foreign supplies of both ferrochrome and chromite and transform this into stainless steel finished goods at a price point that is both competitive and disruptive to the existing consumer products market.

China does not have a domestic supply of chromium, it buys both chromite and ferrochrome from miners in South Africa, the dominant source of chromium on the planet, and to a lesser extent from miners in Kazakhstan, Turkey.

The growth of stainless steel production in Asia is well reflected in the following charts. South Africa’s increasing production of chromite is balanced with Asia’s increasing production of ferrochrome. China consumes 60% of the worlds chromium, as both chromite and ferrochrome.


Chrome Ore and Concentrate by Region 2001 to 2013

HC FeCr Charge Chrome Prodution by Region 2001 to 2013

Unlike most other major metals that can be traded through metals markets such as the LME, chromium as either chromite or ferrochrome is only bought and sold under contract, mostly directly between the miners and the foundries. As such, there is no avenue for speculators to influence the price as happens for most metals.

The relatively constant price from 2009 to date reflects a balance of supply and demand made possible by the contracts between the miners and the foundries. The foundries pay enough to guarantee delivery and supply shortages are rare. As such, there is very little opportunity for a potential new supplier.



The development of new supply of chromium into the existing commercial framework can only occur with support from the consumers in the form of a long term purchase commitment, an offtake agreement.





Economics Documentation Library


rof_cover-231x300

  • Ontario Chamber of Commerce Report | WHERE ARE WE NOW? A Report Card on the Ring of Fire| 2014
  • Ontario Chamber of Commerce Report | Beneath the Surface: Uncovering the Economic Potential of Ontario’s Ring of Fire
  • Thunder Bay, North Bay, Sault Ste. Marie, & Sudbury Chamber of Commerce Policy Resolution To Federal Government | Make The Ring of Fire A Priority Of National Significance| Visit Chamber Website –> Sept 22, 2016| Chamber Passes Ring of Fire Policy Resolution at CCC AGM
  • Outokumpu Integrated ferrochrome business in Kemi-Tornio | Investor Visit to Kemi Mine | Jyrki Salmi Vice President – Kemi Mine Outokumpu Ferrochrome, Kemi | October 7th, 2015
  • Background Paper, Economics, Resources Internal Affairs Library Of Parliament | Resource Development In Canada: A Case Study On The Ring Of Fire | Jed Chong | March 31, 2014
  • Mining in Northwestern Ontario | Opportunities and Challenges | Dr. Dadgostar Bahram, Professor Sam Garofalo, Dr. Nikola Gradojevic, Dr. Camillo Lento, Dr. Karen Peterson | September 27, 2012
  • MiningWatch Canada Report | Economic analysis of the Ring of Fire chromite mining play | Joan Kuyek, D.S.W. | January 25, 2011
  • Macquarie Commodities Research | The medium-term nickel market outlook | Jim Lennon –Consultant to Macquarie | May 2015
  • 
    
    



    
    

    First Nations Documentation Library


    111

    First Nation Treaty Map Ontario

  • Nishnawbe Aski Nation – DISCUSSION PAPERS | KEY CONSIDERATIONS FOR RESOURCE DEVELOPMENT IN NAN TERRITORY FOCUSING ON MINING | Les Louttit, Deputy Grand Chief
  • Nishnawbe Aski Nation – DISCUSSION PAPERS | The Future of Nishnawbe Aski Nation’s Economy | Les Louttit, Deputy Grand Chief
  • KWG – The Ring of Fire Partnership Presentation – Nishnawbe Aski Development (NADF) Event October 20th, 2016, Days Inn, Timmins, Ontario | pdf-icon-smallKWG – The Ring of Fire Partnership Presentation – Nishnawbe Aski Development (NADF) Event, October 20th, 2016, Days Inn, Timmins, Ontario
  • Ontario First Nation Treaties – NEED TO KNOW | Treaties
    What you need to know about treaties in Ontario | The Government of Ontario
  • Chiefs of Ontario Annual Report 2014 – 2015 | Strengthening Relations
  • With or Without You: First Nations Law (in Canada) McGill Law Journal 1996 | Strengthening Relations | John Borrows
  • 
    



    
    

    Environment Documentation Library


    Koper Lake, Ring of Fire, Ontario Canada

    Ring of Fire Area, Ontario Canada

  • SAFETY INFORMATION SHEET FOR STAINLESS STEEL Outokumpu | Outokumpu Safety Information Sheet | Dec 10, 2015
  • Case Study: Chromite mining and processing | Public Heath Ontario: Partners for Health | Ontario Agency for Health Protection and Promotion | April 2015
  • York University’s Institutional Repository, Undergraduate research paper | Ontario Ring of Fire Surface Water Susceptibility Analysis | Adlar Gross & Anatoliy Sirokvash, Professor Podour | April, 2015
  • Cancer incidence among Finnish ferrochromium and stainless steel production workers in 1967–2011:a cohort study | Conclusions: It is not likely that the occupational exposures in the Finnish ferrochromium and stainless steel industry would have increased the risk of cancer. | Markku Huvinen, Eero Pukkala | October 9, 2013
  • Occupational Exposure to Hexavalent Chromium – Center of the Disease Control and Prevention | Criteria for a Recommended Standard Occupational Exposure to Hexavalent Chromium | National Institute for Occupational Safety and Health (NIOSH) | September 2013
  • Faculty of Natural Resources Management Lakehead University | CHROMITE MINING | Environmental Assessment, Dr. M.A. (Peggy) Smith | March 14, 2012
  • Priority Substances List Assessment Report: Canadian Environmental Protection Act | Chromium and its Compounds | Government of Canada Environment Canada Health Canada | 1994
  • 
    



    
    

    Rail Documentation Library


    The GreenForest Management Road Study

    The GreenForest Management Road Study

  • Green Forest PDF REPORT | Green Forest Management Inc. | RING OF FIRE & NORTHERN ONTARIO COMMUNITY ALL-WEATHER ROAD ACCESS | Released 2016
  • Northern Policy Institute PDF REPORT | Northern Policy Institute, Roads, Rail, and the Ring of Fire | October 2015
  • Northern Policy Institute Port Authority Model | PDF REPORT | The Airport/Port Transportation Authority Model – Is It Applicable for Ontario’s Ring of Fire Mineral Development? | Northern Policy Institute | Nick Mulde | Friday, June 13, 2014
  • Pope & Company PDF REPORT | A New Technology for a New Chromite District | Pope & Company | July 10, 2013
  • Tetra Tech WEI Inc PDF REPORT | KWG Resources Inc. released a study that it commissioned by the international engineering firm Tetra Tech WEI Inc. to compare the capital and operating costs of both a railroad and an all-weather road to the Ring of Fire. | February 21st, 2013
  • KWG PDF PRESENTATION | KWG hired Minnesota-based consultants Krech-Ojard and Associates and Golder Associates to study the potential for rail access and carry out geotechnical studies. | Dec 20, 2012
  • Krech Ojard & Associates Newsletter DOWNLOAD PDF | KWG hired Minnesota-based consultants Krech-Ojard to study the potential for rail access and carry out geotechnical studies. | Spring 2010
  • CANADA CHROME RAILWAY PROJECT PDF TIMES STAR | CANADA CHROME RAILWAY PROJECT Times Star, Greenstone | Jan 20, 2010
  • OVERVIEW | Early History Overview Rail Corridor Routes
  • 
    



    
    

    Chromium IP Documentation Library


    Scanning Electron Micrograph of Reduced Chromite Ore Using Natural Gas

    Scanning Electron Micrograph of Reduced Chromite Ore Using Natural Gas

  • Winter, Frank – PROVISIONAL PATENT | KWG Resources Inc. (Assignee) Provisional Patent: Production of chrome alloys directly from chromite ores. | US 61/893,400 International 4562PCT, 21 October 2013
  • Glencore XPS – KWG PRESS RELEASE | Black Horse Smelting Test Produces 61.9% Cr In Ferrochrome | August 14, 2013
  • Pope & Company PDF REPORT | A New Technology for a New Chromite District | Pope & Company | July 10, 2013
  • Naicker, O and Riley, T. – ABSTRACT | Xstrata Alloys in profile. South African Pyrometallurgy | Ed R. T Jones, SAIMM March 2006
  • Barnes, A.R and Eric, R.H. – ABSTRACT | The Relative Reducibilities of Chromite Ores and Relative Reactivity of Carbonaceous Reductants. | Infacon 7. Trondheim 1995
  • Ruhmer, W.T – GOOGLE BOOKS | Ruhmer, W.T Handbook on the estimation of metallurgical process costs. | Mintek, 1991
  • Barnes, A.R; Finn, C.W.P and Algie, S.H. – ABSTRACT | The Pre-reduction and smelting of chromite concentrates of low chromium-to-iron ratio. | JSAIMM March 1983
  • Nuttington, R.C. Barcza, N.A. – ABSTRACT | Pre-reduction of Fluxed Chromite Ore Pellets Under Oxidizing Conditions | Mintek, 1989
  • Click here to translate »