KWG Mission Statement

FIRST NATIONS AS EQUAL PARTNERS: RAIL, MINE AND NATURAL GAS CHROMIUM REDUCTION

TREATY RIGHTS: INFORMED CONSENT & SHARING THE FUTURE

In April of 2013, phase II of the Mining Act Modernization (MAM) of Bill 173, introduced a new regulatory system affecting plans and permits for early stage mineral exploration under Ontario’s Mining Act, (Click here) to promote mineral exploration and development in a manner that recognizes Aboriginal and treaty rights.

Accordingly, KWG Resources sought the possibility of equal ownership and partnership of the Ring of Fire railway through discussions with the First Nations of the area. The railway corridor would cross their traditional lands and the natural conclusion was that the First Nations should benefit in a meaningful way. KWG Resources supports a ‘non-profit railway utility’, as an operational model, and is committed to a full resource sharing formula with First Nation ownership and partnership in the mining and reduction operations as well.

NEGOTIATION PROTOCOL RESPECTING EARLY EXPLORATION IN THE RING OF FIRE

KWG Resources has discussed (Click here) an outline of principal terms for the possible creation of an equal partnership with the Chiefs of the Webequie and Marten Falls First Nations, through which to undertake the development and exploitation of mineral deposits in the Ring of Fire.

The parties have also agreed to discuss, at a later date, the opportunities for equity participation in KWG subsidiary Muketi Metallurgical LP, which is prosecuting two chromite-refining patent applications in Canada, India, Indonesia, Japan, Kazakhstan, South Africa, South Korea, Turkey, and USA.

ROF RAILWAY CORRIDOR

The GreenForest Management Road Study

The GreenForest Management Road Study

KWG Resources Inc. co-discovered the Ring of Fire chromite deposits and staked and assessed adjoining claims along a 330 kilometer-long series of sand ridges to insure the discoveries could access markets via an ore-haulage railroad on top of the sand ridges.

(Click here) KWG Resources Inc. signed agreements with China Railway First Survey & Design Institute Group C., Ltd. (FSDI), to assist KWG to secure financing in China for construction of the railroad upon completing a bankable feasibility study by 2017. FSDI had conducted a 9-man engineering site-reconnaissance on the Ring of Fire railway corridor during 2016.

As the various studies and plans are completed, they will be shared with the Chiefs of the Marten Falls and Webequie First Nations for dissemination within their communities to facilitate consideration of KWG’s proposal to create an equal partnership with them in the integrated mining and transportation operations.

KWG independently staked the railroad route to make all the ring of fire deposits viable and to acquire in-situ aggregates for railroad construction.

Rail construction supplies can be transported via a new industrial road branching off existing roads to the west, and provide numerous remote communities with economical new road-transportation.

As part of efforts to develop the mineral potential in Northern Ontario’s Ring of Fire and to allow for safe road-based access to northern First Nation communities, KWG Resources Inc. retained GreenForest Management Inc. (GFMI) to conduct (Click here) a preliminary scoping exercise to locate an all-weather access road network and provide an associated cost projection. This scoping exercise focused on the location of the most cost effective, feasible and efficient location of all-weather roads in the project area.

The (Click here) Tetra Tech study forecast that the rail option capital cost would be approximately $1.56 billion and have unit operating costs of $10. 50 per tonne based on 3 mtpy transported and that the road option would have capital expenditures of approximately $1.05 billion but would have unit operating costs of $60.78 per tonne based on a similar tonnage hauled. If 5 million tonnes per year are shipped, it is estimated that those operating costs per tonne would be reduced to $6.33 for rail and $59.28 for trucking.

Under a southern, single-site, natural gas ‘integrated concentrator/reducer operations’ scenario, 8 mtpy of chromite ore could be transported on the Ring of Fire railway, and then firstly be reduced to concentrate and subsequently be reduced to ferrochome in the Greenstone area.

SMALL MINE SITE FOOT-PRINT FOR THE BLACK HORSE DEPOSIT


Figure 21

KWG 3-D structural model of the 14 kilometer-long chromite horizon. From analogue and structural analysis, the depth extension of the deposit is expected to exceed its length.



Part of our mission for the development of the Ring of Fire, is to ensure that the whole project is environmentally and economically sustainable, which includes the mining operation.

A large regional project, such as the Ring of Fire, requires a truly holistic approach, where the role of each industry participant can not be oversimplified. The project components are inter-dependent. A ROF corporate project leader must oversee the chromite mining and reduction operations, the mining infrastructure corridor, and also facilitate planning and work closely with the province of Ontario and local communities to build the supporting all-weather roads. To be successful and to ensure that the whole project is environmentally, economically and socially sustainable, this momentous legacy project, must follow a multi-dimensional, comprehensive approach.

Due to the delicate environmental sensitivity in and around the Ring of Fire chromite mine area, most of the ore processing should occur 350 kilometres south, where the warmer weather and more easily contained milling operations, create favourable conditions for environmental control.

The Ring of Fire wetlands requires commitment to a very small mine ‘footprint’, where operations are mostly preformed underground.

The crushed, un-processed, run-of-mine (ROM) chromite ore, taken from underground through a relatively small mine shaft, will be directly loaded onto adjacent rail cars. There will be very little disturbance above ground.

A small mine footprint would not be possible without the “economies of scale” that come with rail transportation, enabling economic movement of large volumes of un-processed chromite ore. Even chromite concentrate requires rail transport, due to the nature of this heavy bulk commodity.

One of the most important elements of the vision is to become full and equal partners with the Webequie and Marten Falls First Nations, whose lands will be directly affected. A true resource sharing formula should include First Nation ownership and partnership in the mining, transportation and ore reduction operations. The result will produce positive financial impact for all parties of the partnership. Reducing the chromite ore in a southern location, well away from the Ring of Fire, makes sense from an environmental and economic point of view. The plants would be situated near existing infrastructure and communities, where their revenue benefits will be maximized in a Greeenstone chromite reduction location with a minimized environmental impact of the sensitive wetlands.

The possible extension of the (Click here) Black Horse chromite deposit to depth and along strike, remains to be drilled.





Economics Documentation Library


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  • 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
  • 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
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    First Nations Documentation Library


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    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
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    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
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    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
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    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