Cliffs invests $800m to chromite deposit

Jan. 27, 2010
Shareholders with Freewest Resources have voted in favour of a friendly takeover bid by Cliffs Natural Resources.
The $240-million transaction clears the way for development of a major chromite deposit in this region.
Freewest has offices in Thunder Bay, and owns the staking rights to the big deposit located in the Ring of Fire, north of Greenstone. Chromite is the main ingredient in stainless steel, and Cliffs has promised to invest $800 million to develop a mine and build a processing plant somewhere on the North Shore of Lake Superior.
Freewest vice-president Don Hoy said the open pit and processing facilities could be operational by 2015, and produce up to 800,000 tonnes of chromite each year. Meanwhile, the area in question is the site of a community blockade by members of the Marten Falls and Webequie First Nations.
Hoy said his company is respecting the blockade, and has started a dialogue to negotiate with the First Nation communities organizing and participating in them.
He added that there are clearly some issues that need addressing, in terms of job creation and other opportunities for the First Nations.
Hoy said he is confident they have a good relationship that can be built upon in the future.