Noront Selects Sault Ste. Marie Site for Ferrochrome Production Facility
May 07 2019 - 11:05AM
Noront Resources Ltd. (“Noront” or the “Company”) (TSX
Venture: NOT) has selected the Algoma Steel Inc. site in Sault Ste.
Marie for its Ferrochrome Production Facility (FPF). The Timmins
Kidd Metsite is no longer being considered.
Four communities participated in the initial
bidding process which began in February 2018. All submissions were
evaluated based on a comprehensive set of criteria determined by
Noront and the engineering firm Hatch, which was engaged to assist
in the adjudication process. Critical factors included
environmental and site suitability, capital costs, operating costs
and an assessment of community acceptance for hosting the
facility.
Sudbury and Thunder Bay were eliminated in July
of 2018. After a thorough and rigorous analysis of the two
remaining sites in Sault Ste. Marie and Timmins, the Timmins Kidd
Metsite was eliminated as well. A further refinement of the
operating and capital costs of the final sites was completed with
the following results:
- Timmins is the slightly lower capital cost option; and
- Sault Ste. Marie has a lower operating cost per pound of chrome
in ferrochrome.
The two sites are similar on a discounted NPV
(net present value) basis, but on a cash flow basis, when a
potential 100-year life for project is accounted for, the analysis
favours Sault Ste. Marie.
“It was a very difficult decision because both
cities submitted excellent proposals,” said Noront President and
CEO Alan Coutts. “In the end we were persuaded to go with Sault
Ste. Marie because it is located on the Great Lakes and offers a
lower long-term operating cost advantage.”
Sault Ste Marie Mayor Christian Provenzano
commented, “This establishes what we know to be true: Sault Ste.
Marie is a great place to do business. I want to recognize the
efforts of the FPF project team, the support of the executive
leadership at Algoma Steel, and the support of MP Sheehan, MPP
Romano, Batchewana First Nation Chief Sayers and Garden River First
Nation Chief Syrette. I also want to ensure our community and our
Indigenous partners that we are committed to substantial
consultation and engagement as we move forward.”
“Our government is committed to growing the
economy, creating good jobs, and most importantly, ensuring that
Northern Ontario is open for business,” said Greg Rickford,
Minister of Energy, Northern Development and Mines. “Today’s
announcement confirms that commitment. Congratulations to Noront
Resources and the City of Sault Ste. Marie.”
The next step will be to finalize the
development plan and timelines for an all-season road to the Ring
of Fire with the provincial government and their community
partners. Noront anticipates a lengthy and comprehensive FPF
environmental permitting process which will allow the Company to
engage in a fulsome way with the citizens of Sault Ste. Marie and
other stakeholders including environmental groups and First
Nations.
The following preliminary schedule for
activities (milestones) is subject to financing:
Noront Ferrochrome Production
FacilityPreliminary Activity
Schedule |
Q2 2019 |
Site Selection |
Q2 2020 |
Blackbird/FPF Preliminary Economic Assessment |
Q2 2022 |
Blackbird/FPF Prefeasibility Study (PFS)Updated Tenancy
Agreement |
Q4 2024 |
Blackbird/Feasibility Study (FS) and Environmental Assessment
(EA) |
Q2 2025 |
Project Permits/Approvals/FundingProject Construction
Initiated |
Q2 2028 |
Project Commissioned |
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/a64dcac2-4a8d-4277-a120-127ad8fa5209
About Noront ResourcesNoront
Resources Ltd. is focused on the development of its high-grade
Eagle’s Nest nickel, copper, platinum and palladium deposit and the
world class chromite deposits including Blackbird, Black Thor, and
Big Daddy, all of which are located in the James Bay Lowlands of
Ontario in an emerging metals camp known as the Ring of Fire.
www.norontresources.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For more information:Janice
Mandeljanice.mandel@stringcom.com 647-300-3853
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