AUSTRALIAN MINERS IN CANADA

Canadian nickel miner still wants BHP takeover, shunning Forrest

BNN/BLOOMBERG
Aug 20, 2021

A small Canadian nickel miner reiterated support for takeover by BHP Group after its largest shareholder, Australian mining magnate Andrew Forrest, tried snubbing the deal.

Noront Resources Ltd. said Friday in a statement that its board continues to recommend that shareholders accept BHP’s cash offer that values the company at CUS$325 million (US$254 million), a day after Forrest’s Wyloo Metals Pty Ltd. said it wouldn’t sell its shares to the world’s largest miner. Wyloo Metals, which owns about 25 per cent of Noront and holds a convertible loan that could lift its control to 37 per cent, said it would consider making a superior offer.

The wrangle over the Toronto-based minerals explorer highlights a race among mining heavyweights to control supplies of raw materials that are key to a clean energy future. Noront has been developing one of Canada’s largest potential mineral reserves, in a largely untapped northern Ontario region dubbed the Ring of Fire. The high-grade nickel deposit also has chromite, copper and zinc. Nickel is one of the key metals used in batteries for electric vehicles.

Noront, whose main asset is the Eagle’s Nest nickel-and-copper deposit in the Ontario region, said success of BHP’s offer doesn’t require Wyloo’s support, according to the statement. Noront shares fell 4.8 per cent to 50 Canadian cents at 10:56 a.m. trading in Toronto, below BHP’s 55-cent-a-share offer made July 27.

Noront still sides with BHP's deal to acquire Ring of Fire deposits

Mine developer calls Wyloo statements "misleading" to shareholders, BHP offer provides better value

a day ago By: Northern Ontario Business Staff

Noront Resources' Esker Camp in the James Bay lowlands

Ring of Fire mine developer Noront Resources remains firm on favouring a $325-million deal by international miner BHP to buy their nickel, copper, palladium assets in the Far North.

Noront, the subject of an inside takeover attempt by its largest shareholder, Wyloo Metals, fired back at the Australian mining company for several "misleading statements" made this week stemming from a new bid by BHP to acquire them.

In late July, BHP Lonsdale, made an offer to acquire Noront for $325 million, at $0.55 cents a share, beating out Wyloo's announced offer from May of $133 million, at $0.315 per share.

Noront claims Wyloo hasn't made a formal offer to acquire them, only announced an intention to do so.

Wyloo is Noront's biggest shareholder at 24 per cent and said it intends to increase that to 37 per cent shortly by converting a loan into common shares of Noront.

BHP, through a subsidiary company, owns 3.7 per cent of Noront.

In an Aug. 20 news release, Noront reiterated an earlier recommendation by its board of directors that Noront shareholders to accept the BHP offer, deeming it "fair, from a financial point of view" and to "tender their Noront shares as soon as possible."

Noront's highly-prized claims in the remote James Bay region includes the high-grade Eagle’s Nest nickel, copper, platinum and palladium deposit and a string of high-grade chromite deposits in the Far North mineral belt called the Ring of Fire, 500 kilometres northeast of Thunder Bay.

This week, Wyloo made the claim that that Noront has denied them access to due diligence information in order to made a better offer to shareholders than BHP's.

Noront responded that on transactions of this nature, it's customary for interested parties to enter into a confidentiality agreement before Noront provides any due diligence information. 

BHP has agreed to this, Noront said, but Wyloo "declined to do so."

Contrary to Wyloo's assertions, Noront further said Wyloo's support is "not required" for this transaction for BHP's offer "to be successful."

"The minimum tender condition for the offer is that more than 50 per cent of the shares not owned by BHP be tendered to the (BHP) offer, and this condition can be satisfied regardless of whether Wyloo tenders its Noront shares to the offer."

Wyloo Metals not a huge fan of BHP muscling its way into the Ring of Fire

Australian mining investor insists it's not giving up its grip to mineral riches in the Far North

2 d By: Northern Ontario Business Staff

Noront Resource's exploration camp in the Ring of Fire (Noront photo)

An Australian slug fest appears to be shaping up in a contest to acquire Noront Resources and some of the choice, almost mining-ready, nickel and chromite deposits in the Ring of Fire.

Wyloo Metals said in an Aug. 19 news release it's not backing down from a rival bid by BHP to acquire Toronto-based junior miner Noront, insisting it has no intention of relinquishing its majority position to maintain control of Canada's next great mining camp in the James Bay region.

Perth-headquartered Wyloo finally broke its month-long silence after Melbourne-based BHP, one of the world's largest mining companies, jumped into the fray in July with a cash offer of $325 million, at $0.55 cents a share, to Noront investors, besting Wyloo's overture to Noront last May of $133 million, at $0.315 per share.

Viewing Wyloo's move as a hostile takeover, Noront's board of directors recently recommended shareholders accept the BHP offer.

In the release, Wyloo said its "disappointed" Noront's board chose not to "meaningfully engage or negotiate" prior to accepting BHP's offer.

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Privately-held Wyloo came aboard as Noront's largest shareholder last December, picking up the 23 per cent stake vacated by Resources Capital Fund. By late May, Wyloo boldly elected to acquire all of the outstanding common shares of Noront before BHP entered the scene in late July.

BHP's offer came through BHP Lonsdale, a BHP subsidiary company and owner of 3.7 per cent of Noront shares.

Wyloo is a Perth-based subsidiary of Australian mining magnate Andrew Forrest's Tattarang. The company said it intends to increase its stake in Noront from 24 pe cent to 37 per cent by converting a US$15-million convertible loan into common shares of Noront.

In the release, Wyloo said BHP's bid is unlikely to succeed given the "minimum mandatory tender condition...is unlikely to be satisfied" without Wyloo's support as a cornerstone investor in Noront.

Wyloo further claims it's being stonewalled by Noront from being able to upgrade its offer to Noront's shareholders. The company said it's prepared to make a "superior offer" if only it were allowed to access the books.

"Despite numerous attempts to date, the Noront board has denied Wyloo Metals from obtaining access to due diligence on reasonable terms for a shareholder with a cornerstone position.

"Unfortunately, the total value of any superior offer contemplated by Wyloo Metals must accommodate the Cdn$13 million break fee payable to BHP, which was agreed to by the Noront Board to the direct detriment of Noront’s shareholders."

Wyloo said Noront's land package "hosts some of the most prospective mineral deposits in the world" with the potential for become "Canada’s next great mineral district, supporting the production of future-facing commodities for multiple generations."

"Wyloo Metals continues to firmly believe in the immense potential of the Ring of Fire and therefore does not intend to support or tender its Noront shares to BHP's offer."

Forrest declares nickel war on BHP

Brad Thompson Reporter
Updated Aug 20, 2021 – 

Andrew Forrest has declared his intention to battle BHP for nickel assets and is casting a big shadow over what could emerge as a bidding war for Western Areas that has implications for BHP’s ambitions in battery metals.

Forrest-owned Wyloo Metals said it opposed BHP’s takeover bid for Noront Resources in Canada and is willing become involved in a bidding war for the promising nickel producer.

And a day after IGO Limited confirmed it was in takeover talks with Western Areas, it was revealed Forrest-owned Wyloo Metals has accumulated a 5.28 per cent stake in Western Areas

.
Andrew Forrest is set to have a say on nickel consolidation in WA. Rebecca Mansell

The stake, together with others in West Australian-based nickel players, means the iron ore billionaire will at least have a big say in any predicted consolidation in the sector.

The move makes the nickel-rich area of WA the second front on which Dr Forrest and BHP’s growing interests in the key battery metal may potentially clash. They are now in open warfare in Canada over Noront and control of projects in the mineral-rich Ring of Fire region in the James Bay Lowlands of Northern Ontario.

Breaking its silence on BHP trumping its bid for Noront with a $C325 million offer last month, Wyloo said it was willing to fight BHP for control.

“Noront’s Ring of Fire land package hosts some of the most prospective mineral deposits in the world,” Wyloo said.

“These deposits have the potential to become Canada’s next great mineral district, supporting the production of future-facing commodities for multiple generations.

“Wyloo Metals continues to firmly believe in the immense potential of the Ring of Fire and therefore does not intend to support or tender its Noront shares to BHP’s offer.“

Wyloo said it was disappointed that the Noront board did not seek to meaningfully engage or negotiate with it before accepting the BHP offer.

The Forrest entity camp said its cornerstone interest of in Noront amounted to 37.5 per cent on a partially diluted basis and BHP’s bid was unlikely to succeed without its support.

Wyloo claimed the Noront board was standing in the way of it making a superior takeover offer.

“Wyloo Metals would consider proposing a superior offer to acquire the outstanding common shares of Noront it does not already own, should it be provided with access to due diligence,” it said.

“Despite numerous attempts to date, the Noront board has denied Wyloo Metals from obtaining access to due diligence on reasonable terms for a shareholder with a cornerstone position.“

Wyloo said it was “unfortunate” that the total value of any superior offer it was contemplating would need to accommodate a $C13 million break fee payable to BHP, which “was agreed to by the Noront board to the direct detriment of Noront’s shareholders”.

Closer to his home in WA, Dr Forrest’s moves could also prompt a response from BHP given its relies on Western Areas, IGO and other smaller companies for a portion of the nickel it will need to supply Elon Musk’s Tesla and other car and battery-making customers through BHP Nickel West.

Wyloo, owned by Dr Forrest’s private investment company, Tattarang, has a 15 per cent stake in Mincor Resources, which is gearing up to produce 15,000 tonnes of nickel a year and supply BHP Nickel West.

Wyloo also owns shares in Panoramic Resources, a nickel player preparing to restart its Savannah operation in WA’s remote east Kimberley.

Run by Tattarang young gun Luca Giacovazzi, Wyloo has been accumulating shares in Western Areas since March, reaching the 5.23 per cent mark on Thursday as IGO and Western Areas confirmed takeover talks after being flushed out by an exclusive report in The Australian Financial Review’s Street Talk column.

RELATED
BHP beats Forrest in takeover battle for prized nickel project

Analysts have said IGO, looking to shore up nickel production as its Nova mine comes to the end of its life, will need to fork out more than $1 billion to secure Western Areas.

Wyloo was a step ahead of BHP in Canada, where it took a substantial share in Noront and then launched a takeover bid. BHP reacted by trumping the Wyloo offer for Noront and its highly rated Eagle’s Nest nickel project.

The Western Areas share price has jumped from $2.47 on Wednesday to $2.95 in trading on Friday.
Brad Thompson writes across business and politics from Western Australia for The Australian Financial Review. Brad is based in our Perth bureau. Connect with Brad on Twitter. Email Brad at bradthompson@afr.com

ONTARIO

Noront receives official Wyloo offer, trumping BHP bid

The success of either bid will put high-profile Ring of Fire nickel asset in Australian hands.

Canadian Mining Journal Staff | September 7, 2021 

Noront Resources’ Esker camp in Ontario’s Ring of Fire. Credit: Noront Resources

Noront Resources (TSXV: NOT) has finally received a formal offer from Wyloo Resources – more than three months after Wyloo first floated a proposal to acquire the Ring of Fire junior in late May.


The C$0.70 per share offer trumps BHP’s (NYSE: BHP; LSE: BHP; ASX: BHP) friendly C$0.55 per share bid for Noront, made in late July.

It’s also more than double what Wyloo first proposed in May — C$0.315 per share.

The success of either bid will put high-profile Ring of Fire nickel asset in Australian hands.

Wyloo, a private company controlled by Australian billionaire Andrew Forrest, submitted the offer to Noront’s board on Friday, Sept. 3, after Noront invited it on Aug. 31 to make its proposal official. Wyloo says it wants to develop a “Future Metals” hub in Ontario, building on Noront’s Eagle’s Nest project, a high-grade nickel-copper-PGE deposit in the remote Ring of Fire region.

But even though it has now formally submitted its offer, the Perth-based company has continued to lob criticisms at Noront’s board. In its most recent statement, it implied that Noront’s directors and officers have continued to support BHP’s bid because under a lockup agreement signed with the giant Australia-based miner, they gain earlier access to certain options or share awards – a benefit with a gross monetary value of C$10 billion ($7.9bn) at BHP’s offer price. In addition, Wyloo doesn’t like the terms of a confidentiality agreement it has now entered into in order to conduct due diligence.

According to Noront’s July 27 support agreement with BHP, the junior can only provide confidential information to another party only if it signs a confidentiality agreement and agrees to a standstill provision. In the interest of Noront shareholders, the company says that BHP has agreed to waive the standstill requirement.

However, Wyloo says the confidentiality agreement still restricts its ability to communicate directly with shareholders.

For its part, Noront says the agreement and the terms of its support agreement with BHP are standard.

“Wyloo’s assertions that, among other things, the exercise of options and share awards by Noront officers and directors is unusual is simply incorrect,” the company said. “The acceleration provisions provided in the support agreement for the options and share awards are also customary for a transaction of this nature and are fully disclosed in the support agreement and other public filings relating to the proposed transaction with BHP.”

The lock-up agreements between BHP and Noront’s officers and directors will automatically terminate if Noront ends its support for the BHP bid in response to a higher offer.

Noront also confirmed it has no undisclosed agreements, understandings or incentives for its directors or officers in connection with the BHP offer.

Notably, while Wyloo is Noront’s biggest shareholder, the junior’s board did not support its proposal and adopted a poison pill provision to block it.

In its release on Aug. 30, Wyloo said it only made the initial offer because of Noront’s intention to strike a deal with BHP that it says undervalued the Ring of Fire assets.

“In April this year, we were deeply concerned when the Noront board proposed to farm out Noront’s exploration projects to BHP for only C$25 million,” said Luca Giacovazzi, head of Wyloo Metals. “Rather than consenting to such a transaction, we decided to make an offer to acquire the company. Our fears were justified when the Noront board completed a deeply discounted 5% placement to BHP, giving away a strategic toehold in the company to an obvious suitor.”

Giacovazzi added: “Since our initial proposal, we have listened to the feedback from shareholders who, like us, believe in the future of the Ring of Fire. We believe Noront shareholders deserve the chance to decide whether to join us in rebuilding the company, and not be pressured into selling all of their shares unless they want to.”

Noront has said that it sought a bid from BHP in its search for a superior offer to Wyloo’s initial proposal in May.

Wyloo, which now owns a 24.4% stake in Noront, asserts that given its holding and the superiority of its new offer to BHP’s bid, its proposal has a better chance of success. (The company can increase its interest to 37.2% by converting a $15 million convertible loan into common shares before the Sept. 30, 2021 maturity date.) However, the BHP bid only requires 50% of the shares not already owned by BHP to be tendered.
Details of the proposal

Wyloo says it will give shareholders the choice between retaining some or all of their shares in a revamped Noront, with a board of directors headed by Andrew Forrest, or taking the cash offer.

Other board members would include former Sherritt International CEO Ian Delaney; chairman and CEO of Queen’s Road Capital Investment Warren Gilman; and current Noront director Giacovazzi.

In a direct appeal to shareholders, Forrest pledged that Noront would make more progress under his leadership.

“After years of little progress, it’s understandable that shareholders have lost hope in Noront,” Forrest said in a statement. “I’ve personally been in the same position before. Seventeen years ago, people told me Fortescue’s deposits would never be mined because there was no infrastructure to access our projects. We proved those critics totally wrong and we want to do the same in the Ring of Fire. If shareholders share my view, that it’s impossible to place a value today on a new mining district with the immense potential of these assets, I invite them to hold on to their shares and come along for the ride.”

The company adds that it is also committed to creating business opportunities for First Nations communities, pointing to the success of its Billion Opportunities program created in 2011.

(This article first appeared in the Canadian Mining Journal)

Wyloo Metals CEO gives update on Ring of Fire mining projects, though First Nations resistance continues

Some First Nations still opposed to development as need for critical minerals grows

Kristan Straub, CEO of Wyloo metals, says mining can be done in a sustainable way within the Ring of Fire.(Marc Doucette/CBC)

January 23, 2024

CBC Indigenous: As the demand for critical minerals grows, the CEO of the main company involved in northern Ontario’s Ring of Fire says it’s developing a nickel deposit that could be producing minerals for two decades.

Wyloo Metals CEO Kristan Straub gave the update Tuesday in a speech to business leaders in Thunder Bay, where he outlined the company’s plans for the Ring of Fire and discussed how his company is engaging with First Nations in the region now and into the future.

“[Eagle’s Nest] is Canada’s best opportunity for a new nickel sulphide deposit,” Straub said.

Straub was speaking about Wyloo’s Eagles Nest site, approximately 500 kilometers northeast of Thunder Bay. Of all the company’s mining hopes in northern Ontario’s Ring of Fire mineral deposit, he said this site is where it is choosing to develop first. It’s the most promising discovery and the mining project closest to production in the region.

Eagle’s Nest would produce 15,000 tons of nickel annually for an expected 20 years, said Straub.

Wyloo metals, (formerly known as Ring of Fire Metals and Noront Resources) is an Australian-based mining giant ultimately controlled by billionaire Andrew Forrest. The company holds the majority of established mining claims in the region, which it says contains minerals worth around $90 billion.
Thousands protest mining exploration on Indigenous land in Ontario

WATCH | Protest against mineral development draws thousands to Queen’s Park: 4 months ago – Duration 2:01

Thousands of Indigenous people people gathered at the Ontario Legislature to demand a face-to-face meeting with Premier Doug Ford. They say the province has allowed thousands of mining applications without their knowledge or consent.

Click on the following link to view the video:

https://www.cbc.ca/news/canada/thunder-bay/wyloo-metals-ceo-update-1.7092369

The province considers nine First Nations to be within the Ring of Fire– and Wyloo has promises for them. Straub said the company is aiming for a workforce composed of at least 50 per cent Indigenous employees, and plans to award millions of dollars of contracts to local, Indigenous-owned businesses willing to collaborate.

Two of those First Nations — Webequie and Marten Falls — have signed memorandums of understanding with Wyloo, and they are both leading an environmental assessment on a proposed road to the Ring of Fire, Straub said. Ontario approves environmental assessment terms of reference for 3rd and final road to Ring of Fire
Consultations continue as 2 First Nations work toward road to Ring of Fire in northern Ontario

The Northern Road Link project would connect two other proposed roads: one is an access road that will connect the community with the provincial highway system to the south. The second project is the so-called “Northern Road Link” that would lead to a proposed Ring of Fire mining site known as Eagle’s Nest.

The Northern Road Link is being touted as a critical lifeline. For prospectors, it would provide a pathway to minerals needed to build the electric vehicle batteries that are hoped to fuel Canada’s green economy.

For Webequie and Marten Falls, it’s hoped to bring wide-scale economic development and better access to goods and services.

“Webequie and Marten Falls are definitely the two closest First Nations in a nearby framework, and those are the two that we continue to work with,” said Straub. “The First Nations that are in the region around, we’ll look to build the support and the collaboration with them. Ultimately that’s their decision whether they partner in or not.”

While other First Nations say they respect Webequie and Marten Falls’ position, many aren’t willing to go along with development just yet.
Resistance from some First Nations in northwestern Ontario

There’s been pushback surrounding mining in the Ring of Fire and how consultations with Indigenous communities are handled, with recent rallies led by members of the First Nations Land Defence Alliance at Queen’s Park.

Last summer, 10 First Nations from Treaty 9 filed a lawsuit against Ontario and the federal government to fundamentally change the way resources and land management decisions are made in the region. That case is early on in the court process.

The Ojibways of Onigaming are the latest nation to join the Land Defence Alliance. Elected Chief Jeff Copenace said they signed on for strength in numbers he hopes will protect their lands and waters.

“We’re not going to stand by idly and let you destroy our lakes as our young people are dying,” said Copenace. “If you’re not going to help save our lives… then you can’t have access to land and waters.”

https://www.cbc.ca/news/canada/thunder-bay/wyloo-metals-ceo-update-1.7092369

Like many northern Ontario First Nations, Onigaming has declared a state of emergency as youth suffer from mental health issues, addiction and suicide. Copenace said he can remember at least 32 community members who have died over just the past 2.5 years– which is felt heavily by the reserve of 490. Inside the battle over Ontario’s Ring of Fire
Mining claims jump in northern Ontario’s Ring of Fire as EV battery interest grows
First Nations leaders demand equal partnership in Ottawa’s ‘broken’ regional assessment for Ring of Fire

Onigaming plans to develop a youth crisis center and recreation multiplex, in hopes it will help struggling community members. The recreation center will also provide a much-needed space to hold the community’s many funerals.

“We’ve been doing them in the school and we just made a decision this past year not to do them in the school anymore because of how heavily we’re traumatizing the children,” said Copenace.

Responding to the state of emergency means there is little bandwidth left for resource negotiation, he said. “It’s impossible for us to come to the table because we’re always having funerals, because we’re always dealing with young people that are suicidal,” said Copenace.

ABOUT THE AUTHOR

Michelle Allan, Reporter

Michelle Allan is a reporter at CBC Thunder Bay. She’s worked with the CBC’s Investigative Unit, CBC Ottawa and ran a pop-up bureau in Kingston. She won a 2021 Canadian Association of Journalists national award for investigative reporting. You can reach her at michelle.allan@cbc.ca.

Australia's Wyloo promises metals hub in bid for Canada's Noront

IMPERIALISM THE HIGHEST STAGE OF CAPITALISM

By Jeff Lewis 

TORONTO (Reuters) - Australian mining billionaire Andrew Forrest's Wyloo Metals on Monday said it would develop a "future metals hub" and study battery material production in Canada as it seeks to clinch a takeover of nickel-copper miner Noront Resources.

Wyloo's planned unsolicited bid for the remaining shares of the Canadian miner values Noront at C$133 million ($110.12 million), or C$0.315 per share. It is Noront's top shareholder, with a 23% stake as of December.

Noront last week said it would look to adopt a poison-pill plan to thwart any takeover.

Wyloo head Luca Giacovazzi declined to comment on the potential for a higher bid, noting the offer is a 91% premium to Noront's share price in December, before Wyloo's initial investment.

"It's a very material premium to shareholders who have had to go through the pains of the Noront story for many years," he told Reuters.

Noront had no immediate comment.

Wyloo said it would commit C$25 million to study the potential to produce chemical products in Ontario province, Canada, for the emerging market for electric vehicle batteries, including the construction of a ferrochrome plant.

It would also target C$100 million in contract awards to First Nation businesses and develop Noront's flagship Eagle's Nest deposit as a net-zero emissions mine, the company said.

Wyloo is a subsidiary of Forrest's Tattarang, one of Australia's largest private investment groups.

Canada in March tightened foreign investment rules in critical minerals, but stopped short of barring the acquisitions of such assets.

(Reporting by Jeff Lewis; editing by Barbara Lewis)

Amid nickel glut, Indonesia’s next president vows to keep ‘downstreaming’ policy

Reuters | March 13, 2024 |

Prabowo Subianto (Image: X)

Indonesia’s incoming president, Prabowo Subianto, has pledged to continue predecessor Joko Widodo’s nickel “downstreaming” policy but faces the task of reducing oversupply while pushing to strengthen the processing industry, his advisers say.


Prabowo, said by independent pollsters to have won the Feb. 14 election, has said he will pursue the effort to extract more value from Indonesia’s vast resource wealth by halting exports of key raw materials and developing domestic processing instead.

The policy drew investments of billions of dollars from smelting firms, most of them Chinese, and boosted Indonesia’s exports.

But it led to an oversupply of processed nickel that caused a drop of 45% in prices last year, squeezing producers in Australia and elsewhere, although they have since recovered to stand up about 12% in 2024.

Experts advising Prabowo are discussing ways to stem a further decline in prices while still generating more jobs and boosting value-addition, members of his campaign team said.

“We must control supply so prices can be underpinned,” Erwin Aksa, a campaign vice-chair, told Reuters, adding that current conditions are likely to drive investors to avoid new projects.

“If there is too much oversupply and those smelters stop their operations, that would impact the whole supply chain,” he added.

Prabowo himself has not publicly detailed his nickel strategy, but told a Feb. 6 rally, “We are determined to guard Indonesia’s wealth. We want to manage and control this wealth, so the value-add can be enjoyed by all Indonesian people.”

Indonesia produced about 1.4 million tons of primary nickel last year, or about 40% of global output, data from the International Nickel Study Group showed.

“Indonesia is flooding the nickel market with low-cost supply, and we don’t think it’s going to stop anytime soon,” said S&P Global Ratings, which predicts the country will add 300,000 metric tons of smelting capacity this year.

S&P Market Intelligence expects the oversupply to continue beyond 2025, as Indonesia has excess capacity for an intermediate product, nickel pig iron (NPI).
Taking stock?

Some of Prabowo’s advisers have called for a moratorium on new smelters, allowing time to take stock of reserves and improve governance.

Last year, a miners’ association warned that reserves of high-grade nickel ore could be depleted in about six years. Recently, a government official said overall nickel ore reserves were sufficient for 30 years.

No decision has been made on a possible moratorium, however, said Eddy Soeparno, another vice-chair of Prabowo’s campaign team, while adding, “It is good to take a pause and give the policy an overview.”

Prabowo will push for further processing of NPI, helping to ease oversupply, said another campaign official, Anggawira, who goes by one name.

The main challenge was building domestic industries to consume the nickel, he said.

“When the nickel is cheaper, that would make our industries more efficient,” added Anggawira, who also chairs the Association of Indonesian Energy, Mineral, and Coal Suppliers.

(By Fransiska Nangoy; Editing by Tony Munroe and Clarence Fernandez)

Wyloo says industry will turn from LME without green nickel

Reuters | March 13, 2024 

Wyloo owner Andrew Forrest. Credit: World Economic Forum

Nickel miner Wyloo, owned by Australian mining magnate Andrew Forrest, said that if the London Metal Exchange (LME) doesn’t launch a green nickel contract, the industry will have to look for another trading venue.


Forrest had told Australian media last month that the LME should classify its contracts into clean and dirty to give customers more choice. Wyloo is set in May to shutter two nickel mines in Australia that it bought last year for $504 million.

The LME said that low carbon nickel, which it classifies as producing 20 tonnes of carbon dioxide or less per tonne of nickel, could already be traded on its partner MetalsHub’s system.

“Wyloo has been contacted by several parties seeking to develop a green nickel premium, so there is clearly demand for greater transparency and differentiation between clean and dirty nickel,” Wyloo CEO Luca Giacovazzi told Reuters.

“As the world’s largest metals exchange, the LME should be leading in this area,” he said.

“If the LME is to continue to set the standard for ethical metal supply practices, it cannot afford to take no action, or the industry will look for an alternative marketplace.”

Calls for a nickel price that reflects strong environmental and governance standards have grown from high-cost producers such as Australia, where low prices have forced miners to shutter operations due to a flood of Indonesian supply, most of which is produced using coal.

(By Melanie Burton; Editing by Michael Perry)

AUSTRALIAN MINERS IN ONTARIO

BHP extends Noront bid deadline amid talks with Wyloo

Cecilia Jamasmie | November 10, 2021 |
The Eagle’s Nest nickel-copper-PGM project in northern Ontario’s Ring of Fire region.

 (Image courtesy of Noront Resources.)

BHP (ASX, LON, NYSE: BHP) has extended the deadline for Noront Resources’ (TSX-V: NOT) investors to accept or refuse its bid from November 16 to the end of the month, as talks with rival Wyloo Metals regarding the imminent takeover of the Canadian miner progress.


“BHP and Wyloo Metals have continued their conversations and are considering a mutually beneficial arrangement regarding the acquisition of Noront by BHP,” the world’s largest miner said in the statement.

It noted there is no guarantee at the time that an agreement with Australian billionaire Andrew Forrest’s Wyloo will be reached.

BHP last month sweetened its all-cash offer for Noront to C$0.75 per share, overtaking Wyloo’s C$0.70, which granted it the Toronto-based miner’s support.

At stake is Noront’s early-stage Eagle’s Nest nickel and copper deposit in the ‘Ring of Fire’ in northern Ontario. The asset has been billed by Wyloo as the largest high-grade nickel discovery in Canada since the Voisey’s Bay nickel find in the eastern province of Newfoundland and Labrador.

Eagle’s Nest is expected to begin commercial production in 2026 with the mine running initially for 11 years.

The mine’s start date has repeatedly been pushed back by Noront due to successive federal and provincial governments’ inability to consult and reach a unanimous agreement with First Nations in the area.
Nickel fever

The tug of war between the two Australian companies is the latest evidence of the rush global miners are in to secure supply of battery metals ahead of an imminent surge in demand for electric vehicles.

Nickel production would need to increase nearly fourfold to meet expected demand for electric and hybrid vehicles, the company estimates. Likewise, copper output would also need to grow exponentially to meet demand from renewable power generation, battery storage, electric vehicles, charging stations and related grid infrastructure.

Tesla boss Elon Musk has expressed worries about a looming nickel shortage. He pleaded with miners last year to produce more nickel, promising a “giant contract” for supply produced efficiently and in an “environmentally sensitive way.”

Last month, the US EV giant inked a multi-year nickel supply deal with New Caledonia’s Prony Resources. The contract guarantees it about 42,000 tonnes of the metal needed to produce the batteries that power its EVs.

Tesla also has a similar agreement with BHP.

Australian Magnate Beats BHP on ‘Superior’ Offer for Canadian Nickel Miner

Yvonne Yue Li
Mon, October 18, 2021



(Bloomberg) -- Canadian miner Noront Resources Ltd. agreed to be acquired by Andrew Forrest’s Wyloo Metals Pty Ltd. in a deal that tops a rival offer from BHP Group.

Noront agreed to Wyloo’s “superior” offer of C$0.70 a share, which represents a 27% premium to BHP’s friendly offer of C$0.55 from July, the Toronto-based company said Monday in a statement. BHP has been given five business days to match the offer from the firm controlled by Forrest, an Australian mining magnate.

Shares of Noront fell 6.2% to C$0.76 at 9:55 a.m. in trading in Toronto.

Wyloo and BHP have been in a bidding war to gain access to Noront’s high-grade Canadian nickel deposits in a largely untapped region of northern Ontario dubbed the Ring of Fire. Mining heavyweights are racing to control more supplies of raw materials that are key to transitioning to low-carbon energy sources. Nickel is one of the key metals used in lithium-ion batteries for electric vehicles.

Wyloo already owned about 24% of Noront’s stock and took further steps last month to lift its stake to 37.3% by swapping convertible debt into common shares. Wyloo said in August that its unsolicited proposal was more likely to succeed because it owns a chunk of Noront shares and doesn’t intend to support BHP’s offer. The deal values Noront at about C$321 million ($259 million), based on approximately 458.5 million shares outstanding as of July 31.

Noront’s main asset is the Eagle’s Nest deposit in Ontario, whose mineral wealth includes nickel, copper, chromite and zinc.

Imperialism, the Highest Stage of Capitalism (crushcapitalism.com)

AUSSIE MINERS FIGHT TO OWN RING OF FIRE
What's to become of Noront's ferrochrome plant? 

Wait for the bidding war to settle, says CEO

Chromite production plans, smelter plan in limbo until new ownership takes control of Noront's Ring of Fire metal assets

IMPERIALISM THE HIGHEST STATE OF CAPITALI$M

By: Ian Ross

Site rendering of Noront Resources' proposed ferrochrome processing 

plant in Sault Ste. Marie


Ask Alan Coutts what's to become of a proposed ferrochrome processing plant for Sault Ste. Marie and the president of Noront Resources gives a straightaway answer.

"That will ultimately be a question that will be answered by the new owners."

Noront selected Sault Ste. Marie in 2019 is its preferred location for a high-tech smelting operation, settling on a brownfield site at Algoma Steel.

But in the last few months, the Toronto mine developer and holder of the most prime mineral property in the James Bay's Ring of Fire mineral belt has become a takeover target by BHP and Wyloo Metals, the former being arguably the world's biggest mining company.

The two Australian rivals are in the early stages of a bidding war for control of Noront and its Eagle's Nest nickel-copper deposit, 500 kilometres northeast of Thunder Bay. It has an 11-year mine life with the real likelihood to extend it to 20 years.

Both companies are looking to preemptively stake their global turf and gain exposure to nickel, which is used in manufacturing lithium-ion batteries for the coming electric vehicle revolution.

Noront's 156,000-hectare land package hosts eight deposits and hundreds of documented occurrences of nickel, copper zinc, platinum, palladium, gold, titanium, vanadium, diamonds and cobalt. Many of these metals are key ingredients needed for the electric vehicle supply chain, battery storage technology, renewable energy, digital technologies, and various applications in health care, aerospace and defence.

But it was the purity and thickness of high-grade chromite, the dark grey metal discovered practically outcropping at surface in 2007, that first drew widespread attention to the region.

Noront's mining batting order has always been to lead off with Eagle's Nest, starting production in mid-2026, before digging into Blackbird, the first of four chromite deposits, and commission that project by 2028. The Sault plant would be built by then and ready to take the chromite feed.

Those timelines remain in limbo with a bidding war underway for Noront.

Noront's logistics plan involves trucking nickel concentrate down a planned 300-kilometre-long road to Nakina in northwestern Ontario and sent by rail to Sudbury for processing.

The chromite would follow the same path to a ferrochrome plant in the Sault.

About 1,000 to 1,500 construction and supply-related jobs would be created in the city, with 500 permanent plant jobs to follow for a facility that would expand as more chromite deposits come into production based on market demand.

The semi-finished ferrochrome material would be barged down the Great Lakes and Mississippi River to stainless steel manufacturers in the U.S.

Coutts mentioned their concept has been well-received by potential American customers. Most of the chrome material used by the U.S. stainless steel industry is imported from South Africa and Kazakhstan.

"We think it's a very good path forward," said Coutts.

"Ultimately, if someone buys the company they can review that and make their own decisions."

Wyloo chief executive Luca Giacovazzi told Northern Ontario Business in early June that chromite was viewed by the company as more of a "longer term opportunity."

"The focus is on nickel."

Though respectful of the work Noront had put in, Giacovazzi couldn't commit to a Sault-based processing plant. Wyloo would need to do its own technical studies to determine the best site, he said.

Wyloo is a subsidiary company of Tattarang, one of Australia's largest private investment groups. Tattarang is headed by billionaire mining magnate Andrew Forrest, who turned Fortescue Metals into the world's fourth largest iron ore producers in Australia's Pilbara region.

BHP Group is the world's largest iron ore miner with operations in Chile, Peru and western Australia. In 2021, the Melbourne-headquartered cleared US$11.3 billion in profit. The company recently established a copper and nickel exploration office in Toronto to be close to Ontario's battery metals scene.

For whichever mining company acquires Noront, don't expect the chromite to be placed on the backburner.

"Wyloo and BHP are excellent world-class companies on bulk materials like iron ore," said Coutts. "Chromite's like that.



"These guys have a ton of experience developing assets like the chrome and the associated infrastructure, and I don't think they'd have any trouble getting their heads around the opportunity.

"It might not be what attracts them in the first place, but I certainly think they'd pay a lot of attention to the (chromite) assets if they became the owners."

In elected to pursue a ferrochrome plant, Noront really stepped beyond the traditional resource development role of a junior mining company by wanting to make the rare leap to becoming a major mining player.

Coutts, a former Falconbridge executive and trained geologist, spoke confidently in past interviews that it was Noront's ambition to become a mine builder. The Ring of Fire, he said, would be their version of the mineral-rich Sudbury basin, with more than 100 years of ore production.

Noront brought Coutts aboard in 2013. He had been involved in exploration, development and operation of mines in Canada and Australia.

His chief development officer, Steve Flewelling, was hired in 2015. He had worked for Falconbridge's successor company, Xstrata Nickel/Glencore, on mining and smelting projects around the world.

Coutts said the processing space is an area they are very comfortable operating in.

"We like the fact that it was a Canadian company developing the assets," said Coutts, who was at the helm when Cliffs Natural Resources exited the Ring of Fire in 2015.

It provided an opportunity for Noront to acquire their claims and consolidate more ground after other exploration companies followed suit, allowing them to become the leading mine developer in the region, albeit with limited financial resources.

Though labelled a junior miner, Coutts said their approach was that it made the most sense, economically, not only to build the mines and produce the ore, but in the case of chromite, it was within their scope to produce an intermediate product to get a value-added lift.

"Certainly, Steve had a ton of experience with the smelting process both in Sudbury and, internationally in New Caledonia."

Coutts said they felt quite comfortable working with Hatch Engineering on the furnace design and the commissioning of a ferrochrome plant down the road.

Whether Coutts and Flewelling stick around under new ownership to see the fruits of their labour come into production remains to be seen.

In a recent interview, Wyloo's Giacovazzi was non-committal in retaining Noront's current senior management, if their bid was accepted by Noront shareholders, saying only the Ring of Fire operating team would be a mixture of new and old faces.

"That's how things work," replied Coutts. "Perhaps there's still a role for us going forward.

"But we would still recommend that path and the approach that we've taken."

It is almost one hundred years since the publication of V. I. Lenin’s Imperialism: The Highest Stage of Capitalism and Nikolai Bukharin’s Imperialism and World Economy,2 written in the midst of the carnage of World War I. Imperialism was written in the first half of 1916 and published in mid-1917; Imperialism and World Economy was not published until several months later, but it was substantially written in 1915 and very likely influenced Lenin’s own thinking, since he read the book in manuscript and wrote an introduction for it in December 1915 supporting its main analysis.

Lenin and Bukharin on imperialism | International ...

isreview.org/issue/100/lenin-and-bukharin-imperialism/index.html

ONTARIO
Post Noront takeover, Wyloo gets to work on Ring of Fire assets

Alisha Hiyate | June 29, 2022 |

The Eagle’s Nest nickel-copper-PGM project in northern Ontario’s Ring of Fire region. (Image courtesy of BHP.)

Wyloo Metals made a big splash last year with its battle against Australian behemoth BHP (NYSE: BHP; LSE: BHP; ASX: BHP) for control of Ring of Fire junior Noront Resources.


The private, Western Australia-based company, owned by Australian billionaire Andrew Forrest’s Tattarang investment group, outlined its vision for Noront’s high-grade nickel-copper-PGM Eagle’s Nest project early on. The miner plans to build a net-zero mine that would process the nickel in-province and create a ‘future metals hub’ while awarding C$100 million ($77.5m) worth of contracts to First Nations-owned businesses and establishing a training and employment centre for northern and Indigenous communities.

And most importantly, perhaps, it promised movement on a project that has been stalled by a lack of infrastructure and by disagreement among First Nations on development, invoking Forrest’s experience as founder of major iron ore producer Fortescue Metals Group (ASX: FMG).

“Seventeen years ago, people told me Fortescue’s deposits would never be mined because there was no infrastructure to access our projects. We proved those critics totally wrong and we want to do the same in the Ring of Fire,“ said Andrew Forrest in a press release last year during the takeover battle for Noront.

After emerging victorious from the “fierce battle” with BHP and closing the acquisition of Noront in April, Wyloo is wasting no time getting to work.
Exploration potential

In early June, the private Australian company reopened the Esker exploration camp in Ontario’s James Bay Lowlands for the first time in three years. The company then began a 3,000-metre drilling program at Blue Jay — the first of 76 targets it intends to drill in the Ring of Fire.

The acquisition includes five existing high-grade orebodies: Eagles nest (nickel-copper-PGMs), McFaulds (copper-zinc) and the Blackbird, Big Daddy and Black Thor chromite deposits.

However, Wyloo CEO Luca Giacovazzi says that although those deposits have potential to be mined, the main attraction of Noront’s Ring of Fire claims was the exploration potential.

“We love the existing mines, but we thought, wow, these guys have just scratched the surface of the exploration potential here,” said Giacovazzi in an exclusive interview at the Prospectors and Developers Association of Canada conference in mid-June.

“Exploration-wise, the Ring of Fire must be one of the most exciting packages of ultramafic rocks in a mining friendly jurisdiction.”

Takeover of Noront Resources approved

Northern Ontario — An Australian company’s bid to take control of what are believed to be large nickel and chromite deposits in the Ring of Fire mineral belt has been accepted by shareholders.

Toronto-based Noront Resources reported late Tuesday that its shareholders “overwhelmingly” voted this week in favour of a bid of $1.10 per share, that had been put forward by Wyloo Metals.

Just over 66 per cent of shareholders who voted had to be in favour of the proposal before it could become effective.

The deal is set to close by April 7, Noront said. It’s not yet clear what the new company will be named.

Wyloo’s final offer came in December following a prolonged bidding war with a rival Australian company — oil, mining and gas giant BHP.

For several years, Noront has been positioning itself to build the first nickel mine in the Ring of Fire located about 550 kilometres northeast of Thunder Bay. The mining of chromite — a main ingredient in stainless steel — was to follow at adjacent deposits.

When Noront found it could no longer finance the projects, it initially recommended its shareholders accept a takeover proposal by BHP.

Wyloo, which already owned a substantial amount of Noront shares, countered with higher offers after it was unable to reach a mutual agreement with BHP.

Mining development in the Ring of Fire isn’t expected to occur until after all-season roads or a rail route have been established for transporting ore.

Carl Clutchey, Local Journalism Initiative Reporter, The Chronicle-Journal

 

Noront Resources

Noront Resources (TSXV: NOT; US-OTC: NOSOF) was the target of a heated takeover contest, won by Australian miner Wyloo Metals last year. A shareholder vote on the takeover is slated for mid-March and the acquisition is expected to close in the first quarter. Noront’s assets are located in Ontario’s Ring of Fire, near James Bay. It holds 100% interests in the Eagle’s Nest high-grade nickel-copper-platinum group metals deposit, the Blackbird chromite discovery, and the Black Thor chromite deposit. It also holds a 70% interest in the Big Daddy chromite deposit and a 100% interest in the Black Label deposit.

Noront Resources’ Esker camp in Ontario’s Ring of Fire. Credit: Noront Resources

With so many riches in the ground, there remains much to be settled about the Ring of Fire — Indigenous participation, rail or road access, economic production decisions, and financing. A ferrochrome production facility is under consideration, perhaps in Sault Ste. Marie, Ont.

Noront has already produced a preliminary economic assessment for the Eagle One deposit (2008), a PEA at McFaulds Lake (2010), a prefeasibility study for Eagle’s Nest (2011), a feasibility study for Eagle’s Nest (2012) and a 43-101 technical report for the Nikka copper-zinc deposit (2020).

The first development in the Ring of Fire will probably be Noront’s Eagle’s Nest project. The feasibility study gave the project an after-tax net present value with an 8% discount rate of C$543 million and an internal rate of return of 28%. A conventional 3,000 tonne per day, blasthole open stope underground mine with paste backfill is planned. Returning the tailings underground as fill means there would be no management facility at surface.

The Eagle’s Nest project has proven and probable reserves of 11.2 million tonnes grading 1.68% nickel, 0.87% copper, 0.89 gram platinum per tonne, and 3.09 grams palladium per tonne. The inferred resource is 9 million tonnes at 1.1% nickel, 1.14% copper, 1.16 grams platinum per tonne, and 3.49 grams palladium per tonne. Production of concentrates containing 34.2 million lb. nickel, 19.2 million lb. copper, 23,470 oz. platinum and 90,022 oz. of palladium annually is planned.

Capital costs were estimated at C$609.4 million with operating costs of C$1.1 billion over the life of the project. The study used metal prices of $9.43 per lb. nickel, $3.60 per lb. copper, $1,600 platinum per ounce, and $599 palladium per ounce.

The decision to begin development on Eagle’s Nest or any other of Noront’s projects in the Ring of Fire is dependent on the new owner.

Noront Resources has a market cap of C$605 million.

TWO AUSSIES 
Mining magnate parrying BHP bid expands stake in nickel miner
Bloomberg News | September 22, 2021 |

Noront Resources Esker camp. (Credit: Noront)

A bidding war for a small Canadian nickel miner is showing no signs of cooling as its largest shareholder, Australian mining magnate Andrew Forrest, took a formal step to increase ownership.


Forrest’s Wyloo Metals Pty Ltd. said it notified Noront Resources Ltd. to swap its $15 million convertible loan for common shares of Noront. That will increase Wyloo’s equity ownership to about 37.3% from 24.2%, according to a statement Wednesday.

Wyloo has offered to buy Noront for C$0.70 per share, beating the C$0.55 offer made by BHP Group in July that Noront’s board agreed to support. Wyloo said last month its proposal is more likely to succeed because it owns a chunk of Noront’s shares and doesn’t intend to support BHP’s offer.

Mining heavyweight are racing to control more supplies of raw materials that are key to the transition to low-carbon energy sources. Noront has been developing one of Canada’s largest potential mineral reserves, in a largely untapped northern Ontario region dubbed the Ring of Fire.

Nickel is one of the key metals used in batteries for electric vehicles.

(By Yvonne Yue Li)

BHP and Noront terminate support agreement

MINING.com Editor | December 24, 2021 | 

Noront Resources Esker Camp (Credit: Noront)

The world’s biggest miner, BHP (ASX, LON, NYSE: BHP), has announced the termination of the support agreement between BHP Lonsdale, its subsidiary BHP Western Mining Resources and Noront Resources (TSXV: NOT) relating to Noront’s support of BHP Lonsdale’s C$0.75 per share offer to acquire Noront, officially ending a long-dragged battle for the Canadian nickel miner.


In accordance with the terms of the Support Agreement, Noront has made a C$17.78 million ($13.8m) termination payment to BHP WMR.

Noront Resources said on Tuesday it has chosen to go with the latest bid put forward by Australian billionaire Andrew Forrest’s Wyloo Metals, giving BHP five business days to match the offer. BHP said later in the day it did not see “adequate long-term value” in raising its C$0.75 a share bid to match Wyloo’s.

The two Australian mining companies had been engaged in a tug of war with competing offers for Noront since July. At stake is the takeover target’s early-stage Eagle’s Nest nickel and copper deposit in the ‘Ring of Fire’ in northern Ontario.

The asset has been billed by Wyloo as the largest high-grade nickel discovery in Canada since the Voisey’s Bay nickel find in the eastern province of Newfoundland and Labrador.

Eagle’s Nest is expected to begin commercial production in 2026 with the mine running initially for 11 years.

The mine’s start date has repeatedly been pushed back by Noront due to successive federal and provincial governments’ inability to consult and reach a unanimous agreement with First Nations in the area.

Forrest, chairman and founder of iron ore producer Fortescue Metals Group (ASX: FMG), plans to lead a new board of directors at Noront.

U.S. military in talks with Canadian miners for key minerals as rivalry with China grows

One of the projects on the Americans' radar is northern Ontario's Ring of Fire

Author of the article:Naimul Karim
Publishing date:Nov 16, 2022 •

Headquartered at the Pentagon in Arlington, Virginia, the U.S. Department of Defense is having discussions with miners about the important role northern Ontario’s Ring of Fire region will play in producing the critical minerals needed by Canada and the U.S. 

PHOTO BY REUTERS/AL DRAGO

The United States military is talking to Canadian miners about potentially funding some critical minerals projects in Canada, the latest evidence of President Joe Biden’s administration’s commitment to cutting its reliance on China for the metals needed to build defence equipment and expand the electric vehicle (EV) market.

One of those projects is in the Ring of Fire region in northern Ontario, which Premier Doug Ford’s government believes has “multi-generational potential” to produce minerals such as nickel and copper that are currently in high demand as countries look to accelerate the shift away from fossil fuels.

“We’ve had initial discussions with the U.S. Department of Defense regarding the important role that northern Ontario’s Ring of Fire region will play in producing the critical minerals needed by Canada and the U.S.,” Luca Giacovazzi, chief executive of Wyloo Metals Pty. Ltd., the Australian company that owns the Eagle’s Nest project in the area, confirmed in a statement.

Ontario is currently working to build an all-season pathway to connect the Ring of Fire with manufacturers in the southern part of the province. The project, which is being advanced with the help of two Indigenous groups, however, has also faced opposition by other First Nations.

Wyloo Metals Pty. Ltd.’s Eagle’s Nest project in the Ring of Fire region in northern Ontario. The deposit contains nickel, copper, platinum and palladium.

 PHOTO BY WYLOO METALS PTY. LTD.

Toronto-based Electra Battery Materials Corp. is another company that has had “preliminary discussions” with the U.S. Department of Defense. In September, the company inked its first “big commercial contract when it signed a deal to supply LG Energy Solution Ltd., a global lithium-ion battery maker, with 7,000 tonnes of cobalt from its Ontario refinery.

Lithium miner Avalon Advanced Materials Inc., based in Toronto, also had talks with the U.S. Department of Defense.

“The capital-intensive nature of our projects and moving them at the requisite speed is a sizeable challenge,” said Zeeshan Syed, the company’s vice-president of external affairs. “Our U.S. colleagues quite clearly understand they may have a role to play to help fortify North America as a dominant player.”

‘A broader strategy’

Aaron Shull, managing director at the Centre for International Governance Innovation, a think-tank, said the American government’s discussions with Canadian miners were “tactically part of a broader strategy” on how Western democracies confront “adversarial authoritarian state actors” such as China, which dominates the EV sector.

Shull was referring to the series of steps taken by the U.S. and Canada to ensure EV production occurs close to home, or at least in places where they wield influence.

In late October, Prime Minister Justin Trudeau’s government raised the bar that foreigners must clear to join Canada’s critical minerals industry, saying any attempt by a state-owned enterprise to purchase assets in the sector can now trigger a section of the Investment Canada Act (ICA) that determines whether deals that could be “injurious to national security” require lengthy reviews.

Days later, Ottawa ordered three Chinese companies to divest their investments in three Canadian junior lithium miners.

China dominates

Washington’s recently passed Inflation Reduction Act (IRA) offers a US$7,500 subsidy meant to encourage the production of EVs in North America, while Deputy Prime Minister Chrystia Freeland used a series of speeches this fall to stress the need for “friendshoring,” an idea that would see democratic allies build supply chains through each other’s economies and tackle the influence of authoritarian regimes in the energy sector.

China dominates the EV supply chain through its refining and processing industries even though most of the metals required by EVs, such as lithium, nickel and cobalt, are mined outside the country.

Patricia Mohr, an economist and former vice-president at Bank of Nova Scotia, said that the competition with China “is growing for these important metals.” She added that Canada had a “big advantage” when it comes to nickel, noting the geology of the U.S. isn’t “prospective” for the metal.

“Furthermore, most nickel deposits in Canada involve sulphide ore which will have a much lower carbon footprint than the lateritic projects in Indonesia, mostly developed with coal-fired power,” Mohr said.

The U.S. Department of Defense wasn’t immediately available for a comment. According to the CBC, an official from the department confirmed that Canadian projects would qualify for an investment from the U.S. military while speaking at a conference.

• Email: nkarim@postmedia.com | Twitter: naimonthefield

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In conversation with Neskantaga Chief Chris Moonias as Ring of Fire concerns abound

The Canadian Press
Tue, October 10, 2023 


NESKANTAGA FIRST NATION, ONT. — On the shores of Attawapiskat Lake, deep in the Ring of Fire region in northern Ontario, sits Neskantaga First Nation – a community of about 350 people that can only be accessed by plane or an ice road in the winter.

Many residents, who have for years dealt with challenges including a longstanding boil-water advisory and a shortage of adequate housing, are concerned that Ontario's desire to mine metals from the Ring of Fire could threaten Neskantaga's way of life.

The First Nation's chief, Chris Moonias, wants to meet with Premier Doug Ford to discuss his community's concerns, although that has not happened. From his office in Neskantaga, where a large, orange Every Child Matters flag with his First Nation's insignia hangs on a wall, Moonias sits down with The Canadian Press to share his thoughts.

What is Neskantaga’s position on the proposal to mine the Ring of Fire?

Neskantaga is a pro-development community. We're not saying right out no. We just want to be part of it. We want to have jurisdiction into the area and before anything happens in our territory, in our homeland. We want to be part of the decision making. We have to know what the real benefits are and we have to know what the real impacts are.

Will Neskantaga say yes to mining?

Not at this time because we're not full participants. Everything is being done according to what Ontario wants. Everything was being pushed during the pandemic, this free-entry mining. It's like we don’t have a say at all and that doesn’t sit well with the First Nation.

Do you hope Doug Ford and his government will change their approach?

Not the way they’re acting now. But I hope that some day, maybe the investors will force Doug Ford to act accordingly for a First Nation’s full participation.

What about the promise of prosperity and jobs?

Jobs is a given, it’s easy to get jobs in any development. It’s automatic to get jobs. We’ve had mining in and around northwestern Ontario. You don’t see these First Nations prosper, many boil-water advisories, a lot of poverty. We got to be careful We're always told we'll get jobs, you will get this, you will get that, but nothing happens. That’s why we haven’t been able to really support what’s going on with the Ring of Fire. There are promises of prosperity, sure. We’ve been promised that many times before. It's the rich getting richer. Once they’ve extracted the resources, we’re still out there with boil-water advisories, we’re still in a housing crisis, we’re still in a social crisis. It doesn’t benefit communities as of right now.

— This conversation has been edited and condensed.

This report by The Canadian Press was first published Oct. 10, 2023.

Liam Casey, The Canadian Press

Image

Ontario’s Ring of Fire | ontario.ca

'We want to be able to decide': Inside the battle over the Ring of Fire

The Canadian Press
Tue, October 10, 2023 

NESKANTAGA FIRST NATION, ONT. — On a rock-covered beach in the heart of the Ring of Fire in northern Ontario, Alex Moonias gazes east, then north. All he sees is undisturbed land, water and air.

Some 100kilometres from where he stands, the province plans to build a road as part of its pledge to mine the area, which is said to be rich in metals needed for electric vehicle batteries.

Moonias, an elder from Neskantaga First Nation, and many in his community see the provincial government's ambitions for the Ring of Fire as an existential threat to their way of life.

"Mother Earth is hurting," the 70-year-old says. "If a big needle is pushing into your body, how would you feel?"

The survivor of a residential school and, later, alcohol addiction, has heard government promises of prosperity related to developing the territory before. And he's not convinced.

"The government has to come and see the land, or at least spend time with us," he says, breathing in the morning air as water laps the rocky shoreline. "The gift the Creator gave us is to protect the land."

Neskantaga's leadership is not completely opposed to mining in the Ring of Fire, a 5,000-square-kilometre area about 500 kilometres northeast of Thunder Bay, Ont. But they are dead set against the way the province has gone about it, saying the government has not properly involved them.

"We're not saying outright no, we just want to be part of it," Chief Chris Moonias says.

"Before anything happens, we want to be able to decide. We have to know what the real benefits are and we have to know what the real impacts are."

Premier Doug Ford has made mining the Ring of Fire a key priority as part of his goal to build an end-to-end electric vehicle manufacturing chain in Ontario.

The province and federal government have together committed billions to deals inked with auto giants Volkswagen and Stellantis to build EV battery plants in southern Ontario. In Ford's vision, the metals supplying those plants would come from northern Ontario and head south for refining and processing.

The province considers nine First Nations to be within the Ring of Fire.

Two of those First Nations – Webequie and Marten Falls – are leading an environmental assessment on a proposed road to the Ring of Fire. While other First Nations say they respect Webequie and Marten Falls' position, they also say the province is employing what they call a colonial divide-and-conquer tactic.

In Neskantaga, Chief Moonias says the premier has yet to reach out directly to the community to discuss plans for the Ring of Fire. Government promises of prosperity ring hollow, he says.

Neskantaga has been under a boil-water advisory for more than 28 years – the longest continuous boil-water advisory in the country, which only the community’s leadership decides when to lift. There's also a housing crisis — the fly-in community of about 350 people needs at least 100 more houses and many live in cramped conditions.

The community has no high school, meaning children have to leave at 13 or 14 years old for education. There is no doctor in the community and its nursing station faces constant staffing shortages.

A state of emergency declared in 2013 over a rash of suicides remains in place. Opioids are an emerging worry, while alcohol still finds its way inside the dry reserve.

Prosperity, the chief says, would have to come in the form of tangible improvements.

It means a high school in the community, he says. It means clean drinking water, good jobs, a paved airport runway that would allow bigger planes in and better access to doctors and nurses.

COMMUNITY CONCERNS

Outside a home for elders, George Sakanee fiddles with a new metal detector. He loves hunting for metallic rocks. Out of one pocket comes a few stones. He pulls a magnet out of his other pocket. A shiny black rock gets pulled to the magnet.

"There's a lot of metal around here," he says with a smile.

He recounts a story about another elder who performed a ceremony that connected him to the spiritual world deep inside the Ring of Fire.

"The Ring of Fire is a gift from the Creator to the Indian people," he says the elder told him.

"But Doug Ford wants all of it now and what will we be left with?"

An all-weather road to a mining development, if it's ever built, also presents concerns. There are plans for several water crossings, including a bridge over the Attawapiskat River.

"They will contaminate the water and we could lose a lot of our fish," says Ryan Moonias, who lives in Thunder Bay with his young family but returned to Neskantaga for its annual summer festival.

"I worked in a mine before, I know what can be left behind, sometimes they screw up, or there are accidents and spills. It could mess up our environment, screw up our hunting grounds and trap lines."

For Roy Moonias, the road itself is an issue.

"Who owns that road? Will there be Ontario police on that road? What else comes with that road, more drugs and alcohol?" he says.

"Building a road into our territory will cause changes and we're obviously really worried about that."

MARTEN FALLS

About 150 kilometres southeast lies Marten Falls First Nation, which is taking a different approach.

It is working on two possible road projects. One is an access road that will connect it with the provincial highway system to the south. The First Nation is leading an environmental assessment that should be complete in two years, says Chief Bruce Achneepineskum.

"That access road would provide for better lives in our community because we would have 24-hour transportation to another community for health reasons, or for education, employment and training, and the list goes on," he says.

The second project is the so-called "Northern Road Link" that would lead to a proposed Ring of Fire mining site known as Eagle's Nest, owned by Wyloo, an Australian-based mining giant controlled by billionaire Andrew Forrest.

Marten Falls and Webequie First Nation are leading the road's required provincial environmental assessment, which Achneepineskum says will not be complete until 2026.

He emphasizes that helping lead the environmental assessment is not a tacit approval to mine the region.

"We felt strongly that we should take the lead in any development happening in our territory," Achneepineskum says.

"But first we want to address the social conditions and economic conditions in our community. These issues are being ignored."

Marten Falls has been under a boil-water advisory for 17 years, so fixing the water problems is paramount, the chief says. The community also needs more housing and better health care.

Marten Falls hopes the proposed road to the provincial highway system will help address those issues, the chief says. The road to the Ring of Fire comes a distant second in priority, he says.

The chief feels, however, that Marten Falls is being held back by other First Nations who disagree with his community's approach.

"This is a new form of paternalism, but now it seems to be coming from our Indigenous brothers and sisters," he says. "Do we have to give up our vision because we have not agreed to a collective approach?"

THE GOVERNMENT VIEW

On a recent afternoon, three Ontario ministers were ebullient when discussing the creation of an end-to-end electric vehicle battery manufacturing chain.

The province is coming off two big — and expensive — wins in service of that goal by landing, with Ottawa, deals with Volkswagen and Stellantis for electric vehicle battery plants in southern Ontario.

Greg Rickford, who runs two ministries — northern development and Indigenous affairs — along with Mining Minister George Pirie and Economic Development Minister Vic Fedeli say all of northern Ontario holds the key to economic growth across the province.

"This is a generational opportunity to transform our economy," Pirie, a former gold mining executive, says.

With development comes a host of jobs, they say, including engineering, architectural, accounting and legal work. There will also be jobs in mines and need for heavy equipment operators, among others.

The ministers believe the development will spur socio-economic change within northern Ontario First Nations. And, of course, be crucial to Ontario's plans to become an EV battery powerhouse.

Rickford, who spends a lot of his time talking to chiefs across northern Ontario including Neskantaga's leader, believes the government can reach agreement with the opposing First Nations.

"We have lots of talks off-line around some of the things that (Neskantaga) needs to move forward," he says. "If we focus on those common interests around legacy infrastructure and keep it keep it pretty simple, we have a clear path."

The province has recommitted $1 billion to develop the Ring of Fire, like the previous Liberal government before it. Ontario has repeatedly asked the federal government to match the funds, which it has thus far not done.

Ottawa wants to develop a domestic source of critical minerals, but it believes many other mining projects across the country are closer to realization.

"We are going to focus very much on expediting the development of Canadian resources," says Energy and Natural Resources Minister Jonathan Wilkinson.

"We will only develop minerals in a manner that is sustainable and respects the rights of Indigenous peoples."

MINING PROSPECTS

In downtown Toronto, Kristan Straub, the Canada CEO of Wyloo, shows off a model of what the underground area that could be explored at the company's site in the Ring of Fire might look like. The mine would be three times as deep as the CN Tower is tall — possibly deeper.

Wyloo is performing exploratory drilling at its Eagle's Nest site and completing a variety of engineering studies. It has also made a commitment to bury 100 per cent of any mine tailings underground in a process Straub says is safe.

In 2007, nickel, copper and platinum metal deposits were discovered at the site. Nickel is a key component of electric vehicle batteries, accounting for roughly 80 per cent of one, says Straub, who came to the company in the spring.

Eagle's Nest – if and when it becomes operational – could produce upwards of 15,000 tons of nickel annually.

"Our goal today is to be in a position where we're ready for construction in four years by 2027, and that would see us in production for 2030," he says.

Wyloo forecasts a 12-year mine life with a possible eight-year extension, he says.

The majority of nickel currently mined in Ontario is exported, Straub says. With the coming Volkswagen and Stellantis plants, the need for nickel in the province will skyrocket.

"Is Eagle's Nest going to supply Ontario's new battery electric vehicle market?" he says. "No. It's going to take, roughly by our calculations, probably close to 25 to 30 new Eagle's Nests."

For any of that to work, the company needs a road to haul out the metals it extracts. And it needs collaboration with First Nations, he says.

Straub, from Henvey Inlet First Nation south of Sudbury, Ont., understands better than most the needs of Indigenous communities. The company is in direct talks with some First Nations, he says.

Wyloo has pledged at least $100-million worth of contracts for Indigenous companies. They've also established a fund to invest in First Nation communities' priorities, focusing on health care and education.

"Certain First Nations are going to either highlight that they have a problem or they want us to stop," Straub says.

"Our ask back to the government and to the other First Nations is that while we respect your opinion, that we don't get stopped in terms of the exploration work or the engineering work."

Individuals and companies can stake mining claims for a small fee in Ontario. There are more than 28,000 mining claims held by 14 companies and individuals in the Ring of Fire, the province said.

Last week, several First Nation leaders, including Neskantaga's chief, protested Ontario's Ring of Fire plans at the legislature. Four First Nations outside the Ring of Fire have pledged to support Neskantaga in a group they've called the Land Defence Alliance.

Chief Rudy Turtle of Grassy Narrows First Nation, which is part of the alliance, does not want mining, logging or any development in his territory — or in any others.

In the 1960s and '70s, two paper mills dumped thousands of kilograms of mercury into a river upstream of Grassy Narrows.

Researchers have reported that more than 90 per cent of the residents in Grassy Narrows and the Wabaseemoong First Nation show signs of mercury poisoning, including Turtle. He lives with seizures, the shakes and co-ordination problems.

"What I'm seeing is it's nothing more than a divide-and-conquer tactic," Turtle says. "It's led to tragedy in the past, and that's how I see it right now."

— with files from Mia Rabson in Ottawa.

This report by The Canadian Press was first published Oct. 10, 2023.

Liam Casey, The Canadian Press