It is reported that USD 335 million loan guarantee is kick starting a series of mining developments in and around Atikokan that could mean a big economic boost for Northwestern Ontario.

As per report, Bending Lake Iron Group announced the funding recently.

Mr Henry Wetelainen company president and CEO said the money will be used to develop an iron ore processing plant in Atikokan. The plant will make merchant pig iron, which will be sold back to the United States. Essentially, it allows Bending Lake Iron Group to start producing a product and a cash flow.

He said that at the same time, the company is working through the process that will allow it to open an iron mine at Bending Lake about 80 kilometers north of Atikokan a process which will be aided by the financing.

Mr Wetelainen said “This will start a new generation of producing merchant pig iron in Northern Ontario. Ontario used to have five operating iron mines; we have none. We buy all of our iron ore from either Minnesota or Quebec. He said that “I think it‘s time that we start to support our own industry and our own jobs in the North.”

Mr Wetelainen said the first phase, the processing plant, will mean 200 construction jobs over two years. The mine would employ hundreds more during construction and over its projected 35 to 70-year lifespan.

Mr Dennis Brown Atikokan Mayor who was at Bending Lake Iron Group‘s Thunder Bay office for Thursday announcement said securing the financing was a mammoth step.

He said that “This is something we‘ve been waiting on for quite some time. This is huge. And while he said the project will provide an economic boost to the region and government word was that the mine will pay billions in taxes to the federal and provincial governments over its lifespan the town of Atikokan could see particularly good things come of it.

Mr Dennis Brown said “At one time, Atikokan had 7,000 people that lived there. Now we are down to about 3,400 and I‘m sure that if this happened, this would double the size of the community. There would be no unemployment anybody that wanted to work would have a job. There‘d be a great tax base for the community.”

He added that “This should be a no brainer. I am not there asking for them to finance this in any way shape or form.”

Mr Wetelainen said Bending Lake Iron Group has submitted a project description, and government officials said they want to study it further. The project description was submitted about six months ago, although the company has been working on the project and securing financing for three years.

He said that “I‘d prefer to build this plant in Ontario. I would like to build it in Northern Ontario. Atikokan is by far the best site. I would like the approval as quickly as possible.”

Mr Michael Gravelle Northern Development, Mines and Forestry Minister said he‘s excited that the company has landed the financing, and he‘s met with Wetelainen and members of the board, as well as Brown.

He said that “I think there is still some work to be done related to permitting. Issues related to the Ministry of the Environment and Ministry of Natural Resources. Once I heard the news, my first thought was that I will be in touch immediately with those ministries to see where the applications are at and to encourage this process to move forward.”

Assuming things go well, Mr Wetelainen said the company could be breaking ground on the processing plant in the fall, and the mine could be through the permitting process in 18 months.

(Sourced from http://www.chroniclejournal.com)