Ring of Fire Metals, Webequie First Nation ink MOU on Eagle’s Nest nickel project

Ring of Fire Metals (formerly Noront Resources) and Webequie First Nation have signed a memorandum of understanding (MOU) outlining a framework for collaboration on proposed development in northern Ontario.

Wyloo Metals earlier in the year acquired Noront Resources and its mining assets in Ontario’s emerging metals camp known as the Ring of Fire, and chose Ring of Fire Metals as the new name for its Canada-based business as exploration activities begin in the area.

Its primary asset is the early-stage Eagle’s Nest project, which has been billed by Wyloo as the largest high-grade nickel discovery in Canada since the Voisey’s Bay nickel find in Labrador. 

The MOU details how the two parties will work together to progress ongoing exploration activity in the region as well as negotiations on a partnership agreement for the proposed Eagle’s Nest mine, located about 500 km northeast of Thunder Bay. 

“We are exercising our sovereignty and the right to pursue economic sustenance in a manner that respects the land and brings opportunity for our young people,” Webequie Chief Cornelius Wabasse, said in a media statement on Tuesday. 

“Our community encourages ongoing working relationships with Ontario and the federal government, including First Nations, to work with us and support our community initiatives,” Chief Wabasse said.

Ring of Fire Metals CEO Stephen Flewelling said the landmark MOU was an important step forward in their long-standing relationship of more than 12 years.

“We have worked well with Webequie for many years, but this MOU signifies a formal transition to a new phase of collaboration on the future of the Ring of Fire,” he said.

“Canada has a once-in-a-generation opportunity to develop the critical minerals the world needs to decarbonize, and it’s vital that Indigenous communities play a central role in how these projects are developed on their traditional territories.

“This MOU…reflects our approach to developing critical mineral projects that deliver mutual, long-term benefits for Webequie community members with a deep respect for their culture and land,” Flewelling said.

One of the largest undeveloped, high-grade nickel-copper-platinum-palladium deposits in the world, the mine is scheduled to begin commercial production in 2026 with an 11-year mine life at an estimated cost of US$609 million, according to a 2012 feasibility study. It has the potential for a nine-year extension. 

Proven and probable reserves are 11.1 million tonnes grading 1.68% nickel, 0.87% copper, 0.87 gram platinum per tonne, 3.09 grams palladium and 0.18 gram gold.  

Questions over project

However, development of the Ring of Fire faces opposition from some Indigenous communities in the region, such as the Neskantaga First Nation and several James Bay communities such as Attawapiskat. 

And in November, a senior official with Natural Resources Canada told the leadership of Neskantaga that it’s possible no mines would be developed in the remote area and there was no guarantee the federal government would provide needed financing, The Globe and Mail reported on Nov. 29.

Building the mines would also involve constructing roads through the remote, muskeg-filled James Bay Lowlands where communities must be reached by airplane.

The provincial government remains supportive of developing the critical minerals projects, with Mines Minister George Pirie saying last month he plans to consider slashing project red tape and encourage more federal investment in the Ring of Fire. 

Despite Ottawa announcing its $3.8-billion critical minerals strategy in April, it’s unclear how much of it will be directed to Ontario and the Ring of Fire area, Pirie said.