The government of the Canadian province of Ontario has signed an agreement with the Webequie First Nation to accelerate the construction of the Ring of Fire Road in the province. This decision and the subsequent construction of the road will also benefit PTX Metals Inc. (CSE: PTX, FSE: 9PX, WKN: A0MVNG) in the medium term, as logistics for access, including to the South Timmins Mining Joint Venture, will be significantly improved.
The Webequie First Nation are the Indigenous people of the country, native to northern Ontario. The agreement signed by them and the provincial government stipulates that the Government of Ontario will spend approximately 40 million Canadian Dollars (CAD) to build a community center and an arena on Indigenous land.
The regional airport terminal, which recently burned down, is also to be rebuilt. Concurrently, the equipment and materials necessary for the construction of a road to the mineral-rich Ring of Fire are to be procured, so that initial work on the new road connection can begin soon.
A Permanent Road Will Break the Isolation of the Webequie First Nation
Cornelius Wabasse, Chief of the Webequie First Nation, emphasized that the agreement will provide much-needed mental health resources and further support for his community. He therefore sees the new permanent road to be built as an opportunity for his relatively isolated community.
Currently, the community can only be reached in winter via a newly constructed ice road each year, and otherwise only by air. Two further proposed roads are currently being discussed. They would connect the Webequie First Nation to the provincial highway system, which currently ends hundreds of kilometers further south.
On behalf of the provincial government, Premier Doug Ford stated that construction of the road could begin as early as next June. While federal government approval is needed to waive the otherwise necessary assessment of the road’s impacts, this is very likely, as the assessment would only repeat the work already undertaken by the Webequie First Nation as part of an almost complete environmental review.
PTX Metals and all Companies Operating in the Region Will Benefit Significantly
If the recently concluded agreement is implemented as planned in the coming years, not only will the Webequie Indigenous people benefit from improved access to Ontario’s road infrastructure. Mining companies and mine developers operating in the resource-rich Ring of Fire, such as PTX Metals, will also benefit significantly in the medium term, as the same applies to them as to the Indigenous people.
Many of their projects can currently only be reached during the cold season via newly constructed ice roads each year. Year-round secured access to the projects not only strengthens logistics but will also significantly contribute to reducing costs. Once the planned road connections are completed, year-round work on the respective projects will also be possible.
What this could mean for companies like PTX Metals is illustrated by a quick look at drilling costs. These are approximately CAD 250 per meter drilled during the winter months. In the summer months, when heavy drilling equipment, drilling crews, and their necessary equipment can only be transported by helicopter, drilling costs can easily rise to up to CAD 1,000 per meter drilled.
Therefore, with the improved infrastructure, the development of resource projects in Ontario can not only be advanced year-round in the future, but companies can also drill significantly more with the same money than is currently possible under existing circumstances.
Therefore, the news of the successful agreement is very welcome not only for the Webequie First Nation but also for PTX Metals and the other companies operating in the region.
