This day, culminating ten years of planning and preparation, has been long-awaited - I can hardly believe that it has finally arrived. For those of us who were connected with this project at its inception, it is really a dream come true. I can assure you it is a thrilling day in my life, and I am most happy to be sharing this experience with Caland Ore Company's friends, associates, and neighbours. Here today, what was only a small lake a decade ago, has been dedicated as a large productive iron ore mine.

I am sure you will interested to learn why Inland Steel Company came to Canada for iron ore. It has been our policy, ever since the company started making iron back in 1907, to produce a substantial portion of our iron ore requirements from our own mines - and to build and maintain adequate ore reserves, as insurance and protection for the future. Quite naturally, Inland's first ore acquisitions were in the Lake Superior District of the United States. The various iron ranges in that district had been well explored, and there were many opportunities to lease or purchase good ore properties. These areas were accessible through low-cost rail and water transportation for the delivery of the raw material to our steel plant at the southern end of Lake Michigan, and served as Inland'a main source of iron ore for the first fifty years.

In the late 1940's, as Inland Steel's productive capacity kept increasing, and with expected further expansion, we believed that we should further strengthen our reserve position in iron ore. We wanted to acquire a large new ore property - one that would not have to be brought into production immediately - one that could be operated at a high rate of production - one that contained a sizeable reserve of good quality ore - and one that was well located for transportation of the ore to our furnaces. Consideration was given first to the districts with which we were familiar, but our search did not disclose a property which exactly met our specifications. With the knowledge that the attitude and climate were favorable to mining ventures in our neighbor country to the north, our eyes turned in this direction in the hope that we could find an attractive property in the vast unexplored regions of this country.

Steep Rock Area Recommended

The Steep Rock Lake area came to our attention in 1949 purely by accident. Mr. Clarence B. Randall, who was president of our company at that time, was in Toronto to talk to a friend who previously had been identified with the mining business. Unbeknown to him, a luncheon of Canadian mining officials had been arranged in his honor, and Mr. Randall found himself seated next to the then Minister of Mines of the Province of Ontario. He took advantage of the opportunity to discuss the development of mining in Canada as well as unexplored districts that appeared to have good potential. The Minister mentioned that the area around Strawhat Lake, about two miles from Atikokan, offered excellent possibilities, in his judgement. That chance remark aroused Mr. Randall's interest, and upon further inquiry he learned that the eminent geologist, Mr. Hugh Roberts, was best informed about that particular locality.

Mr. Ralph Archibald, our consulting geologist, and Mr. Alfred J. Cayia, our general manager of mines, immediately contacted Mr. Roberts and at their very first meeting, he suggested the possibility that a portion of the acreage of Steep Rock Iron Mines Ltd. could be leased for an independent operation. In his opinion, the Steep Rock Lake area offered infinitely better prospects for a large ore body than did Strawhat Lake. And so our interest turned towards Steep Rock Lake.

Project Started in 1950

From this point on, we moved just as rapidly as possible. During the last few days of 1949, negotiations were completed with Steep Rock Iron Mines Ltd. for an option to lease about 1,000 acres of their lands comprising the Falls Bay area, and by mid-January of 1950, drills were beginning to explore for iron ore through the frozen surface of the lake. Three successive winter drilling campaigns were required to obtain needed information about the ore deposit, and by 1952, we concluded that we had sufficient proof of an extensive ore body containing high grade ore which could be mined economically, and which would justify the large investment necessary for its development. Accordingly, Inland exercised its option to lease the property for a 99-year period commencing January 1, 1953.

Then began the monumental task of developing the property. I will not go into all of the details of the development work, except to say that during a period of five years, 160 million yards of silt have been removed from the lake bottom, tributary lakes have been drained and stream courses changed, surface drainage has been brought under control, an open pit mine is in operation and an underground mine is partially developed. The successful completion of this mammoth project, within the originally established time schedule, has required extremely careful planning, a very high degree of engineering ability, and skillful administration.

Employment to Reach 1,200

It is my hope and belief that the large sums invested here have been, and will continue to be, a substantial contribution to the economic well-being of the Province of Ontario and of Canada. Since 1955, an average of 300 men have been employed in the various phases of development and construction. Employment will be increasing each year as the underground mine becomes more fully developed, and by 1970 we expect to be employing about 1,200 men. Expenditures amounting to $52 million for both payroll and equipment have been made to this date, and $14 million is still to be added to the capital program which will eventually total $66 million. As we entre the operating stage, our parent company, Inland Steel Company, will continue to send funds to Canada through the purchase of ore from Caland. After allowance for the repayment of dividends, many millions of dollars will remain in Canada at an increasing rate as production is stepped up to higher levels. Surely the Province and Canada will benefit and share with us the fruits of this mining operation.

Steady Operations, Stable Community

Possibly some of you may be wondering just how the Caland operation fits into the Inland Steel picture. The answer to this question is quite simple. The Caland operation will, in time, be our largest single source of iron ore supply, eventually furnishing as much as one-third of Inland's annual iron ore requirements. Actually, Caland will be entirely dependent upon Inland as its sole customer, and as Inland operates, so will Caland operate. In the last 10 years, the operations of Inland Steel have averaged better than 90 per cent of its rated capacity. If we come even close to maintaining this record, our Caland mines will be given good operating schedules which will mean steady employment for our people and stability to the community. With a strong parent, the outlook for Caland is bright.

Steep Rock Lead the Way

As has already been said, our relationship with Steep Rock Iron Mines Ltd., has been most satisfactory and helpful. In reviewing our accomplishments in the development of the Falls Bay area, we must not forget that 10 years earlier the Steep Rock company devised and executed the ingenious diversion scheme which by-passed the entire flow of the Seine River and laid the groundwork for Caland's operations. We have followed in their footsteps - profited by their experience. Our negotiations for the lease were conducted in a most pleasant atmosphere and our relationship ever since has been most cordial. During the entire development period, we have been extended the most friendly cooperation, which has been invaluable to us in solving some of our problems and for which we are most grateful. As the lessor, the Steep Rock company will be receiving its share of the value of the property through royalty income, thus enhancing the value of its interest. I can assure the officials of that company that we will do everything in our power to operate our mines in as efficient a manner as possible and that we will conduct ourselves as good neighbours and citizens for the benefit of this entire mining community.

Our mining operation stands as a monument to the engineering genius and administrative skills of many people. But I can only pay tribute this evening to a few of the key people who were responsible for this development. First to Alfred J. Cayia who was the first general manager of Caland and who planned and supervised the development until his retirement from active service in 1957, and next to Ray D. Satterley, under whose fine leadership the development has been completed. Then there are the two men who have been in charge of day-to-day operations, Philip D. Pearson and Peter P. Ribotto. And Bud Whitman who, as chief engineer, seemed to do the impossible at times to accomplish his goal. There are those other key people who played such important roles in the development of the project, Keith Busby, Warren Peterson, Sam Reipas, Nat Scott, Owen Boland, and Waldo Cummings. To all of them and to our entire staff, I express our most sincere gratitude and appreciation for a job well done. We are extremely proud of your accomplishments and you should be too.

Grateful for Help

And may I take this opportunity to express our appreciation to the contractors whom we called upon to do specialized work in connection with our development program. The Construction Aggregates Corporation has done a truly outstanding job in dredging the silt from the lake bottom in a most efficient manner and exactly on schedule. Patrick Harrison and Company, Dominion Bridge Company, Barnett-McQueen Company, Fenco, and others have all performed their work to our complete satisfaction. To all of these companies, we are indeed grateful for their contributions to the project.

Hope for Long, Healthy Life

The ceremony this afternoon and the dinner this evening have been held to celebrate the commencement of operations of Caland Ore Company. This day will always be remembered as an important milestone in its history. As we look to the future, we do so with confidence and pride that this will be one of the outstanding mining ventures of our generation. I express the wish that its life will be long and healthy, and that it will make an everlasting contribution to the steel industry of North America and to the welfare and prosperity of the Province of Ontario and the people of Canada.