A company interested in the chromite deposits in the James Bay Lowlands is teaming up with China Rail to do a feasibility study.

Moe Lavigne, vice-president of KWG Resources, says KWG has signed a deal with China Rail to look at building a transportation corridor to handle ore and other potential mining operations in the Ring of Fire.

The chromite operations in the region will not be economical unless the materials are hauled out of there in the cheapest possible way "and that's by rail," Lavigne said.

"The importance of this announcement is that it could be the first domino in the series of dominoes that would lead to an agreement with China to deliver chromite from the Ring of Fire," he said.

Lavigne says a blueprint for financing the work will be part of the deal.

The mineral claims traverse the traditional territory of the Aroland and Marten Falls First Nations.

KWG says the interests of these First Nations — and their Matawa Tribal Council neighbours — are expected to be negotiated as part of this process.