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Ontarios governing Liberals say theyre willing to put up $1-billion to develop an all-season transportation corridor to the Ring of Fire if the federal Conservatives match the funds.

Ottawa must help bear the cost of building the infrastructure thats needed to develop the mineral-rich region, create jobs and boost northern Ontarios hard-hit economy, they said Monday.

We are coming to the table with our best offer and we need the prime minister and his team to join us there, said Michael Gravelle, Ontarios minister of northern development and mines.

The province has maintained that the Harper Conservatives should be actively involved in the Ring of Fires development as they have for other projects, such as the Alberta oilsands.

The Ontario Chamber of Commerce has estimated that the project could generate $9.4-billion in new economic activity over the next decade and support 5,500 jobs a year.

It said it would also provide the federal, Ontario and municipal governments with almost $2-billion in revenue over that period and $6.7-billion over 32 years.

But the lack of a transportation route has been a major barrier to developing the Ring of Fire about 500 kilometres northeast of Thunder Bay, Ont. which is believed to contain one of the largest chromite deposits in the world.

The project suffered a major setback last November, when a big mining company that was going to pour $3-billion into the Ring of Fire suddenly pulled out.

Cliffs Natural Resources Inc. suspended its operations indefinitely, saying it couldnt keep spending money while the question of whether it would be able to build an all-weather road to the remote site remained in doubt.

Noront Resources Ltd., which wants to develop its Eagles Nest and Blackbird mining projects, said the provinces commitment is a vital milestone that will benefit remote First Nations communities.

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Ontario pledges $1-billion for Ring of Fire