MINING.COM

Canada to Unlock Critical Minerals Development in Northern Ontario with New Funding

Monday, October 7, 2024 12:10 PM PDT

THUNDER BAY, ON, Oct. 7, 2024 /CNW/ - Investments in critical minerals infrastructure are essential to enable Canada to seize the enormous economic opportunity the low-carbon economy presents and to capitalize on our rich mineral resources. Canada is well positioned to be a global leader and a first-class producer of a wide variety of critical minerals that are essential to power the clean economy — including lithium and copper — and, in turn, create good jobs and support economic opportunities across critical mineral value chains — from mining to processing, manufacturing and recycling.

Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, along with the Honourable Patty Hajdu, Minister of Indigenous Services and the Federal Economic Development Agency for Northern Ontario and the Federal Economic Development Agency for Northern Ontario, and Marcus Powlowski, Member of Parliament for Thunder Bay, announced up to $13.8 million in funding, pending final due diligence from Natural Resources Canada, for five critical minerals infrastructure developments in Northwestern Ontario. This funding would be provided through the Critical Minerals Infrastructure Fund (CMIF).

This investment would include:

$5.5 million to Green TM Resources Canada Ltd. to upgrade 112 kilometres of existing roads and replace three bridges to support the development of a lithium mine near Armstrong, Ontario, and bypass residential communities.
$1.4 million to Rock Tech Lithium Inc. to upgrade and extend a 10-kilometre access road north of Nipigon, Ontario, that would enable the transportation of lithium from its Georgia Lake Project mine site, an open pit and underground mine.
$6.1 million to Frontier Lithium Inc. to advance Indigenous engagement and engineering for a 56- kilometre all-season road and electricity infrastructure for the Pakeagama (PAK) Lithium Project in Northwestern Ontario.
$771,100 to Generation PGM Inc. to undertake an engineering and design work for a five-kilometre access road, as well as feasibility studies for additional road and rail links to support the movement of copper concentrates from its Marathon Project to smelters and refiners.

The CMIF is a key program under the Canadian Critical Minerals Strategy to address infrastructure gaps, enable critical minerals production and connect resources to markets through various clean energy, electrification and transportation infrastructure projects. Additional funding decisions for projects under the CMIF to further critical minerals infrastructure development are expected in the coming months.

These new critical minerals projects, alongside investments in clean energy and nuclear power that were announced earlier this year, are part of the Government of Canada's partnership with Ontario through the Regional Energy and Resource Tables (Regional Tables). Ontario joined the Regional Tables process in 2022 as a way for the two levels of government to work closer together, and with Indigenous partners, to identify shared opportunities to seize the tremendous opportunities of the low-carbon economy. To get there, Canada and Ontario — in collaboration with Indigenous partners and with the input of key stakeholders — are finalizing a collaboration framework that will lay out joint actions that can be taken in the short and medium term to build tomorrow's low-carbon economy. The collaboration framework will be released before the end of this year.

Critical minerals are essential components in products used for clean energy technologies such as electric vehicles, electrical transmission lines and batteries. Canada's mining sector provides many of the building blocks of clean technologies, including lithium and copper, needed to fight climate change and build a clean economy.

Across the country, clean energy solutions are providing enormous economic opportunity for Canada. The critical mineral sector is already highly valuable to our economy. In 2022, the minerals and metals sector directly employed 420,000 people and contributed $109 billion of Canada's total gross domestic product (GDP). Since 2020, automotive and battery manufacturers have announced investments of over $40 billion in electric vehicle production and the battery supply chain. With government support and with demand for critical minerals expected to double by 2024, these sectors will only grow.

Quotes

"These projects, under the Canadian Critical Minerals Strategy's flagship program, will develop the necessary infrastructure to access and transport our rich critical mineral resources in Northwestern Ontario to market. Developments like these help mines get built faster, and they are a key element in seizing the generational opportunity before us. These investments complement the long history and deep expertise of the region in mining, create good jobs in Ontario and drive economic growth, now and into the future."

The Honourable Jonathan WilkinsonMinister of Energy and Natural Resources

"These five energy and transportation infrastructure development projects will benefit a critical mineral region in Northern Ontario. It will also improve transportation safety, reliability and access to essential services, and reinforce our government's commitment to a net-zero future."

The Honourable Patty HajduMinister of Indigenous Services and the Federal Economic Development Agency for Northern Ontario

"Thunder Bay and the surrounding area will play a huge role in an end-to-end domestic electric vehicle supply chain, including by providing the lithium needed for batteries. The federal government is making strategic investments to position Northwestern Ontario's mining sector to benefit from the economic opportunities now and for generations to come."

Marcus PowlowskiMember of Parliament for Thunder Bay–Rainy River

"By upgrading and extending vital roadways in Northern Ontario, we are improving access to key mining sites and also strengthening Canada's supply chain for clean energy technologies. These projects will boost local economies and help position Canada as a global leader in the production of essential minerals needed for the low-carbon future."

The Honourable Anita AnandPresident of the Treasury Board and Minister of Transport of Canada

"I would like to take this opportunity to thank NRCan for the conditional approval of key infrastructure for the Seymour project. This road and bridge upgrade project is essential for advancing the mine's development and will bring significant benefits to the local community, such as improving road safety and reducing traffic through town. Mining projects are always challenging to get off the ground, so we greatly appreciate the federal government's support for this critical infrastructure."

Cameron HenryManaging Director, Green TM Resources Canada Ltd.

"We are honoured to receive this funding to support the development of our Georgia Lake mining project. The construction of the Fairloch Lake Road is built upon on a strong partnership with First Nation communities, which is central to our vision of sustainable development and shared value creation. Partnerships are not only key to Rock Tech's progress but also to the broader growth of the EV supply chain in Canada. Alongside funding of other lithium projects in the region, this initiative will support the development of our Red Rock lithium converter and drive economic revitalization for the region."

Dirk HarbeckeChief Executive Officer, Rock Tech Lithium Inc.

"Frontier Lithium is pleased to receive Critical Minerals Infrastructure Funding for the advancement of an all-season road and electricity infrastructure in the region of the PAK Lithium Project. This Government of Canada support reflects the importance of Indigenous engagement and collaboration in developing key infrastructure in Northwestern Ontario."

Trevor WalkerPresident and CEO, Frontier Lithium Inc.

"The Marathon Project is one of the most advanced copper-palladium projects in Canada. Support from the Government of Canada's Critical Minerals Infrastructure Fund will be used to advance work on transportation infrastructure while we continue to work toward securing construction financing. With all federal approvals for construction having been obtained, and only three outstanding provincial permits expected to be granted by year-end, the work undertaken with this funding could support construction activities in 2025."

Jamie LevyPresident and Chief Executive Officer, Generation PGM Inc.

Quick Facts

Canada has developed its own critical minerals strategy with the aim of advancing the development of these resources and related value chains to drive the transition to a low-carbon economy and support advanced technology and manufacturing.
The Canadian Critical Minerals Strategy addresses five core objectives:
- supporting economic growth, competitiveness and job creation;
- promoting climate action and strong environmental management;
- enhancing global security and partnerships with allies;
- advancing reconciliation with Indigenous peoples; and
- fostering diverse and inclusive workforces and communities.
Canada's whole-of-government approach to critical mineral development is collaborative, forward-looking, iterative, adaptive and long-term. The initiatives presented in the Strategy will be implemented and refined in collaboration with provincial, territorial, Indigenous, industry and other Canadian and international partners.
The CMIF is a key program under the Strategy to support enabling clean energy and transportation infrastructure projects necessary to increase Canada's supply of responsibly sourced critical minerals.
The CMIF supports strategic priorities such as decarbonizing industrial mining operations, strengthening supply chains through transportation infrastructure and advancing economic reconciliation by supporting the participation of Indigenous Peoples in infrastructure and critical minerals projects.
The Canadian Critical Minerals Strategy released its first Annual Report on September 25, 2024, outlining how the Government of Canada has advanced the objectives of the Strategy, including the implementation of all the associated programs and initiatives with funding to bolster sustainable critical minerals development, from exploration, extraction, processing and manufacturing to recycling of critical minerals.
In addition, the federal government is helping to develop Canada's abundant critical minerals through NRCan's Regional Energy and Resource Tables. These regional tables are joint partnerships with individual provinces and territories — in collaboration with Indigenous partners and with the input of key stakeholders — to identify and accelerate shared economic priorities for a low-carbon future in the energy and resource sectors.