Canada's Critical Minerals Report - August 2024

Minister Vandal Announces Federal Investments to Accelerate Indigenous Economic Reconciliation and Critical Mineral Development in Manitoba

Manitoba is home to deposits of 30 of the 34 minerals on Canada’s 2024 Critical Minerals List. These include lithium, graphite, nickel, cobalt, copper and rare earth elements, which are the six minerals recognized as having the greatest opportunity to spur economic growth.

The Honourable Dan Vandal, Minister for PrairiesCan, announced a federal investment of more than $3.1 million for seven projects to support key organizations and Indigenous communities. This support will increase economic and business development opportunities that drive new areas of job creation, improve the resilience of the workforce, and empower Indigenous economic leadership.

Funding for these investments is provided through the Strategic Partnerships Initiative that supports the Manitoba Indigenous Critical Minerals Partnerships Initiative – created to further support Indigenous communities to engage with, respond to, and benefit from mineral development and exploration opportunities based on their community plans and priorities. This initiative will result in coordinated approaches to capacity building, workforce development, and business development that reflect Indigenous priorities for economic development and mining.

Examples of projects receiving support include:

Norway House Cree Nation, is receiving $300,000 to complete a business plan and deliver training programs that support sector opportunities and partnerships.
Marcel Colomb First Nation is receiving $387,957 to support the development and delivery of a Workforce Readiness Program to community members.
The Communities Economic Development Fund is receiving $265,000 to establish and expand community economic development corporations and support Indigenous participation in the sector through business and professional development opportunities.

A full list of projects can be found in the linked backgrounder. The News Release can be accessed below.

Minister Wilkinson Announces New Investments in Critical Minerals in Saskatchewan

Saskatchewan is internationally known for mining and exploration, and more recently getting recognition for critical minerals, including rare earth elements, which are used in electric vehicles (EVs), wind turbines, everyday electronics, and industrial uses. As the demand for critical minerals to power the clean economy is expected to double by 2030, according to the International Energy Agency, there is an enormous economic opportunity for Saskatchewan and for Canada to seize. Since 2020, the Saskatchewan Research Council (SRC) has taken the lead in processing and commercializing value-added products using rare earth elements throughout the development of its Rare Earth Processing Facility in Saskatoon, the first of its kind in Canada.

The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, on behalf of the Honourable Dan Vandal, Minister of PrairiesCan, announced new funding of over $16 million to support SRC in Saskatoon, Saskatchewan. This funding builds on earlier support of nearly $13.5 million from PrairiesCan and Natural Resources Canada (NRCan) for SRC to establish its Rare Earth Processing Facility and develop new rare earth mineral processing technologies.

Today’s announcement includes $15.96 million through PrairiesCan to enable SRC to acquire bastnaesite (a type of ore containing rare earth elements) from Canadian sources and create new domestic capacity for bastnaesite processing, which will be integrated into SRC’s Rare Earth Processing Facility. SRC will process bastnaesite ore acquired from Vital Metals Ltd.’s Canadian operations to produce a mixed rare earth product, which will be further processed using SRC’s solvent extraction and metal smelting technology to produce rare earth metals. SRC will also collaborate with a local educational institution to develop and deliver a training program for Indigenous students to operate bastnaesite processing equipment.

The investment of $209,330 from NRCan, under the Critical Minerals Geoscience Data (CMGD) Initiative will help SRC create a publicly available database of mineral characteristics, which will expand the understanding of critical mineral deposits in Canada and reduce mining waste. The new data will help make better predictions about the types of deposits that can be identified by sensor-based sorting, reducing the costs of developing critical mineral deposits into mines and the energy consumption and waste associated with these mines.

The Government of Canada, through the Canadian Critical Minerals Strategy, is making crucial investments in critical minerals, and seizing the economic opportunity the clean economy presents for Saskatchewan and for Canada – in line with our goal to become a critical minerals supplier of choice for the democratic world and create good jobs and economic opportunities for generations to come.

Minister Ng Promotes Growth of EV Industry and Critical Minerals Sector During Trip to Sudbury

The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, concluded a trip to Sudbury, Ontario, where she engaged with local organizations focused on the critical minerals sector and electric vehicle (EV) industry.

The Minister began her visit with a tour of the Cambrian College battery electric vehicle (BEV) lab in Sudbury. This is part of Cambrian College’s Centre for Smart Mining, a specialized research hub with equipment for prototyping BEVs and testing powertrains and batteries, including battery emulation equipment, duty cycle testing equipment and dynamometers.

Minister Ng continued her tour by visiting the Centre for Excellence in Mining Innovation (CEMI). Through the creation of the Mining Innovation Commercialization Accelerator (MICA), a pan-Canadian initiative built through a $40-million investment from the Strategic Innovation Fund, CEMI is modernizing mining by improving productivity and environmental performance. This in turn helps strengthen Canadian mineral supply chains and increases the growth of Canadian industries.

Canada is rich in critical minerals, which are vital to the manufacturing of clean technologies such as solar panels and BEVs. Initiatives like MICA will increase the efficiency and speed of mineral delivery from Canada’s mining sector, accelerating the global shift toward net zero and reinforcing Canada’s position as a leader in the global net-zero technology market.

The Minister wrapped up her tour with a visit to Crean Hill, the site of Sudbury’s newest nickel and copper mine. Employing cutting-edge mining technologies, Crean Hill is set to produce a range of valuable minerals, including gold, nickel, copper and cobalt. As we move toward greener communities, the demand for nickel and copper is expected to rise, and this new mining operation is well positioned to help meet that demand.

With the Canadian Critical Minerals Strategy as its guide, the Government of Canada is investing in developing critical mineral value chains by expanding manufacturing, processing and recycling capacities.

This tour further demonstrates the Government of Canada’s dedication to building resiliency along critical mineral supply chains, bolstering Canada’s global economic competitiveness and securing Canada’s position as a global leader in responsibly sourced mineral products. It also underscores the government’s support for zero-emission vehicle (ZEV) manufacturing as well as battery material processing to increase the supply of ZEVs and encourage the industry’s transition.

Statement from Premier Pillai on Critical Minerals and Energy Meeting with Minister Wilkinson

Premier Pillai has issued the following statement regarding a prior meeting with Minister Wilkinson:

“On January 5, I met with the Minister of Energy and Natural Resources Jonathan Wilkinson about mining and critical minerals in the Yukon alongside Yukon MP Brendan Hanley and Yukon Minister of Energy, Mines and Resources John Streicker.

“I was also pleased to be joined by representatives of industry groups with mineral interests in the territory, including the Yukon First Nation Chamber of Commerce and senior mining companies invested in Yukon projects, as well as local explorers and producers. This was a productive opportunity to hear from industry directly about the importance of access to secure, adequate clean energy for project development.

“Our discussions focused on the possibility of a grid interconnection between the Yukon and British Columbia. This is an ambitious concept and, if pursued, could help provide a solution to the

Yukon’s long-term energy needs and help mining companies meet their emissions-reduction goals. A grid interconnection would be a tremendous opportunity for shared growth and prosperity and for northern energy security which is critical to Canada’s Arctic sovereignty.

“We also discussed the importance of supply chain infrastructure such as clean energy and port infrastructure for priorities including critical minerals exploration and economic reconciliation with First Nations.

“I thank Minister Wilkinson for his attention to these key issues. I look forward to continued work here at home and with our federal counterparts as we develop a greener mining industry in the North.”

First Critical Mineral Shipment from the Port of Churchill in Decades

For the first time in over two decades, an export shipment of Critical Minerals has departed from the Port of Churchill. The zinc concentrate shipment marks a significant milestone in Arctic Gateway Group’s work to revitalize the Hudson Bay Railway, diversify the Port of Churchill, and seize the opportunity to further develop Canada’s Arctic trade corridor to global markets.

“We’re building a new era of economic development and international trade for northern Manitoba while strongly supporting the principles of Indigenous reconciliation,” said Mike Spence, Chair of Arctic Gateway Group (AGG) and Mayor of Churchill. “Thanks to the strong partnership that we have developed between the Indigenous and northern ownership group, the Government of Canada, and the Province of Manitoba, we’ve been able to improve the reliability of our operations and secure new contracts to export Canada’s critical minerals to international markets.”

Over the past two months, more than one hundred rail cars of zinc concentrate from Hudbay Minerals Inc. (Hudbay) operations in Snow Lake, Manitoba were delivered to the Port of Churchill. The zinc concentrate was then stored temporarily at a recently built storage facility, which is the first new building at the port in over twenty years. This new storage facility is the first step in a broader plan to significantly increase critical minerals storage capacity at the Port of Churchill.

“The collaborative work done between all levels of government and the leadership of the Arctic Gateway Group has paved the way for this historic day,” said Dan Vandal, Minister of Northern Affairs and Minister responsible for PrairiesCan. “With a revitalized Hudson Bay Railway and Port of Churchill, jobs will be created, mining and forestry opportunities will open, and Bayline communities will have the opportunity to position themselves as a true gateway to the Arctic and the world.”

“This export activity through Churchill is proof that our investment in the transportation system is bringing a wave of growth and renewal for the north, and advancing economic reconciliation for Indigenous peoples,” said Lisa Naylor, Minister of Transportation and Infrastructure for the Province of Manitoba.

“Hudbay has a long history of mining in Manitoba and is committed to supporting the northern economy. The Port of Churchill provides us with an efficient gateway to deliver our products to global customers. We hope to build on this initial concentrate shipment to explore other mutually beneficial opportunities with Arctic Gateway Group in the future,” said Rob Carter, Vice President of Hudbay’s Manitoba Business Unit.

Alongside work to improve and diversify the Port of Churchill, AGG has made historic investments in capital upgrades along the Hudson Bay Rail Line that help to ensure the stability and reliability of freight and passenger services. This year’s construction season includes:

Replacement of 125,000 rail ties
800,000 feet of resurfacing
Several crossing rehabilitations
Turnout replacements
Various bridge improvements, including the replacement of a large rail bridge at Mile 179.8 of the Thicket Portage Sub-Division.

In addition to today’s critical minerals export shipment, the Port of Churchill also loaded a second vessel of essential northern resupply items in mid-July, including construction equipment, vehicles, and an array goods for the people and businesses in the Arctic.

With a $60 million investment by the federal and provincial governments in 2024, this construction season AGG is set to complete major capital upgrades on the Hudson Bay Railway, purchase essential port handling equipment, and lay the groundwork for future growth and port developments. These investments are made possible through the shared vision for a reliable, efficient, and financially profitable Arctic trade corridor, supported by the Government of Manitoba, the Government of Canada, and the Arctic Gateway Group. AGG looks forward to continuing this partnership as it progresses to the next phase of development.

When fully realized in 2028, the potential benefits of the Arctic Gateway port and railway are expected to:

Reduce shipping time and costs for key international markets and more competitively priced imports and exports.
Generate over $1 Billion annually in associated economic activity for the Canadian economy.
Support over 5,500 jobs annually, including indirect jobs in associated industries such as construction and transportation.
Be a model for economic reconciliation, which is a key focus of AGG’s unique ownership group of Indigenous and northern communities.
Provide Canada with multi-use infrastructure that enables a stronger assertion of Canada’s sovereignty in the Arctic.
Give Canadian imports and exports an alternate deep sea arctic port that is accessible by rail, strengthening Canada’s supply chain.
Reduce costs of resupply shipments to arctic communities and increase food security.

Spence added, “This shipment shows the strength of Manitoba’s resources and the opportunity of our deepwater Port and arctic trade corridor – we’re exporting critical minerals mined in Manitoba through a Manitoba port using infrastructure built by Manitobans.”

Gold Mining Company Escalates Appeal to Nova Scotia Supreme Court

The company behind a Nova Scotia gold mine that stopped operating last year is escalating its disagreement with the province about how to clean up the site.

Atlantic Mining Nova Scotia, a subsidiary of Australian mining company St Barbara, thinks the terms and conditions it’s supposed to follow to remediate the Touquoy gold mine in Moose River, N.S., were not made in good faith, go against industry standards and cannot be met.

Those terms and conditions were set by Environment Minister Tim Halman in a reclamation industrial approval issued in late March.

Atlantic Mining wrote to Halman one month later to appeal.

In July, Halman wrote back, rejecting the appeal, and advised the company it could take it to the Supreme Court of Nova Scotia.

Lawyers representing Atlantic Mining did exactly that, filing an appeal late last week.

In documents submitted to the court, the company argued the minister’s rejection of its initial appeal was unreasonable on several grounds.

It raised issues around Halman’s standards for water quality management and monitoring, and the prescription of “arbitrary” deadlines.

The industrial approval includes a variety of deadlines for different stages of work, starting this year and stretching into 2028.

It also alleges that the terms and conditions set for remediation of the Touquoy mine are not site specific, they ignore a plan the company submitted and they “expose” Atlantic Mining to prosecution for non-compliance.