Critical Minerals Report – January 2025 News Roundup
Government of Canada Invests in Critical Minerals Production in Saskatchewan
The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, on behalf of the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, announced a $41 million investment in Foran Mining Corporation. This investment, being made through the Strategic Innovation Fund (SIF), will support the company’s $263.7 million project to adopt and integrate clean innovative technologies at Foran’s McIlvenna Bay mine in Saskatchewan. Foran is striving for its project to be the first carbon-neutral copper project in Canada.
Through this SIF contribution, Foran will be able to purchase a battery-electric vehicle fleet, purchase and integrate a ventilation-on-demand and heat recovery system, develop a water recycling system, and integrate a pyrite removal system at its facility. Once completed, the project at McIlvenna Bay mine is expected to be a blueprint for responsible and sustainable mining. This funding builds on an investment of up to $20 million from the federal government’s Critical Minerals Infrastructure Fund made in December 2024 to enable the construction of a hydro transmission line to connect to clean hydroelectricity, build an on-site substation, and put in place electrical vehicle charging infrastructure.
Saskatchewan is a leader in mining and innovation. The mining sector alone supports approximately 30,000 direct and indirect jobs across the province, and 27 out of Canada’s 34 critical minerals can be found there. In alignment with the Canadian Critical Minerals Strategy, this investment will increase the domestic supply of two key minerals required for the transition to a clean and digital economy: copper and zinc. Foran’s project will support the development of domestic value chains from exploration to manufacturing. The mine will also bring significant benefits to the province of Saskatchewan and Indigenous communities by maintaining nearly 400 full-time jobs and providing employment and economic opportunities to Indigenous communities.
Ontario Securing a Critical Minerals Supply Chain
The Ontario government is investing over $7 million in 17 projects to accelerate research, development and commercialization of innovative technologies to help the province meet the increasing global demand for critical minerals needed to manufacture batteries and electric vehicles.
The funding, delivered through the Critical Minerals Innovation Fund, will help stimulate investment in Ontario’s critical minerals supply chain and create jobs in the mining sector.
The projects receiving funding span a range of focus areas such as mineral exploration, extraction, processing, advanced manufacturing, and recycling of minerals. Two local projects include:
- $495,740 to NetZero Metals to support low carbon, low-cost nickel processing capacity in Timmins.
- $223,552 to EV Nickel Inc. to advance its bioleaching process and prepare the final design for its pilot plant in Timmins to produce high-grade clean nickel to support the EV supply chain.
A secure critical minerals industry not only strengthens the EV sector, but our entire economy and national security. By ensuring consistent access to these essential materials, we are mitigating the risks of supply chain disruptions in important sectors such as aerospace and defence, health and life sciences, information and communications technology, and energy.
Ontario Building Fortress Am-Can by Accelerating Strategic Resource Development
Premier Doug Ford outlined Ontario’s plan to accelerate strategic resource development, including Ontario’s critical minerals in the Ring of Fire region, to build Fortress Am-Can, a renewed strategic alliance between Canada and the United States that is a beacon of stability, security and long-term prosperity.
The United States and Canada are each country’s most significant trading partners, representing trillions of dollars in annual economic activity and millions of jobs on both sides of the border. Fortress Am-Can will leverage Ontario’s unique advantages to help America bring jobs back home as it decouples from China, including by establishing a new Am-Can Critical Mineral Security Alliance that invests in and builds out American and Canadian critical mineral supply chains, including by significantly expanding Am-Can processing capacity.
Through its Critical Minerals Strategy, Ontario is already delivering on its ambitious vision for a made-in-Ontario supply chain to meet the increasing global demand for critical minerals necessary to manufacture technologies like batteries and electric vehicles. As Ontario continues to move this strategy forward, it will continue to prioritize engagement with First Nation leaders and communities as the province meets its duty to consult obligations. As part of building Fortress Am-Can, Ontario is recommending the following additional measures:
- Establishing a new Am-Can Critical Mineral Security Alliance that invests in and builds out American and Canadian critical mineral supply chains, including by significantly expanding Am-Can processing capacity.
- Accelerate federal and provincial regulatory approval timelines for current and planned critical mineral projects with priority given to projects that displace Chinese supply, enshrining a one project-one process permitting approach to all resource development in Canada with service standards and timeline guarantees for regulatory approvals, while promoting First Nation equity and economic participation and respecting and meeting duty to consult obligations.
- Designating areas where multiple critical minerals are present or likely to be present, such as the Ring of Fire region in Ontario, as regions of strategic importance to the national security of Canada and the U.S. These regions should be supported with a special approvals process that significantly reduces the timelines to get minerals out of the ground.
- Ensuring federal foreign investment reviews capture emerging strategic sectors and supply chains like critical minerals and energy with the stated objective of protecting these emerging strategic sectors for Fortress Am-Can.
- Building the roads, highways and other infrastructure required to access, develop and operate new critical minerals mines and processing facilities.
- Working with the U.S. Department of Defense to prioritize shared Am-Can national security objectives for Canadian government investments in critical mineral supply chains, including strategic investments in critical mineral mining and processing projects.
- Establishing a cross-border working group on mineral price stability to identify Am-Can policy solutions that promote the long-term sustainability of critical mineral development projects.
Ontario and Aroland First Nation Sign Historic Agreement Connecting Roads to the Ring of Fire
Premier Doug Ford, Greg Rickford, Minister of Northern Development and Minister of Indigenous Affairs and First Nations Economic Reconciliation, and Aroland First Nation Chief Sonny Gagnon signed a Shared Prosperity Agreement to drive economic growth and build and upgrade infrastructure in Northern Ontario. This agreement includes support for upgrades to Anaconda and Painter Lake Roads, which are important connections on the road to the Ring of Fire, as well as major new investments in infrastructure and energy transmission in the region. It also builds upon agreements that are in place with other First Nations partners along the entire proposed length of the roads to the Ring of Fire and helps set the stage for further potential partnerships.
“With the risk of U.S. tariffs, it’s never been more important for us to work together to do everything possible to keep our economy competitive. At the top of the list is unlocking the economic potential of the Ring of Fire region,” said Premier Doug Ford. “These partnerships will transform Northern Ontario with new jobs, growth and opportunities throughout the region. I’m grateful to Chief Sonny Gagnon and Aroland First Nation for their partnership as we sign this historic agreement.”
The agreement will create opportunities and support the long-term prosperity of Aroland and broader Northern Ontario through strategic investments and partnerships, including:
- Support for upgrading Anaconda Road and Painter Lake Road, including the potential establishment of a Road Advisory Body to help move this work forward. The agreement builds on the Letters of Confirmation signed by Premier Ford in June 2024 at the Gateway to the Ring of Fire that included maintenance and upgrades to Highway 584 and Highway 11. Anaconda and Painter Lake Roads connect to these vital infrastructure links via Highway 643 and will one day connect to the proposed Marten Falls Community Access Road, Northern Road Link and Webequie Supply Road, linking Marten Falls First Nation and Webequie First Nation to the Ontario highway network and providing access to the Ring of Fire.
- $70 million to advance route and design planning of the Greenstone Electricity Transmission Line, working with Aroland First Nation, Animbiigoo Zaagi’igan Anishinaabek, Ginoogaming First Nation, Biinjitiwaabik Zaaging Anishinaabek, Bingwi Neyaashi Anishinaabek and Red Rock Indian Band.
- Aroland First Nation has expressed an interest in acting as a proponent for the development of a transload facility and a host community for a smelter. Ontario will support Aroland in considering these opportunities.
- $20 million for community infrastructure projects that support business development, boost community well-being and preparedness to participate in economic activities related to mineral development in the region. Additionally, the agreement provides for up to $2.27 million for a comprehensive community plan to support business development and community wellness.
- Ontario, Aroland First Nation and potentially other interested nearby First Nations will hold discussions to establish an agreement to share the economic benefits of forestry and mining operations in the region.
Mining Association of Canada Responds to US Tariff Action Against Canada
Pierre Gratton, President & CEO of The Mining Association of Canada, issued the following statement in response to the decision by President Trump to impose tariffs on all Canadian products destined to the United States:
“Canada has long been a dependable partner, providing certainty to U.S. manufacturing anddefense industries by serving as a major supplier of minerals and metals. In 2022, 52% of Canada’s mineral exports—valued at over $80 billion—were destined for the U.S. The imposition of tariffs on Canadian minerals and metals products runs counter to American national security and economic interests. These tariffs will disrupt the essential flow of mineral and metal resources, exacerbate vulnerabilities in critical mineral supply chains that both nations have been working to address and raise the costs of doing business for our U.S. customers.
The partnership on critical minerals between Canada and the U.S. began in earnest with the development of the Joint Action Plan on Critical Minerals Collaboration in 2020 under President Trump. In lieu of tariffs, Canada and the U.S. should be focusing on how to deepen this collaboration. The minerals and metals industry in Canada stands ready to strengthen our relationship with the United States, ensuring the free flow of these essential resources that drive economic growth, defense capabilities, and technological advancement on both sides of the border.
MAC members produce mineral and metal products that are globally traded. U.S. tariffs will lead Canada’s mining sector to pursue new and deepen existing alternative markets, as well as alternative sources of inputs necessary for the continued operation of mining facilities. This will hurt U.S. businesses.
MAC also urges Canadian governments to use this moment to address long-standing barriers to Canadian economic growth, including the removal of internal trade barriers, complex, expensive and lengthy regulatory processes and uncompetitive tax policies. It is time for all governments to double down to create the conditions for improved competitiveness, investment, productivity and prosperity.
Singh Calls for Party Leaders to Stop Trump’s Tax with Retaliation
NDP leader Jagmeet Singh is calling on Canada’s party leaders to withhold targeted critical minerals that America needs in addition to implementing retaliatory tariffs if American President Donald Trump moves ahead with his punishing 25 per cent tax on all Canadian goods.
“It’s time to fight like hell for Canadian jobs and more affordability,” said Singh. “Canada is the greatest nation on earth. A country where we take care of our neighbours, and we believe in fairness. Trump’s tax threats fly in the face of what Canada believes – it will mean job losses for hundreds of thousands of Canadians, higher prices for Americans and Canadians, and a weaker Canadian dollar – driving up inflation for Canadians yet again.
“But our great country has in abundance what Donald Trump and America need – like cobalt and lithium for electric vehicle batteries. In order to continue to export all minerals and products to the United States without job-killing tariffs, we need to stand up to the bully now. There’s no economic pressure stronger than withholding what Donald Trump needs. If Donald Trump comes for Canadian jobs and affordability, he’ll be attacking his plan, American jobs and affordability, too.”
Why Critical Minerals Mined in B.C. Could Stop Being Exported to the U.S. Amid Trump Tariffs
Economists say B.C.’s mining industry could play a major role if proposed tariffs by U.S. president-elect Donald Trump go through, after Premier David Eby hinted that critical minerals manufactured in the province could be subject to an export ban.
Eby said Tuesday the province is working on a strategy to fight the 25 per cent tariffs on Canadian goods proposed by Trump. The U.S. president-elect is threatening the measure in response to what he says is Canada’s inability to tackle illegal immigration and drug smuggling across the Canada-U.S. border.
The premier had suggested Tuesday that retaliatory tariffs and export bans could be part of the response, and cited a smelter operation located in Trail, B.C., which exports minerals that Eby said are critical for the U.S.
“If the United States doesn’t get this metal from the Teck smelter in Trail, it’s not available at all,” Eby said.
Experts say critical minerals, like those manufactured in Trail, could be a new frontier in national security, and would prove to be an important bargaining chip in the event of a trade war.