Critical Minerals Report – September News Roundup
Canadian Critical Minerals Strategy Annual Report
Since the release of the Canadian Critical Minerals Strategy on December 9, 2022, significant progress has been made towards achieving the Strategies objectives.
On September 25, 2024, the Government of Canada’s Critical Minerals Centre of Excellence released the Canadian Critical Minerals Strategy Annual Report, which highlights progress made to date and plans for the upcoming year.
South Korean Subsidiary Volta Energy Solutions launches Canada's first copper foil plant in Granby, Quebec
Jointly announced and celebrated by the Federal Government and the Government of Quebec, Volta Energy Solutions Canada Inc., a subsidiary of South Korea’s Solus Advanced Materials, is set to construct a copper foil facility in Granby, Quebec. This business decision is considered by both governments as a significant step towards Canada securing its own battery supply chain, ensuring that it has a comprehensive electric vehicle ecosystem, and advancing its position as a key destination for future electric vehicle manufacturing.
Through the $750 million CAD investment (in addition to a $150 million partly forgivable loan from the Quebec Government and up to $70 million from the federal government as per the ongoing negotiations), the plant will be dedicated to the production of high-end battery copper foil and is expected to introduce 260 highly skilled jobs to the local economy.
Government of Canada Supporting Critical Minerals Processing in Kingston
On September 4, 2024, Mark Gerretsen, Member of Parliament for Kingston and the Islands, on behalf of the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced almost $8.4 million in investments to Cyclic Materials Incorporated and Green Graphite Technologies Inc. under the Critical Minerals Research, Development and Demonstration program. This funding will support the development of a circular economy for rare earth elements for permanent magnets and the recycling of graphite for use in lithium-ion batteries here in Canada.
Canada Announces Significant Funding to Unlock More Critical Minerals Development in Northern British Columbia and the Yukon
On September 20, 2024, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, with the Honourable Josie Osborne, British Columbia’s Minister of Energy, Mines and Low Carbon Innovation, and the Honourable Ranj Pillai, Premier of the Yukon, announced up to $60 million in funding, pending final due diligence from Natural Resources Canada, for two critical minerals infrastructure developments in B.C.’s Golden Triangle and the Yukon. This funding would be provided through the Critical Minerals Infrastructure Fund (CMIF).
Galore Creek Mining Corporation (Galore Creek) is planning to construct a 43-kilometre access road to support the development of its copper mine located in Tahltan Territory in northwest B.C. The Galore Creek deposits contain over 12 billion pounds of copper and, once in production, will significantly increase Canada’s annual copper supply. The construction of the Galore Creek Access Road would link the mine project to existing road infrastructure, provide ground access to proposed mill and processing facilities, and provide the electricity transmission corridor allowing the Galore Creek mine to operate using BC Hydro’s low-emission electricity grid. Road improvements are integral to advancing critical minerals development in B.C.’s northwest, in partnership with First Nations. Pending final due diligence, Natural Resources Canada has conditionally approved an investment of up to $20 million under the CMIF for this project.
The Government of Yukon is seeking to undertake pre-feasibility activities to advance a 765-kilometre, high-voltage transmission line network that would connect the Yukon electrical grid to the North American grid in B.C. This regional project has proposed energy infrastructure located in two priority regions for critical minerals development — Yukon’s Cassiar and Tanana regions and B.C.’s Golden Triangle. The transmission line could support projects producing critical minerals such as cobalt, copper, molybdenum, nickel, platinum group metals, tungsten and zinc in the Yukon and northern B.C. Pending final due diligence, Natural Resources Canada has conditionally approved an investment of up to $40 million under the CMIF for this project.
Province Unveils New Battery Storage Project in Southwestern Ontario
The Ontario government unveiled a new battery storage project in southwestern Ontario that will provide reliable and affordable clean energy to families and businesses. Once built, the Tilbury Battery Storage Project will store 80 megawatts of power equivalent to powering 80,000 thousand homes. Walpole Island First Nation has partnered with Boralex to advance this project, which will begin construction later this year and support over 150 local jobs.
SRC Rare Earth Processing Facility First to Produce Rare Earth Metals in North America
The Saskatchewan Research Council (SRC) is proud to announce that its Rare Earth Processing Facility located in Saskatoon, SK, is ahead of schedule and produced rare earth metals at a commercial scale in summer 2024 – making Saskatchewan the first and only jurisdiction to do so in North America.
Using in-house developed, state-of-the-art, automated technology in metal smelting, SRC’s facility is ready to produce 10 tonnes of neodymium-praseodymium (NdPr) metals per month, with purities greater than 99.5 per cent and conversions greater than 98 percent. SRC is on track to upscale this production to 40 tonnes of rare earth metals per month by the end of December 2024.
Once fully operational in early 2025, SRC’s Rare Earth Processing Facility will produce approximately 400 tonnes of NdPr metals per year, enough to power 500,000 electric vehicles. Rare earth metals are also essential components for wind turbines, robotics, HVAC systems, elevators and green technologies.
PDAC Extends Deadline for Indigenous Ambassador Program
The application window for the Prospectors and Developers Association of Canada’s (PDAC) inaugural Indigenous Youth and Early Career Ambassador Program has been extended to Nov. 1, 2024, by popular demand.
This program’s ambassadors will receive support to attend the PDAC 2025 convention, where they will gain unique educational experiences, mentorship, and networking opportunities. These experiences are designed to bolster their careers and provide them with critical knowledge to share with their peers and communities, positioning them as next-generation leaders in the mineral industry.
Those who are selected as ambassadors will receive a complimentary PDAC 2025 all-access pass, travel support, invitations to exclusive events, priority access to program sessions and receptions, and invaluable mentorship opportunities. Ambassadors can apply themselves or be nominated by their community or a mineral industry organization.
Eligible candidates must be Indigenous, between 19 and 30 years old, have a demonstrated interest in the mineral industry, and show a commitment to their community. Up to five Ambassadors will be selected by the PDAC’s Indigenous Affairs Committee beginning in October 2024 on the basis of their applications.
Digging Deep: The Risks and Opportunities in Mining, KPMG Report
This month, KPMG has released a report on their insights gathered from a survey to offer perspective on the evolving risks facing the mining industry.
Foreword – The minerals and metals industry is a fundamental pillar of the global economy. The industry has played a pivotal role through history and will continue to do so as we embrace and facilitate the transition to a low carbon future. The outlook for growth is strong; however, the risks and opportunities that lie ahead for the industry have never been broader and more diverse. While the demand for metals and minerals is rapidly growing, there is consensus amongst the industry that the ability to develop new mines is an increasing challenge, owing to stringent regulatory and compliance requirements, heightened expectations on environmental, social, and governance performance, rapid technological advancements, and the competition to attract and retain skilled talent, to name a few. By addressing these challenges, mining and metals companies can define success for their organizations and the industry as a whole and seize the opportunities that lie ahead.
Metals Producer Backed by Canada Province Vows to Compete with China in Rare Earths
The Canadian province of Saskatchewan has vowed to compete with China in processing and production of rare earths and become the first North American commercial alternative source for the metals, used to make magnets for electric vehicles and wind turbines.
The Saskatchewan Research Council Rare Earth Processing facility is betting on demand for these magnets to jump in the next couple of years, driven by demand from original equipment manufacturers such as automakers.
The Canadian province, home to copper, potash and uranium mines, is known for its mining prowess.
China controls 95% of the global production and supply of rare earth metals. The near-monopoly allows the country to dictate prices and create uncertainty for end users through export controls. In the last year, China has placed export controls on some critical metals such as germanium, gallium and antimony, forcing western governments to look for alternatives.
The SRC Rare Earth processing facility has begun production on a commercial scale and expects to hit a production target of 40 tonnes of rare earth metals per month by the end of this year. And it will produce 400 tonnes of the NdPr metals per year, which is enough to produce 500,000 EVs, according to SRC. The facility has already tied up with potential clients in South Korea, Japan and the United States.
Saudi Arabia Sees Mining Dealmaking in Canada
Saudi Arabia’s mining minister doesn’t see any barriers preventing dealmaking by the kingdom into Canada’s mining sector, despite government rules restricting investments from state-owned foreign entities.
“I have no reason to believe there will be an issue,” Minister Bandar Alkhorayef said in a Monday interview in Toronto, where he’s part of a Saudi delegation meeting with Canadian mining companies to discuss investment opportunities.
The minister of industry and mineral resources said he expects Saudi’s state-backed funds to buy stakes in Canadian metals businesses as the Middle Eastern kingdom expands its influence in the global mining industry. Canada’s rules targeting certain foreign investors won’t get in the way, he said.
Canada’s federal government introduced new rules in 2022 that added a layer of regulatory scrutiny to investments by foreign state-owned entities. Such deals will only be approved “on an exceptional basis” if they’re considered a net benefit to Canada.
John Rustad Announces Plan to Unlock British Columbia’s Mining Industry
John Rustad, Leader of the Conservative Party of British Columbia, laid out the Conservative Party’s vision for the future of BC’s mining industry, promising to cut through the red tape, reduce regulatory burdens, and position BC as a world leader in responsible resource extraction. Key elements of the plan include:
- Streamline Permitting Processes: A Conservative government will establish clear timelines and a “one-stop” approval process to ensure that mining companies are not tied up in bureaucratic delays.
- Reduce Regulatory Burdens: A Conservative government will conduct a full review of mining regulations to remove unnecessary or duplicative requirements, ensuring that regulations focus on safety and environmental protection, while encouraging investment.
- “You build it, You clean it”: Uphold BC’s high environmental standards, and make sure that any company building a mine is responsible for cleaning it up at the end of its life cycle.
- Invest in Critical Infrastructure: A Conservative Party will prioritize investments in transportation, energy, and water infrastructure in key mining regions, ensuring that mining projects, particularly in remote areas, have the resources they need to operate efficiently.
- Economic Reconciliation and Indigenous Partnerships: A Conservative government will work closely with Indigenous communities, creating clear and transparent consultation processes to foster strong, mutually beneficial partnerships that support both the communities and the industry.
- Promote Critical Mineral Development: Rustad emphasized the global importance of critical minerals, such as copper and lithium, in clean energy technologies. A Conservative government will make British Columbia a hub for responsible critical mineral development, positioning BC as a key supplier on the global stage.
- Create a Competitive Tax Environment: To attract and retain investment, a Conservative Party will ensure a fair and competitive tax structure, reviewing existing policies to encourage long-term investment and making BC an attractive destination for mining investments.
Rustad concluded by promising that a Conservative government will prioritize both the prosperity of the mining sector and the protection of BC’s environment and Indigenous partnerships.