Canada announces more federal investment for projects to advance critical minerals mining

Canada Energy and Natural Resources Minister Tim Hodgson on June 29 announced investments of up to $73-million planned for 12 projects across Canada to advance mining and the infrastructure needed to connect Canadian critical minerals to global markets.

The country has been on a drive to position itself as a stable supplier of the mineral resources that power clean energy, advanced manufacturing and defence.

The new investments include $51.5-million through the First and Last Mile Fund for five projects to advance critical minerals production and supply chains; $19.6-million under the Energy Innovation Programme for five projects to advance clean energy and industrial decarbonisation technologies that strengthen Canada‘s economic and climate competitiveness; and almost $2-million under the Indigenous Natural Resource Partnerships programme for the Tahltan Central government’s project to co-develop, assess and participate in decision-making on major critical mineral resource projects.

Hodgson believes that, together, these projects demonstrate how Canada is unlocking its full potential through clean innovation, Indigenous partnership and strategic infrastructure that connects resources to global markets and supports trade diversification.

“By acting now, Canada is building the strongest, most sustainable mining sector in the world,” the Minister states.

Notably, the First and Last Mile Fund builds on the success of the country’s Critical Minerals Infrastructure Fund and is supported by $1.5-billion in federal funding.

Among the latest projects receiving support from the Canadian government is TSX-listed Fortune Minerals through its joint venture with the Tłıchǫ government. Fortune has received conditional approval from the government of Canada for up to $50-million to support construction of the NICO Project Access Road (NPAR) in Northwest Territories.

The First and Last Mile Fund will reimburse 75% of the costs up to $50-million for construction of the 51-km-long NPAR across Tłıchǫ private lands, connecting the NICO cobalt/gold/bismuth/copper mine to the NWT highway system near the community of Whatì.

The NPAR will be used for mine construction and operations, including transportation of metal concentrates to a dedicated hydrometallurgical facility in Alberta for processing.

The $50-million award will help mitigate capital cost escalations for Fortune as it advances the NICO project toward a construction decision.

Moreover, TSX-listed Greenland Resources has secured a $7-million contribution from the Canadian government through Natural Resources Canada‘s Critical Minerals Research, Development and Demonstration programme.

Canada is now the first G7 government to invest in mining in Greenland.

Greenland Resources‘ metallurgical programme will evaluate the feasibility of processing primary molybdenum using saline and fresh water for flotation, as well as assess the potential recovery of magnesium and rare earths as by-products contained within the Malmbjerg orebody and saline water.

The programme will run until March 2028.