Canada Furthers Ontario Mining Through Investment Funding

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

The Canada Growth Fund and Canada Infrastructure Bank have pledged another C$190 million (US$136.6 million) in combined funding as part of the final round of financing needed for Generation Mining's Marathon copper-PGM mine, adding to existing Ontario mining investments.

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New Contributions

The Canada Growth Fund has pledged C$140 million (US$100.6 million) and the Canada Infrastructure Bank has boosted its contribution by C$50 million ($36 million) for Generation Mining's copper-platinum group metals (PGM) mine in northwestern Ontario. Industrial Info Resources data find more than US$2.7 billion worth of current mining construction underway in Ontario, largely for copper- and nickel-related projects.

The Canada Growth Fund (CGF) was created in 2022 and, while backed with federal funding, operates at an independent corporate entity looking to put a total of C$15 billion (US$10.8 billion) into Canadian industrial projects it considers healthy. The Canada Infrastructure Bank (CIB) is a similar Crown corporation backed by C$35 billion (US$25.2 billion) intended for major Canadian infrastructural projects.

The Marathon Mine

The final funding package is supported by others and should pave for the way for Generation Mining to make a final investment decision on the mine. Industrial Info data find the Marathon mine is planned as a three-pit, above-ground operation with an accompanying 25,200-ton-per-day flotation mill. The mine is expected to produce 42 million pounds of copper and 168,000 ounces of palladium, used in electronics and, in particular, automotive catalytic converters, annually over a 13-year life in addition to substantial production of platinum, gold and silver.

The contributions from CGF and CIB help complete a package of C$1.3 billion (US934.4 billion) in overall funding for the mine. These final contributions could pave the way for development to kick off soon, possibly within the coming months, putting it on track to begin production and processing in 2028. Readers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Other Ontario Mining Construction

Industrial Info Resources data show more than US$2.7 billion worth of capital mining projects presently underway in Ontario, and another US$43 billion worth of potential mining projects lined up for the province, although not all of these will move forward as planned.

Current construction includes multiple gold-mining projects, but some of the most substantial mining construction underway in Ontario is for copper-nickel projects. Global miner Vale is muscling in on the action in a big way with the Phase V expansion of its Creighton copper-nickel mine in the southeast of the province. This expansion kicked off earlier this year and involves deepening the mine to access new metals deposits and double the mine's overall production to up to 30,000 tons per year of nickel and 20,000 tons per year of copper.

Vale also plays a role in the possible restart of a copper-nickel mine in Ontario that has been out of operation since 1978. A Vale mill initially would be used to analyze around 330 tons per day of trucked ore from a new exploratory mineshaft being sunk by DMC Mining Services for KGHM International Limited, the Ontario-based subsidiary of a Polish multinational miner. KGHM is considering the feasibility of redeveloping the mine as a 3,500-ton-per-day shaft-mining operation. The exploration program is expected to wrap up in 2028, which could lead to further development and full production of copper and nickel over an anticipated 13-year mine life. Vale's Clarabelle mill, which also serves the Creighton mine, would continue contract toll milling for the operation after full production.

Key Takeaways

• A new round of funding has paved the way for Generation Mining to come to a final investment for its Marathon copper-PGM mine in Ontario.
• The project would add more than US$2.7 billion worth of mining construction under construction in Ontario, primarily for copper-nickel and gold mines.
• Some of the largest mining investments in the province come from Vale, which is working on doubling production from its Creighton copper-nickel mine in southeast Ontario.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).