Canadian Government to Support Mining of Critical Minerals

Researched by Industrial Info Resources (Sugar Land, Texas)--Canada's government recently announced a C$3.8 billion (US$3 billion) budget commitment over eight years to promote domestic extraction and production of critical minerals.

The funding allocates up to C$1.5 billion (US $1.1 billion) for investment in the critical minerals supply chain, with a focus on supporting deposit exploration. The same amount is targeted to support critical minerals projects, especially those related to manufacturing, processing and recycling.

Funding also will go toward promoting sustainable extraction and processing, and simplifying the regulatory process for critical minerals projects.

According to the World Bank, global mineral production could increase by nearly 500% by 2050, to meet growing demand for clean-energy technologies.

The Mining Association of Canada (MAC) expressed its support for the government's plans. "The Government of Canada has positioned Canada in a leading competitive position for new investments up and down the minerals and metals sector and beyond. Doubtless, these measures will give Canada a lock on the top spot for global exploration investment and spur new investments across the value chain," said Pierre Gratton, MAC president and chief executive officer. "Canada is and will remain a trusted source for responsibly mined and processed materials essential for the world's low-carbon future and security."

Joe Govreau, Industrial Info's vice president of research for the Metals & Minerals Industry, expects the global energy transition to affect mining project activity worldwide. For more information, see Industrial Info's February 10, 2022, article - IIR Webinar: Metals & Minerals Project Activity Going Full Steam Ahead.

Industrial Info is tracking US$83.8 billion worth of capital-spending mining projects in Canada that have a high and medium probability (70-99%) of moving forward as planned. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of detailed project reports.

The projects are related to a variety of minerals crucial to the production of electric vehicles (EV) and EV batteries, including lithium, nickel and cobalt.

Brazilian mining company Vale (NYSE:VALE) (Rio de Janeiro) is at work on a C$2.2 billion (US$1.7 billion) addition and expansion at its Voisey's Bay nickel mine and concentrator in Newfoundland. The project involves developing two deposits by constructing an underground mine for each, and expanding a concentrator to increase nickel production to 40,000 tons per year, copper to 20,000 tons per year and cobalt to 2,600 tons per year. Completion is expected by the end of the year. Subscribers can click here for a detailed project report.

Canada-based Giga Metals Corporation (Vancouver) expects to kick off construction of the Dease Lake Turnagain Above-Ground Nickel-Cobalt Mine in British Columbia in 2026. The Turnagain deposit initially will be developed as a 16.4 million-ton-per-year mining operation with a processing plant. The project would be followed by an expansion to increase the capacity to 32.8 million tons per year. For more information, subscribers can see the reports on the grassroot and expansion projects.

E3 Metals Corporation (Calgary) expects to kick off five projects related to lithium extraction in the next 10 years, worth a combined C$3.2 billion (US$2.6 billion). These include an expansion at its Bowden Clearwater In-situ Lithium Brine Mine in Alberta, which involves constructing a pilot plant to demonstrate its proprietary lithium-extraction technology. Subscribers can click here to see the project reports.

In terms of the U.S., a recent report by the U.S. Geological Survey (USGS) indicated the country relies too heavily on imports for critical minerals; Canada supplied its southern neighbor with the largest amount of non-fuel mineral commodities in 2021. For more information, see Industrial Info's February 11, 2022, article - USGS Report: U.S. Non-Fuel Minerals Production Jumps 12% in 2021.

Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.