Following the publication of Canada's new critical minerals policy, mining corporations with projects in the North claim that additional federal support is required.
Following the publication of Canada's new critical minerals policy, mining corporations with projects in the North claim that additional federal support is required. However, some environmentalists are worried about the potential effects.
Northern miners claim that more federal assistance is necessary to implement a crucial mining plan
Numerous projects in the North concentrate on crucial minerals like zinc, copper, cobalt, bismuth, tungsten, uranium, and nickel, deemed essential to Canada's economy and strategic industries like clean technology.
For example, the Nechalacho mine, owned by Cheetah Resources, a subsidiary of Vital Metals, became operational in the Northwest Territories in 2021.
After more than five years of discussions with the federal government over essential minerals, Fortune Minerals Ltd. President and CEO Robin Goad claimed that significant action has yet to be taken.
A cobalt, gold, bismuth, and copper project in the NWT is owned by Fortune. Goad declared, "It's time we stop talking about this and (start) doing something. Even if the government budget announced this enormous sum of money, it is currently only smoke and mirrors.
Last month, the federal government unveiled a plan to improve the supply of 31 essential minerals from ethically sourced sources. It is supported by $3.8 billion in the 2022 budget, which includes $40 million for northern regulatory processes and a 30% tax credit for mineral development.
As he visits a facility producing vital minerals, Trudeau says that environmental responsibility is "top of mind.” But, according to Goad, funding should be concentrated on advanced projects that can go into production immediately, like the Nico mine and processing.
According to him, the company might start producing in three years after securing financing. However, goad also stated that regulatory frameworks are "expensive and onerous," The NWT, whose economy is based on mining, is a high-cost jurisdiction with little infrastructure.
The approach intends to quicken critical projects, provide resilient infrastructure, cut down on duplication, and improve evaluations. In addition, it plans to enhance Indigenous Peoples' reconciliation, environmental protection, and climate action.
Brandon Macdonald is the founder and CEO of Fireweed Metals, which holds the tungsten Mactung project and the zinc, lead, and silver Macmillan Pass projects on the Yukon-N.W.T. border.
He noted that he would like the government to extend flow-through tax credits due to a lack of funds throughout the lengthy regulatory process. This is in addition to investing in infrastructure like motorways, power grids, smelters, and refineries.
"They're going to want to keep more of these things in the country, or at least with close allies," he added, citing the rise of resource nationalism surrounding crucial minerals.
It takes a little faith to believe that the government will back these. Nevertheless, Osisko Metals Inc. will revive the NWT's historic Pine Point mine as a zinc and lead project.
While Canada has set carbon reduction objectives for 2030 and 2050, chief operating officer and director, Jeff Hussey said incentives are good because exploration may be risky and mine development takes time.
He added that we're off to a fantastic start, adding that the sooner and more encouragement, the better. Hussey stated that while maintaining community and environmental protection, he would like to improve the permitting process.
According to 2020 research by the World Bank Group, over three billion tonnes of minerals will be required to achieve climate change goals by 2050. Furthermore, the demand for these minerals is expected to rise by about 500% globally.
As part of a three-day tour of Canada's battery supply chain, Prime Minister Justin Trudeau paid a visit to Vital Metals' rare earth elements processing facility in Saskatoon on Monday. He discussed the significance of trustworthy supplier chains, environmental stewardship, and collaborations with Indigenous people.
The world is trending in this direction, he continued, and Canada is fortunate to be in a position to follow suit. However, regarding the climate catastrophe, he remarked, "I don't think this is very helpful, and I don't think this is the proper way."
According to O'Reilly, these initiatives can be financially and environmentally dangerous. More research should be done to evaluate the possible effects of processing these minerals on the environment and people's health.
Jamie Kneen of MiningWatch Canada says the policy ignores several mining-related issues. "What we've got here is a plan to promote mining, not a plan to assure that Canada is doing anything more than speeding up the kinds of extractive processes of an extractive economy that we're already engaged in," one of the officials stated.
To ensure that communities can effectively interact with and respond to resource initiatives, Kneen said a greater emphasis should be placed on planning and coordination with Indigenous administrations.
The federal government intends to talk about the provinces, territories, and essential minerals as well as energy and resource priorities.