The federal government is investing up to $10 million in a critical minerals project in Quebec, following a recent partnership with the United States on a Yukon mine.
The funding will go to Montreal’s Torngat Metals to undertake pre-development activities for building a 170-kilometre road in northern Quebec and Labrador, along with new port facilities on the Labrador coast, Ottawa announced in a
news release on Dec. 20. Those activities will include engaging with indigenous communities, environmental reviews, and other planning and design work.
Pending final approval, the new road will enable transport of rare earth elements from Quebec’s Nunavik region to Labrador for shipping to separation and processing plants. Nunavik is the northernmost region of Quebec and makes up a third of the province.
The project includes a 59-hectare single open pit mine located near Lac Brisson in Nunavik, and pre-feasibility and feasibility studies are expected to be completed by the end of 2025, with production slated to begin in 2028, says
Torngat Metals.
According to the news release from Natural Resources Canada (NRCan), “Through this project, Canada can become a global supply chain leader in rare earth elements at time where there is a critical shortage of heavy rare earth elements outside China.”
China holds a near-monopoly on the production of rare earth elements, accounting for 70 percent of global mined production and 87 percent of global refined production in 2022, according to NRCan. Rare earth elements are a group of 17 metals essential to industrial and high-technology applications, including electronics, aerospace, automotive, and defence.
Alliance
Concerns about China’s use of export restrictions on rare earth elements and critical minerals in geopolitical
disputes have arisen before, including during a 2010 conflict with Japan over disputed islands, when China temporarily halted rare earth exports to that country.
On Dec. 3, Beijing imposed
export bans on “dual-use” critical minerals destined for the United States, saying this was “to safeguard national security interests and fulfill international obligations such as non-proliferation.” Prohibited exports include items related gallium, germanium, antimony, and “superhard” materials, and in addition stricter end-usage reviews for graphite-related exports will be applied, said China’s
Ministry of Commerce.
The move is widely seen as retaliation against the United States and other Western countries for their efforts to restrict the regime’s access to advanced semiconductor technologies.
Pillai made the remark during a Dec. 16
press conference in Toronto, where he and the other premiers discussed U.S. President-elect Donald Trump’s threat to impose a 25 percent tariff on all goods imported from Canada and Mexico.
While it is unclear whether critical minerals would be affected by the potential tariff, Pillai highlighted “the importance of collaboration” with the United States on similar projects, noting that the Yukon produces critical minerals impacted by China’s export ban, making the territory an alternative source for its North American ally.
“The United States is overly reliant on overseas sources of tungsten and a secure North American supply for this commodity will mitigate one of our most critical material risks. This award also highlights the importance of the Department’s partnership with our Canadian allies,” the U.S. Defence Department said in a Dec. 13
press release.
The joint investment announced on Dec. 13 includes C$12.9 million from NRCan and US$15.8 million (roughly C$22.7 million) from the U.S. Department of Defence.
The funding will go to Fireweed Metals Corp. for the
Mactung Project, a mine site that straddles the Yukon-Northwest Territories border. The money will support “pre-development activities” such as design, studies, baseline data collection, and consultations with First Nations. The activities will focus on improving approximately 250 kilometres of road, upgrading an existing transmission line, and building a new transmission line.
