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Saturday, Apr 20, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Minister of Natural Resources announces over $344M investment in critical minerals development

During the PDAC 2023 Convention, Minister Wilkinson announced the approval of six projects under the CMRDD program

Canada announces over $344M investment in critical minerals development
Minister Wilkinson announced the approval of six projects under the Critical Mineral Research, Development and Demonstration program.

Natural Resources Canada has recently unveiled its latest efforts toward Canada’s Critical Minerals Strategy, which will involve the allocation of over $344 million in funding.

This Tuesday, Minister of Natural Resources Jonathan Wilkinson announced five new programs and initiatives that will be supported through the $3.8 billion total funding of the critical minerals program launched last December.

The Canadian government has allocated $144.4 million to a Critical Minerals Technology and Innovation Program, which will focus on research, development, and adoption of sustainable technologies in critical mineral value chains. Another $79.2 million has been allocated for the Critical Minerals Geoscience and Data Initiative, which aims to enhance geoscience and mapping using digital technologies for the efficient development of critical mineral value chains.

Furthermore, the Global Partnerships Program has been allocated $70 million to enhance critical minerals supply chain resiliency through international collaborations.

Additionally, $40 million has been allocated for the Northern Regulatory Initiative to support regulatory dialogue, regional studies, land-use planning, impact assessments, and Indigenous consultation.

Finally, $10.6 million has been set aside for the renewal of the Critical Minerals Centre of Excellence (CMCE) to continue the development and implementation of the Canadian Critical Minerals Strategy.

In the upcoming months, more information about the programs, such as a call for proposals, will be disclosed. The recent programs and initiatives build on prior investments that promote critical minerals research and development.

These investments will support various industrial operations, from geoscience and exploration to mineral processing, manufacturing and recycling. The funding will also support research, development and technology deployment.

Read more: Canada unveils $3.8B ‘Critical Minerals Strategy’ for sustainability

Read more: Ontario considers large-scale nuclear power to cut carbon emissions

Minister Wilkinson approves six new projects

During the PDAC 2023 Convention, Minister Wilkinson announced the approval of six projects under the Critical Minerals Research, Development and Demonstration (CMRDD) program.

The project’s funding will total $14 million which will pay for pilot demonstrations of the processing technologies. The aim is to advance the commercial readiness of emerging processing technologies that will support the development of value chains for zero-emission vehicles (ZEV) in Canada.

The expected outcomes of the CMRDD program are reduced energy or carbon intensity, improved capital and/or operating costs of critical mineral production and the production of critical minerals using novel processes.

The six projects that will receive funding include Sherritt International Corporation (TSX:S) which will receive around $795,500; FPX Nickel Corp. (TSX-V: FPX, OTCQB: FPOCF) will receive $724,800 and Search Minerals Inc. (TSXV: SMY) (OTCQB: SHCMF) will receive $5 million;

It will also give $3.5 million to E3 Lithium (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF)  which will be used in the design, construction and operation of E3’s field pilot plant, which is on track to begin operations in 2023. Geomega Resources Inc. (TSX.V: GMA) (OTC: GOMRF) will also receive $3 million.

“This contribution provides us with the needed funding and support to deliver on our major milestones throughout this year as we move forward with the demonstration plant development,” Geomega CEO Kiril Mugerman said in a statement.

Finally, Prairie Lithium will receive $1 million to develop its lithium extraction technology.

Read more: Ontario introduces legislation to strengthen mining sector and critical minerals supply chains

Read more: G7 countries form Sustainable Critical Minerals Alliance to reverse biodiversity loss

Critical minerals sector creates jobs, encourages innovation and reduces emissions

According to Wilkinson, Canada’s investment of $344 million will support the advancement of a dynamic and competitive critical minerals sector, which will create good jobs, encourage innovation and reduce emissions, aligning with the country’s goal of building a cleaner and sustainable economy.

Canada will remain at the forefront of the economy of tomorrow by continuing to develop our critical minerals and metals,” said Minister of Innovation, Science and Industry Francois-Philippe Champagne.

“We will leverage our competitive advantages in clean energy, talent, sustainable mining, and innovation so that Canada remains a green supplier of choice.”

In collaboration with Canadian companies, the National Research Council of Canada will drive innovation in the critical minerals ecosystem, creating good jobs for Canadians and building resilient supply chains.

Read more: Canadian extractive resource sector offers highest paying jobs for Indigenous workers

Read more: Palladium One Mining acquires MetalCorp for $3.3M, expands critical minerals portfolio

Canadian government wants to reach net-zero emissions by 2050

The Canadian government’s Critical Minerals Strategy is a part of their strengthened climate plan, 2030 Emissions Reduction Plan.

The aim is to reduce greenhouse gas emissions by 40 to 45 percent below 2005 levels by 2030 and reach net-zero emissions by 2050. The Critical Minerals Technology and Innovation Program, co-delivered by Natural Resources Canada and the National Research Council of Canada, will build on Canada’s success in the critical minerals space.

The program will focus on advancing the development of critical minerals, such as rare earth elements, sustainable potash mining, and electric vehicle battery assembly, by funding pilot plants and demonstration projects. These projects will bridge the critical gap in technology development and move technologies toward pre-commercialization.


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