The Government of Canada is investing CAD$16 million in the Saskatchewan Research Council (SRC) to establish a Rare Earth Processing Facility and develop new processing technologies in Saskatoon.
Jonathon Wilkinson, the Minister of Energy and Natural Resources, announced the funding last Wednesday. PrairiesCan and Natural Resources Canada (NRCan) previously provided nearly CAD$13.5 million to SRC to establish its facility and develop new rare earth mineral processing technologies.
Since 2020, the Saskatchewan Research Council (SRC) has taken the lead in processing and commercializing value-added products using rare earth elements throughout the development of its rare earth processing facility in Saskatoon.
PrairiesCan will provide CAD$15.96 million to SRC, enabling them to acquire bastnaesite from Canadian sources. This is a type of ore containing rare earth elements. This would also build new domestic capacity for bastnaesite processing.
SRC will integrate this processing into its rare earth processing facility and process bastnaesite ore from Vital Metals Ltd.’s (ASX: VML) Canadian operations to produce a mixed rare earth product.
The council will process this into rare earth metals using its solvent extraction and metal smelting technology.
Bastnaesite is a rare earth mineral primarily composed of cerium, lanthanum, and other rare earth elements (REEs). It’s often found in carbonatite deposits. It typically appears as yellow, brown, or reddish crystals and is a significant source of light rare earth elements, which have high-tech and industrial applications.
The mineral’s importance lies in its high concentration of rare earth elements. This makes it a crucial raw material for producing magnets, catalysts, batteries, and other advanced technologies.
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Saskatchewan processing helps fight China’s hold on market
NRCan is investing CAD$209,330 through the Critical Minerals Geoscience Data (CMGD) Initiative to help SRC create a publicly available database of mineral characteristics. This database will enhance the understanding of critical mineral deposits in Canada and help reduce mining waste.
Saskatchewan has gained international recognition for its mining and exploration. This growing acknowledgment also includes its role in critical minerals, including rare earth elements. These elements are critical for producing advanced technologies used in defense systems, renewable energy infrastructure, and various high-tech applications. The International Energy Agency predicts that demand for critical minerals to power the clean economy will double by 2030.
The province is on a short list of territories in North America where REEs are found. Furthermore, the scarcity of rare earth elements in North America presents significant national security concerns.
The reliance on foreign sources, particularly from countries like China, for the supply of REEs makes North America vulnerable to supply chain disruptions, geopolitical tensions, and economic coercion.
“The acquisition of bastnaesite from Northwest Territories secures the necessary resources for SRC’s Rare Earth Processing Facility to produce additional rare earth metals,” said Jeremy Harrison, the minister responsible for Saskatchewan Research Council.
A lack of domestic REE production capability could compromise the security and competitiveness of the region’s defense and technology sectors, making the development of local rare earth resources a strategic priority.
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