Government of Canada Announces $10 Million to Support Critical Minerals Mining in Northern Ontario

From: Natural Resources Canada

News release

June 10, 2024                                                        Sudbury, Ontario                                                        Natural Resources Canada

Critical minerals present a once-in-a-generation chance for Canada to drive historic economic growth, create jobs and support the fight against climate change. Already, mining and related industries employ more than 625,000 Canadians and contribute around $100 billion a year to Canada’s GDP, providing a strong supply chain and technical expertise we can leverage. As a global battery metals hub with the world’s largest integrated mining industrial complex and world’s second-largest nickel deposit, Northern Ontario is uniquely well positioned to seize this opportunity and become a key player as the shift to electric vehicles and other technology requiring nickel and other critical minerals grows.

Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced two investments of $5 million each to the Mining Innovation Rehabilitation and Applied Research Corp (MIRARCO) and Electra Battery Materials Corporation (Electra) to support the critical minerals sector in Canada, and in Northern Ontario specifically. These projects join nearly 130 mining projects under construction or planned over the next 10 years in Canada, representing a combined value of $93.5 billion, according to Natural Resources Canada’s Major Projects Inventory.

Funding to MIRARCO aims to advance technological readiness of the recovery of battery metals like nickel, cobalt and copper from mine tailings from the Vale and Glencore mines in the Greater Sudbury area, while reducing the long-term social and environmental costs associated with mine waste. Through this project, MIRARCO will directly feed into the battery supply chain, potentially unlocking significant amounts of nickel and cobalt in Sudbury, Ontario.

Funding to Electra will be used to advance the next phase of its battery materials recycling project. Electra is constructing North America’s only battery grade cobalt refinery, five hours north of Toronto, as part of a multiphase effort to build the North American supply chain for battery materials. Electra successfully ran a demonstration recycling program on a batch basis at this facility in 2023. Today’s funding advances the project, demonstrating the process on a continuous basis and showing that Electra’s proprietary technology is scalable, profitable and can be implemented at other locations. The battery materials recycling program will help conserve resources, reduce waste and reduce the environmental impact of battery production in North America’s critical minerals sector. Electra’s recycling program uses a new environmentally conscious process that will contribute to building a resilient Canadian electric vehicle battery supply chain.

For a historic mining nation like Canada — where we have residuals and tailings in communities across the nation — technologies like these present a significant opportunity to increase circularity in our economy and turn mining residuals and waste into an economic opportunity for Canadians. Funding for these projects comes from the Critical Minerals Research, Development and Demonstration (CMRDD) program. The CMRDD aims to support the development of innovative processing technologies for the critical minerals industry, which will help advance Canadian mining projects toward production and is part of Canada’s Critical Minerals Strategy

Creating domestic processing streams and developing further expertise within Canada will create and grow jobs and help us move toward a sustainable, prosperous low-carbon future. By making smart investments like those in MIRARCO and Electra, Canada is ensuring our natural resources, and the workers and economic benefits they bring to Northern Ontario and Canada, remain among the most sought after in the world, spurring innovation and helping us meet climate goals. We will continue to invest to advance Northern Ontario’s mining industry and fuel social and economic growth, while creating jobs and opportunities for families throughout the region.

Quotes

“Today’s total investment of $10 million to Electra and MIRARCO will help to advance the development of dynamic and competitive critical minerals value chains in Canada and Northern Ontario. This funding will increase mineral and energy security, create good jobs and support economic opportunities — supporting our work to build a cleaner Canada and a prosperous, sustainable economy that works for everyone.” 

The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources

“Our government is making transformative investments that will have an impact on every future generation. We recognize the time is now to invest in critical minerals. It’s about seizing this time of change and opportunity to create a prosperous economy for all. With these investments in MIRARCO and Electra, we are ensuring Canada remains a global leader in resource extraction and paves the way as we transition to a clean economy.”

Viviane Lapointe
Member of Parliament for Sudbury

"The increasing demand for critical minerals and the products made from them provides Nickel Belt – Greater Sudbury with another opportunity to highlight its industrial diversification, high-quality work force and sustainable development capabilities. Organizations like MIRARCO and Electra are at the forefront of the green transition and their work strengthens Canada's position as a leading global supplier of essential resources and clean technology. This is crucial for building a prosperous net-zero economy!"

Marc G. Serré
Member of Parliament for Nickel Belt, Parliamentary Secretary to the Minister of Energy and Natural Resources, and Parliamentary Secretary to the Minister of Official Languages

“On behalf of MIRARCO and our research collaborators, I am sincerely grateful to the Government of Canada for its generous funding and unwavering support. This $5-million investment will significantly enhance our collaborative efforts to advance bioleaching technologies, fostering sustainable and efficient recovery of battery metals from pyrrhotite-rich tailings. MIRARCO is committed to delivering these innovative solutions and training the future workforce to help Canada achieve a prosperous and sustainable low-carbon future.”

Nadia Mykytczuk, PhD
CEO and President, Mining Innovation Rehabilitation and Applied Research Corp.

“Today’s funding announcement is a clear signal from the Government of Canada of its ongoing commitment to creating a strong, sustainable EV supply chain. Our recycling project is part of the growth plan for our Ontario refinery complex, and we are thankful for this investment as it allows us to speed up the development of our proprietary critical minerals recycling technology. Electra’s battery recycling expertise can contribute to the production of clean, secure and ethically sourced materials for the EV supply chain in North America.

“Recycling of battery materials will become more critical as the EV industry expands within North America. We are strengthening our development timelines through our partnerships with government and industry, such as with Three Fires Group with which we are exploring developing a battery material shredding facility in Ontario. Our refinery is positioned to be the first-of-its-kind for recycling, a low-carbon hydrometallurgical black mass facility in North America and could provide recycling as a service to the many gigafactories coming to Ontario.”

Trent Mell
CEO, Electra Battery Materials Corporation

Quick facts

  • According to an independent ranking from BloombergNEF, Canada has surpassed China as the world’s most promising jurisdiction for manufacturing lithium-ion batteries such as those used in electric vehicles.

  • Funding for these projects comes from the Critical Minerals Research Development and Demonstration (CMRDD) program. The CMRDD aims to support the development of innovative processing technologies for the critical minerals industry, which will help advance Canadian mining projects toward production.  

  • To guide the advancement of our critical minerals supply chain and clean economy, the Government of Canada publishes a Critical Minerals List. Updated on June 10, 2024, the most recent list can be found here.

  • Budget 2021 provided $47.7 million to the CMRDD program to support the development of Canadian critical minerals value chains.

  • On September 29, 2023, the CMRDD program concluded its second call for proposals. Projects selected for this program will contribute to developing vital mineral resources and value chains that will facilitate the shift to a low-carbon economy and support advanced manufacturing and technology in an environmentally conscious manner.

  • Last month, we announced that $11 million from industrial pollution pricing proceeds will go to Glencore Canada Corporation to replace diesel-powered machinery with battery electric-powered equipment at the Craig Mine Onaping Depth Project in Ontario. The fully implemented project will result in a reduction of over 5,500 tonnes of greenhouse gas emissions in 2030. 

  • Funding for Electra builds on earlier investments in their project by the Federal Economic Development Agency for Northern Ontario in 2024 and 2020 to accelerate domestic production of battery-grade cobalt sulfate, a required element needed to produce long-range electric vehicles. 

Associated links

Contacts

Natural Resources Canada
Media Relations
343-292-6100
media@nrcan-rncan.gc.ca

Carolyn Svonkin
Press Secretary
Office of the Minister of Energy and Natural Resources Canada
343-597-1725 
carolyn.svonkin@nrcan-rncan.gc.ca

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