Canada to Unlock Critical Minerals Rare Earth Development in Northern Quebec and Labrador With New Funding
News release
December 20, 2024 Montreal, Quebec Natural Resources Canada
Investments in critical minerals infrastructure are essential for Canada to seize the enormous economic opportunity presented by the low-carbon economy and to capitalize on our rich mineral resources. Canada is well positioned to be a global leader and a first-class producer of a wide variety of critical minerals that are essential for powering the clean economy, strengthening national defense capabilities and ensuring national and economic security. By developing and expanding critical mineral value chains — from mining and processing to manufacturing and recycling — Canada can create good jobs, support economic opportunities and contribute to a resilient and secure future.
Today, the Honourable Jonathan Wilkinson announced up to $10 million in infrastructure funding, pending final due diligence, to Torngat Metals for its Strange Lake Northern Transportation Infrastructure Project.
With this funding, Torngat Metals will undertake pre-development activities related to the construction of a road of about 170-kilometres in northern Quebec and Labrador and new port facilities on the coast of Labrador. These activities will include engagement with Indigenous communities, environmental reviews and other planning and design work. This new access road will allow rare earth elements (REEs) mined in Nunavik, Quebec, to reach new port facilities in Labrador for onward shipping to separation and processing facilities.
These infrastructure improvements will serve Torngat Metals’ Strange Lake Rare Earth Project, with its globally significant quantities of heavy and light rare earths — namely dysprosium, neodymium, praseodymium and terbium — and help establish Canada as a leader in rare earths production and separation. REEs are necessary components in diverse industrial and high-technology applications, including electronics, clean energy, aerospace, automotive and defence. From everyday technologies like cellphones and computer hard drives, to defence applications like electronic displays, radar and sonar systems, REEs play a critical role in national security, clean energy and economic growth. 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.
Natural Resources Canada is providing this conditional funding to Torngat Metals through the Critical Minerals Infrastructure Fund (CMIF)’s pre-construction stream. The CMIF is a key program under the Canadian Critical Minerals Strategy to address infrastructure gaps, enable critical minerals production and connect resources to markets through various clean energy, electrification and transportation infrastructure projects. Additional funding decisions for projects under the CMIF to further critical minerals infrastructure developments are expected in the coming months.
As global demand for critical minerals is expected to double by 2040, Canada is uniquely positioned to benefit from this growing market: we are abundant in many critical minerals and have the workers, businesses and communities with the know-how to scale up the mining, processing and manufacturing of products and the recycling of these minerals responsibly. Critical minerals present a huge economic opportunity for workers — with the potential for hundreds of thousands of jobs to be created while stepping up to become the supplier of choice for our allies on the world stage and reduce our reliance on authoritarian governments.
Quotes
“This project, under the Canadian Critical Minerals Strategy’s flagship program, will help advance the development of the necessary transportation infrastructure to expand Quebec and Newfoundland and Labrador’s sustainable critical minerals production, notably rare earths that are used in electronics, clean energy, aerospace, automotive and defence. Developments like this help mines get built faster, and they are a key element in seizing the generational opportunity before us. The Government of Canada is supporting projects that strengthen Canada’s supply chains and foster economic growth while creating good jobs.”
The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources
“This investment in critical minerals infrastructure is vital for improving access to rare earth elements mined in northern Quebec. We’re supporting projects that will increase clean energy production and grow our economy.”
The Honourable Anita Anand
President of the Treasury Board and Minister of Transport
“I am pleased to see this significant investment in critical minerals infrastructure, which will create jobs and drive sustainable economic growth in Labrador. The Strange Lake Northern Transportation Infrastructure Project represents a key step in unlocking the immense potential of Labrador’s resources while prioritizing collaboration with Indigenous communities and environmental stewardship. This initiative highlights the important role Labrador plays in advancing Canada’s leadership in rare earth elements and securing a clean and prosperous future for all Canadians.”
Yvonne Jones
Parliamentary Secretary to the Minister of Northern Affairs and to the Minister of National Defence (Northern Defence) and Member of Parliament for Labrador
“We are thrilled to receive this pivotal support from NRCan, which underscores the strategic importance of our Strange Lake Project in addressing the global rare earth supply challenge. The Torngat Metals team is looking forward to collaborating with the Canadian, Quebec and Labrador governments to advance and accelerate the only project in North America ready to scale both heavy and light rare earth production, and supporting Canada’s leadership in key global supply chains.”
Dr. Dirk Naumann
President and CEO of Torngat Metals
Quick facts
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Canada has developed its own critical minerals strategy with the aim of advancing the development of these resources and related value chains to drive the transition to a low-carbon economy and support advanced technology and manufacturing.
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The Canadian Critical Minerals Strategy addresses five core objectives:
o supporting economic growth, competitiveness and job creation;
o promoting climate action and strong environmental management;
o enhancing global security and partnerships with allies;
o advancing reconciliation with Indigenous Peoples; and
o fostering diverse and inclusive workforces and communities.
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Canada’s whole-of-government approach to critical mineral development is collaborative, forward-looking, iterative, adaptive and long-term. The initiatives presented in the Strategy will be implemented and refined in collaboration with provincial, territorial, Indigenous, industry and other Canadian and international partners.
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The Critical Minerals Infrastructure Fund (CMIF) is a key program under the Strategy to support enabling clean energy and transportation infrastructure projects necessary to increase Canada’s supply of responsibly sourced critical minerals. The CMIF supports strategic priorities, such as decarbonizing industrial mining operations; strengthening supply chains through transportation infrastructure; and advancing economic reconciliation by supporting the participation of Indigenous Peoples in infrastructure and critical minerals projects.
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The Impact Assessment Agency of Canada (IAAC) has initiated an Impact Assessment of the Strange Lake Rare Earth Mining Project, which includes the mine site, new port facilities on the Labrador Coast and the access road proposed under this project. The Impact Assessment is expected to conclude in 2028. IAAC confirms that the early-stage activities to be funded by the CMIF would not overlap or interfere with the Impact Assessment.
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Natural Resources Canada
Media Relations
343-292-6096
media@nrcan-rncan.gc.ca
Joanna Sivasankaran
Director of Communications
Office of the Minister of Energy and Natural Resources
joanna.sivasankaran@nrcan-rncan.gc.ca
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