Ontario’s efforts to approve major projects in under two years and keep more mineral processing within the province surprised industry leaders at The Northern Miner’s International Metals Symposium held in London.
“We’re moving quickly,” said provincial Energy and Mines Minister Stephen Lecce to enthusiastic conference attendees in early December. “One of our goals in Ontario is to put an end to shipping our raw materials out to other industrialized nations, only for them to create value-added jobs.”
Lecce’s comments kicked off a panel discussion about the province’s initial project under its One Project, One Process program: Frontier Lithium’s (TSXV: FL; US-OTC: LITOF) PAK project, which aims for processing in Thunder Bay. Panellist Mark Selby, CEO of Canada Nickel (TSXV: CNC; US-OTC: CNIKF), explained how their $3.5 billion (C$4.8 billion) Crawford project also includes local refining plans.
Ross Beaty, who founded Pan American Silver (TSX, Nasdaq: PAAS) and Equinox Gold (TSX, NYSE-A: EQX), expressed his surprise after hearing Lecce’s dual-focused approach.
“I’ve never heard a politician make such supportive comments as you did this morning about mining,” Beaty noted, having worked for many years across different jurisdictions globally. “We’re typically fighting with regulators and permitters everywhere we go. It’s just refreshing to hear this new perspective.”
Priority
The political commitment to emphasize mining investment comes at a time when Western governments are feeling pressure to secure domestic supplies of essential minerals and lessen dependence on China-based supply chains. There is also rising urgency for resource independence amidst trade tensions with Canada stemming from Trump administration tariffs.
Frontier’s PAK project in northwestern Ontario is expected to need around C$943 million for development and is intended as a 31-year operation producing spodumene concentrate that will be converted into battery-grade lithium chemicals. The company hopes for a final investment decision within this decade and aims for first production by early 2030s.
“It made sense to reach ‘yes’ on this project,” Lecce stated. “It encompasses a large mine along with milling and downstream conversion processes. It represents the complete production ecosystem here in the province.”
Selby mentioned that Canada Nickel’s Crawford nickel sulphide project near Timmins aligns with similar logic since it holds one of the largest undeveloped nickel deposits worldwide. Crawford has been nominated for Ottawa’s Major Projects Office designation, which is meant to streamline permitting and funding for important national developments.
“What we really hope for are two things from the federal designation,” Selby remarked regarding financing and permitting support. “Our goal right now is breaking ground by Christmas time 2026.”
Financing
Canada Nickel plans to fund the approximately $2 billion first stage of its Crawford project through various cornerstone investors, government incentives, and $1 billion already secured through debt financing with Export Development Canada among others.
Strategic shareholders include Agnico Eagle Mines (TSX, NYSE: AEM), Anglo American (LSE: AAL), and Samsung SDI. The South Korean firm would get up to 30% of production off-take in exchange for 10% equity at the project level while federal investment tax credits could cut down equity needs by up to US$600 million according to Selby.
The remaining equity requirement stands at about US$300 million he indicated, alongside potential additional funding of US$100 million to US$200 million from various government programs.
The available programs feature Canada’s 30% refundable tax credit on critical minerals plus an incentive related to carbon capture offering up to 50% back on eligible expenses-reflecting Crawford’s aim for permanent storage of up to 1.5 million tonnes of carbon dioxide each year.
Indonesia
This contrasts sharply with today’s supply sourced mainly from Indonesia-the world’s leading nickel producer-where coal-powered laterite processing financed by Chinese investments has led rapid growth but carries significant environmental drawbacks.
Beaty expanded upon the topic arguing that it goes beyond just nickel issues since China dominates production or processing across most industrial metals including copper, aluminum, lithium, cobalt, and manganese due largely low-cost energy combined with decades-long state-supported investments.
“How can our smelters compete against China on cost?” Beaty questioned pointing out it remains a challenging issue without considerable government backing which tends not remain sustainable if political policies shift over elections.
Power grid
Lecce mentioned that Ontario aims at tackling these structural challenges through an integrated plan linking mining activities alongside energy generation infrastructure development efforts statewide-the province has committed towards laying down 1,500 km of new transmission lines in northern regions while pushing forward plans associated hydropower or nuclear power enhancements aimed supporting upcoming mines & processing facilities located there too.
He noted increasing interest from allied countries such as U. S., seeking high-grade nickel supplies necessary both industrially & militarily-which further strengthens positions regarding proposals like Crawford.
Selby added current signs show differentiation occurring within North America particularly surrounding nickel markets where premiums reflect local supply conditions , product forms & sustainability aspects. Furthermore he pointed out European markets’ impending carbon border measures linked steel manufacturing should promote demand lower-emissions varieties overtime.
Although challenges still persist especially concerning global pricing dynamics along competition posed state-backed producers , Selby emphasized progress being made towards implementation rather than mere discussions taking place. Meanwhile Beaty described recently launched initiatives via Ontarios new methods resonated positively adding he wished was developing another mine there currently saying they’ve had great experiences throughout operations till date!
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