Ottawa offers small Canadian mining companies some relief in new round of critical minerals funding

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The $344-million unveiled at PDAC includes a small amount for embattled companies struggling to raise capital after the crackdown on China

The Canadian federal government is doling out $344-million as part of its long-term multibillion-dollar spending plan on critical minerals, including a small amount for embattled smaller mining companies who are struggling to raise capital after the crackdown on China.

Last year, federal industry minister François-Philippe Champagne ordered three Chinese state-owned firms to divest from Canadian lithium exploration companies. He also said that he would not allow any more investment by foreign state-owned firms into the Canadian critical minerals sector, unless there was exceptionally good reason to do so.

Mr. Wilkinson announced on Tuesday that Ottawa is providing $14-million in funding to be distributed among Sherritt International, E3 Lithium, FPX Nickel Corporation, Search Minerals, Geomega Resources and Prairie Lithium. The six were singled out because they are embarking on pilot studies that could lower the cost of production in critical minerals and reduce carbon emissions.

Just this week, the thorny issue of indigenous consent came to the fore with Ontario’s Neskantaga First Nationon the Ring of Fire battery metals project. Neskantaga said that the operator of the project, Australia’s Ring of Fire Metals, will have to use force if it wants to develop the nickel project located in the province’s far north.

 

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