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The Canadian government is injecting cash into a private mining company to bring their rare earth project closer to production. But, why?
What’s happening:
- Torngat Metals has landed $165M CAD in new funding from the Canadian government to advance exploration at their flagship rare earth project Strange Lake located in Northern Quebec
By the numbers:
- $110M CAD has been committed as a bridge loan to Torngat Metals from Export Development Canada
- The Canada Infrastructure Bank has also committed $55M CAD as a loan
Why it matters:
- Strange Lake is one of the single largest rare earth deposits in the entire world and contains significant quantities of heavy rare earths that are critical for electric vehicles and wind turbines, including dysprosium and terbium
Going deeper:
- The new funding from the Canadian government will mainly be focused on pre construction, engineering and permitting to bring Strange Lake closer to being able to go into full scale production
- Rare earth elements have continued to come into major focus in geopolitics lately, which has been largely fuelled by China’s restrictions around exporting rare earths and the United States of America launching a formal investigation into ways to reduce the risks of relying on foreign countries for the supply of rare earth elements
The intrigue:
- The United States Export-Import Bank also just recently made waves on Wall Street when they gave a letter of interest for a $120M USD loan to Critical Metals (NASDAQ: CRML) to advance their Tanbreez Project located in Greenland, which is widely considered to be one of the most important rare earth deposits outside of North America
