A tanker fills up at an LNG Canada facility in Kitimat, B.C., on Thursday.ETHAN CAIRNS/The Canadian Press
Prime Minister Mark Carney has unveiled the second round of projects to be considered for fast-track approval because of their perceived national importance. All the projects announced Thursday are related to energy and critical minerals mining, resources that are considered vital to future trade and industrial needs.
But not all the projects are going swimmingly. One is entangled in opposition from neighbouring First Nations. At least one has faced a long delay. And some just need a lot of money.
Here are roundups of the strengths and weaknesses of the projects that made the second round and are being referred to the Calgary-based Major Projects Office. The office was set up to speed along infrastructure and resource development proposals, as part of Mr. Carney’s efforts to deliver on his campaign promise to reduce Canada’s economic reliance on the United States amid President Donald Trump’s trade war.
LNG project faces Indigenous opposition
The Nisga’a Nation-backed Ksi Lisims LNG project is a planned export terminal that would enable liquefied natural gas to be sent from northwest British Columbia. But the project has faced opposition from nearby Indigenous groups and climate activists.
Construction costs alone for Ksi Lisims are expected to reach $10-billion, plus another $12-billion for the Prince Rupert Gas Transmission (PRGT) pipeline project, which would transport natural gas more than 750 kilometres from northeast B.C. to Pearse Island located on Nisga’a territory. Two floating production platforms are to be constructed in South Korea for Ksi Lisims, while various other LNG infrastructure would be built in B.C.
Ksi Lisims would rely on natural gas from PRGT, which is co-owned by the Nisga’a and Houston-based Western LNG.
The Nisga’a, Western LNG and a group of natural gas producers named Rockies LNG are partners in Ksi Lisims.
Shell PLC-led LNG Canada started shipping natural gas in liquid form to Asia from Kitimat, B.C., in June, when it became the country’s first LNG export terminal.
Ksi Lisims is facing two separate legal challenges in Federal Court, with one launched by the Lax Kw’alaams Band and the other by the Metlakatla First Nation from the Prince Rupert area.
Other Indigenous representatives in northwest B.C. who oppose LNG include Gitanyow hereditary chiefs.
The dispute risks escalating into a repeat of the conflict over the Coastal GasLink pipeline.
A group of Wet’suwet’en Nation hereditary chiefs has led a campaign opposing Coastal GasLink, the first export pipeline for natural gas across northern B.C., which is supplying gas to the LNG Canada site in Kitimat.
John Ridsdale, a climate activist whose Wet’suwet’en hereditary chief name is Na’Moks, is among the Indigenous leaders who opposed Coastal GasLink and is now also criticizing Ksi Lisims and PRGT.
– Brent Jang
Northern B.C. transmission line still requires financing
A worker walks in the BC Hydro Skeena Substation while under construction in Terrace, B.C., on Thursday.ETHAN CAIRNS/The Canadian Press
BC Hydro’s North Coast Transmission Line (NCTL) project would effectively twin the existing 450-kilometre transmission route in British Columbia from the Williston substation near Prince George to the Skeena substation near Terrace.
Details yet to be worked out include how the $6-billion in capital costs would be financed.
BC Hydro has said that it would normally take eight to 10 years to devise and construct a major transmission project, in collaboration with First Nations. The hope is that the timing could be fast-tracked so that the first phase might be completed by 2032, with construction starting in 2026.
With the eventual addition of spur lines, the goal is to supply or increase electricity to B.C. customers such as the Port of Prince Rupert, mining companies and the proposed Ksi Lisims LNG project.
North Coast B.C. electrification
Study areas for transmission projects
Prince George
to Glenannan
1. The proposed transmission line routes have not been determined. Where possible, they are expected to be adjacent to existing lines.
2. Future transmission lines’ voltage not yet determined.
North Coast B.C. electrification
Study areas for transmission projects
Prince George to Glenannan
1. The proposed transmission line routes have not been determined. Where possible, they are expected to be adjacent to existing lines.
2. Future transmission lines’ voltage not yet determined.
North Coast B.C. electrification
Study areas for transmission projects
Prince George to Glenannan
1. The proposed transmission line routes have not been determined. Where possible, they are expected to be adjacent to existing lines.
2. Future transmission lines’ voltage not yet determined.
“The North Coast Transmission Line is a once-in-a-generation opportunity to drive economic growth in B.C.’s Northwest – powering traditional industries and unlocking new ones,” B.C. Energy Minister Adrian Dix said in a statement on Thursday.
The Canada Infrastructure Bank, a federal Crown corporation, said on Thursday that it has finalized a $139.5-million loan to BC Hydro to help back early activities on NCTL.
In September, Ottawa referred the concept of the “northwest critical conservation corridor” in B.C. to the Major Projects Office for consideration. The corridor would support development such as projects for critical minerals and hydroelectricity.
“We’re ready to build the infrastructure that will support jobs, attract investment and deliver clean, reliable energy to fuel B.C.’s next chapter,” BC Hydro president Charlotte Mitha said in a news release.
– Brent Jang
Nickel project in Northern Ontario with a US$2-billion price tag
Canada Nickel Co.’s Crawford Nickel Project is touted as the world’s second-largest nickel-sulphide reserve. The junior miner has been working to advance the development, located 42 kilometres north of Timmins, Ont., since acquiring it in 2019.
With a price tag of more than US$2-billion, the project is aimed at supplying the electric vehicle and stainless steel markets with nickel as well as chromium, cobalt, platinum and palladium over its 41-year life. The development will include ore crushing and processing facilities as well as carbon-removal in the form of tailings carbonization technology that could store 1.5 million tonnes of carbon per year.
The government’s referral of the Crawford project to the Major Projects Office will help attract international investors and potential offtake partners to chip in for construction as well as put its remaining permits in the priority line, Canada Nickel chief executive Mark Selby told reporters on Thursday. In addition, it can help the company take advantage of other government programs as it nears construction, he said.
To help stay afloat during the mine planning and permitting stages, Canada Nickel sold equity stakes in the company to Agnico Eagle Mines Ltd., South Korea’s Samsung SDI, British Anglo American PLC and Taykwa Tagamou Nation. The company also has benefits and contracting agreements with the Mattagami, Matachewan, and Flying Post First Nations.
Its funding plans include $1-billion of equity, including federal refundable tax credits and carbon capture and storage tax credits worth more than US$600-million, $100-million from exercise of a Samsung SDI offtake option, up to $300-million from federal and provincial and well as G7 sources.
It is also planning on US$500-million of debt financing from Export Development Canada, $500-million from another Canadian government institution and any remaining needs from private investors.
– Jeffrey Jones
Bid to disrupt China’s dominance in graphite mining
Nouveau Monde Graphite Inc. is developing its Matawinie Mine 120 kilometres north of Montreal. Expected to come online in 2027 or 2028, it is slated to produce roughly 106,000 tonnes of graphite concentrate annually over its 25-year life. Natural flake graphite is used in lithium ion battery anodes, fuel cells, aerospace components and advanced coatings for defence and infrastructure.
The Quebec government in 2021 issued authorization for Matawinie. NMG is now advancing financing discussions toward a final investment decision on the second phases of both the mine and the company’s Bécancour Battery Material Plant, which will process graphite from Matawinie.
NMG is being included on the major projects list after Ottawa signed an offtake agreement with the company for 15,000 tonnes of graphite concentrate each year. The government plans to stockpile the product to challenge China’s dominance of the industry. Another 15,000 tonnes will be offered to allied countries or companies.
Tim Hodgson, Minister of Energy and Natural Resources, announced the agreement on the sidelines of the G7 Energy and Environment Ministers Summit in Toronto last month.
Eric Desaulniers, NMG chief executive, told media Thursday that Canada is the only G7 supplier of graphite. Dominic LeBlanc, Minister of Internal Trade, added that including NMG on the major projects list sent a “very strong signal about the potential of this project for Canada’s economy and for Canadian sovereignty.”
“Once the mine and the plant are operational, Canada will be able to secure a supply of a critical mineral, which is an essential component in clean energy technologies like electric vehicle batteries and energy storage systems,” he said.
The company has also secured commercial offtake agreements with Panasonic Energy Co. and Traxys North America LLC, and is in negotiations with an unnamed established anode manufacturer, according to its website. Together, those deals and the one with Ottawa would cover almost all of the flake graphite that would be produced by the second phase of the Matawinie mine.
– Emma Graney
New Brunswick tungsten project has been stalled for a decade
The Northcliff Sisson project is a New Brunswick tungsten-molybdenum mine that, according to a 2013 feasibility study, will haul 30,000 tonnes of ore out of the ground per day, drawing from one of the largest tungsten deposits in the world.
The project will include on-site processing and is expected to employ approximately 200 to 300 people, with a mine lifetime of 27 years.
“These are very important critical minerals that can shape the future of Canada and its allies,” said Andrew Ing, chief executive of Northcliff Resources Ltd., in an interview.
Tungsten production is dominated by China, which produces 80 per cent of global supply. There are no producing tungsten mines in Canada or the U.S. In February, Beijing added the critical mineral to its export restriction list, sending prices higher and sparking questions about mineral sovereignty.
But the Sisson project has been stalled at the pre-construction phase for over a decade.
The project has struggled to secure private investment, Mr. Ing said. China can flood the market to keep competition out and this deters investment.
Mr. Ing is hoping Ottawa will follow this announcement with price-floor guarantees for tungsten.
In October, G7 environment ministers gathered in Toronto unveiled a Canada-led critical minerals pact that will involve purchase agreements, price floors and stockpiling of critical minerals.
Without follow-through on the price floors and purchase agreements for tungsten, the project is unlikely to get off the ground, said Brian Buss, a mining consultant who specializes in financing.
“The model China uses currently is the model North America will need to adopt,” he said.
In the past seven months, the Sisson project has received $29-million in combined funding from the Canadian and U.S. governments. These funds will go toward updating the original 12-year old feasibility study, which should be completed in the second quarter of 2026, Mr. Ing said. Construction is expected to begin mid-2027 and last two years.
New Zealand-based, family owned conglomerate the Todd Corporation is the primary shareholder of Northcliff Resources Ltd. The Todd Corporation also has a 11.5-per-cent direct stake in the Sisson project.
– Kate Helmore
Inuit-owned hydro project aims to stabilize electricity costs
The notion of building hydroelectric dams near Iqaluit, the largest community in Nunavut with a population of about 7,400, first surfaced two decades ago, but progress has been elusive. The latest proposal, backed by an Inuit-owned developer, was referred to the Major Projects Office Thursday.
Nunavut Nukkiksautiit Corp. (NNC) aims to build a hydroelectric dam in a remote location along the Kuugaluk River, about 60 kilometres northeast of the community. With a proposed capacity between 15 and 30 megawatts, it’s expected to cost around $500-million. It would be among Canada’s northernmost hydroelectric dams.
“This is a breakthrough for Arctic sovereignty and sustainability,” Mr. Carney asserted Thursday. “It will save $1.9-billion in diesel costs over the next 50 years, while providing affordable, reliable, emission-free power.”
Earlier this year, the territorial government identified the project as one of four priority projects it urged the federal government to back. The Canadian Northern Economic Development Agency committed up to $6-million in February to support the early engineering work, following on $7-million provided by the Northern Affairs department in 2021.
Sprawling and thinly populated, Nunavut lacks a territorial power grid: each community is served by its own distribution system and a diesel-powered power plant. The cost and logistical challenges associated with shipping diesel high into the Arctic contribute to some of the country’s priciest power bills.
The developer says the project would stabilize and possibly reduce electricity prices, while also eliminating air pollution and odour; Iqaluit’s diesel plant would remain in service for backup and emergencies.
“We’ve heard loud and clear from Inuit that they’ve been waiting a long time for renewable energy to come to Nunavut,” said Jess Puddister, NNC’s manager of strategy and operations.
“Inuit are really tired of having to be diesel-dependent. It’s not something they ever asked for in the first place.”
NNC said earlier this year it planned to make a final investment decision in 2029; construction could commence in 2030. Ms. Puddister said that with additional funding and quicker data collection for the project, it might begin as early as 2028.
Crown utility Qulliq Energy Corp. is the territory’s sole electricity provider. It considered a hydro project around Iqaluit in 2005, eventually proposing a 12.5-megawatt dam at Jaynes Inlet, 60 kilometres southwest of the city. But Qulliq, which operates about two-dozen aging diesel generators, couldn’t finance the project and put it on hold in 2014.
NNC is now negotiating a power purchase agreement that will determine how much electricity Qulliq will agree to buy from the project, at what price and on what terms. Ms. Puddister said her company expects to provide an update on those talks by the end of this year.
– Matthew McClearn