The company behind a proposed critical minerals project in the NWT says it is getting new funding from the Canadian and US governments.
Fortune Minerals plans to develop the Nico mine, a proposed cobalt, gold, bismuth and copper project outside of Whatì.
On Thursday, it announced that the Canadian government had agreed to provide up to $7.5 million to fund engineering and test work for the project while the US government will provide $8.74 million (in Canadian dollars) to expand the domestic capacity and production of cobalt.
The world’s current supply of cobalt, which is used in lithium-ion batteries, is largely reliant on production in the Democratic Republic of the Congo and refinement in China. Fortune said the Nico project will help reduce that reliance and strengthen the supply chain for metals used in new technologies.
“Today’s investment in Fortune Minerals Limited will help advance supply chain resilience and create job opportunities in Canada – all part of our work to build a prosperous and sustainable Canadian economy that benefits everyone,” Jonathan Wilkinson, Canada’s minister of energy and natural resources, said in a statement.
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Robin Goad, president and chief executive officer of Fortune, said the company is grateful for the funding as it has faced challenges attracting investment in critical minerals through traditional capital markets.
Plans for the Nico project include development of an open pit and underground mine along with a concentrator in the NWT as well as a hydrometallurgical refinery in Alberta.
Fortune projects that during its life, the mine will produce an average of 1,800 metric tonnes of cobalt, 1,700 tonnes of bismuth, 300 tonnes of copper and 47,000 troy ounces of gold.
