The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Mining Explorers 2024 - January 15, 2025
Whitehorse-based Solvest Inc. and Indigenous-owned Tlicho Investment Corp. began construction of the Diavik solar farm in February.
The 6,620-panel facility at Diavik is expected to generate 4.2 million kWh of solar energy annually.
A seasonal ice road built over the Great Slave Lake in Northwest Territories each year.
Researchers collect soil samples after a 2014 wildfire, similar to steps taken following the 2023 Northwest Territories wildfires, which have led to concerns over potentially high arsenic levels in 2024.
Downtown Yellowknife, the capital of Northwest Territories, captured in 2019, showcasing the city's role as the administrative and economic heart of the region.
Navigating both adversity and opportunity, 2024 marked a turning point for the Northwest Territories as it faced a balancing act – leveraging its rich mineral potential to drive economic growth while addressing the vulnerabilities of a warming climate and the logistical hurdles of developing remote, underfunded infrastructure. Nonetheless, strategic investments in governance, infrastructure, and community partnerships demonstrated a commitment to unlocking the North's potential, setting the stage for a prosperous future for the territory.
In response to the growing demand for critical minerals essential to the global energy transition, Northwest Territories made deliberate moves last year to establish itself as a central player in Canada's critical minerals landscape.
Recognizing the opportunity presented by its vast reserves of rare earth elements – particularly neodymium and praseodymium – as well as other critical minerals such as lithium, cobalt, zinc, and nickel, the territory swiveled its focus to bridge the gap between its mineral wealth and the infrastructure needed to harness it.
This effort involved groundwork to modernize key transportation routes crucial for accessing remote mineral-rich areas, supporting community development to improve local economic and social infrastructure, exploring the potential and viability of renewable technologies, and building strategic partnerships with Indigenous governments, industry leaders, and federal entities to support sustainable growth.
Determination to harness its mineral wealth in 2024 involved not only resource exploration but also collaborations aimed at maximizing community benefits. Federal investment, particularly through the Mining Incentive Program (MIP), spurred exploration activities targeting the minerals that have rapidly become central to national strategic interests.
Cooperation between federal and territorial governments, alongside meaningful partnerships with Indigenous communities, led to the launch of localized projects aimed at fostering skill development and generating employment opportunities, particularly in mining and related industries.
These combined initiatives reflected a broader commitment to revitalizing the region's economy while ensuring local communities directly benefited from the territory's resource development.
The reality of environmental and infrastructural challenges became even more apparent in 2024, as unusually warm winter conditions led to significant delays in the opening of several of the territory's essential winter roads. These delays disrupted crucial connections, delaying the transportation of supplies and heavy equipment to remote communities and mining operations, which rely on these seasonal routes for access during the winter months.
Meanwhile, undertakings aimed at mitigating these challenges, like investments in renewable energy projects and upgrades to critical local infrastructure, reflected an awareness that sustainable growth requires strengthening the foundation upon which communities and industries can thrive.
Investments in clean energy projects for remote communities, such as solar panels in Sachs Harbour and the completion of Rio Tinto's 3.5-megawatt solar power plant at the Diavik Diamond Mine, are examples of ongoing work to reduce reliance on fossil fuels and support the broader energy transition in the North.
"The Northwest Territories is charting a path forward that balances economic development with sustainability, ensuring our communities not only survive but thrive in an evolving landscape," said Northwest Territories Premier RJ Simpson penned in an op-ed piece for iPolitics. "By embracing our unique strengths and investing in our people, infrastructure, and partnerships, we can build a future where prosperity is shared by all."
During 2024, Northwest Territories made a decisive push to advance its role in critical mineral supply chains, reflecting its ambition to become a major hub for the materials essential to renewable energy and sustainable technologies.
As the world pivots toward greener technologies, NWT leveraged its unique mineral wealth, fostering new exploration projects and securing investments that emphasized its strategic importance.
This renewed focus brought tangible progress, with numerous exploration initiatives underway and significant federal and private funding bolstering the development of rare earth elements, lithium, and other essential minerals.
Companies such as Li-FT Power Ltd., which reported its maiden resource estimate for its lithium project, exemplified this momentum. Avalon Advanced Materials Inc. continued its exploration for lithium-tantalum resources at the Lilypad project while Fortune Minerals Ltd. made strides in the development of the NICO cobalt-gold-bismuth-copper project, backed by joint investments from both the Canadian and U.S. governments.
Federal programs like MIP provided a tangible boost, with roughly C$1.5 million (US$1.1 million) in funding allocated across 12 projects and six individual prospectors in 2023-2024.
Recipients included companies such as Erex International Ltd., Lake Winn Resources Corp., STLLR Gold Inc., and North Arrow Minerals Inc., which collectively received substantial support to advance exploration initiatives for lithium, rare earth elements, and other critical minerals.
In addition to MIP, the federal government introduced several other initiatives specifically aimed at fostering the growth of critical mineral development in the Northwest Territories.
The Critical Minerals Infrastructure Fund (CMIF) provided essential funding for infrastructure improvements to enhance the connectivity and accessibility of remote mineral-rich areas, supporting transportation routes and clean energy projects crucial for advancing mining activities.
This included funding for the Taltson Hydro Expansion Project, which aims to connect ten NWT communities and over 70% of the population to a unified hydro grid, ultimately stabilizing energy costs and providing clean power for mining activities.
Additionally, the Slave Geological Province Corridor, in conjunction with the proposed Grays Bay Road and Port Project, aims to enhance access to mineral-rich areas through improved transport infrastructure, facilitating further development.
Moreover, the Critical Minerals Research, Development, and Demonstration (CMRDD) Program played a key role by investing in projects aimed at developing and demonstrating innovative extraction and processing technologies.
This included funding efforts targeting battery minerals and lithium extraction, which are vital to secure a stable supply chain for renewable energy technologies. One notable example is the support provided to the Saskatchewan Research Council (SRC) to expand its rare earth processing facility in Saskatoon. This facility has become an increasingly crucial part of the growing domestic supply chain for rare earth elements, producing metals like neodymium and praseodymium, which are essential for electric vehicle motors and wind turbine generators.
Additionally, the facility received funding to enhance its ability to separate and process dysprosium and terbium, rare earths that add heat resistance and durability to magnets used in renewable energy technologies.
Finally, the Indigenous Natural Resources Partnerships (INRP) Program also provided a significant boost to critical minerals initiatives. Notably, approximately C$5 million (US$3.7 million) in funding was allocated to the Denendeh Exploration and Mining Company Ltd. (DEMCo) to advance exploration at the Camsell River site, promoting Indigenous ownership and capacity building in the natural resources sector.
This funding underlined the importance of Indigenous partnerships in driving sustainable and inclusive growth within the critical minerals industry.
The strategic initiatives undertaken in 2024 have firmly set the Northwest Territories on a path toward becoming an essential link in the critical mineral supply chain. With growing exploration efforts, enhanced infrastructure, and strong partnerships with Indigenous communities, NWT is moving beyond its role as a source of raw materials and is positioning itself to play a pivotal role in a sustainable future for critical minerals in Canada.
As mineral exploration continues, the focus on advancing local processing capabilities will be key, ensuring NWT's contributions extend beyond extraction to refining and value addition, thus capturing more of the critical mineral value chain within the territory.
Downtown Yellowknife, the capital of Northwest Territories, captured in 2019, showcasing the city's role as the administrative and economic heart of the region.
A shared commitment to advancing the Northwest Territories has brought Indigenous communities, government bodies, and mining companies closer together, building partnerships rooted in collaboration and mutual benefit.
These alliances go beyond economic opportunity and represent a unified approach to fostering sustainable growth while respecting and empowering local communities.
These partnerships are transforming the critical mineral landscape in the territory, ensuring that development reflects the interests of all stakeholders and contributes to a thriving, inclusive future.
One prominent example of these collaborative partnerships is the funding provided to DEMCo, which received roughly C$5 million (US$3.7 million) in funding through the Indigenous Natural Resources Partnerships (INRP) Program.
This funding supports exploration at the Camsell River site, located in the central Northwest Territories near the historic Camsell River, which flows from Great Bear Lake and holds significant mineral potential, including iron-oxide-copper-gold (IOCG) deposits. This exploration initiative also aims to reclaim and develop a previously underexplored site, emphasizing local community involvement in resource extraction.
Similarly, the completion of the Tlicho All-Season Road (TASR) represents a successful partnership between the Tlicho Government and Northwest Territories.
This road aimed to improve access to mineral-rich regions such as the Slave Geological Province, which is home to major mining projects like the Nechalacho rare earth elements project and the NICO cobalt-gold-bismuth-copper project.
Constructed with the involvement of local labor, the project created numerous job opportunities and provided a boost to the regional economy, directly benefiting the Tlicho people. Beyond its economic impact, the TASR enhances year-round connectivity to communities that were previously isolated during the winter season, significantly improving the quality of life for residents.
This increased accessibility also facilitates greater exploration and development of nearby mineral resources, demonstrating how well-planned infrastructure projects can simultaneously uplift local communities and support the growth of the mining industry.
At the Nechalacho rare earth mine, Vital Metals Ltd. partnered with the Yellowknives Dene First Nation to ensure that local communities are directly involved in its development. This partnership focuses on local employment and benefit-sharing agreements, ensuring that the Yellowknives Dene play a key role in one of the region's most promising critical mineral projects, thus prioritizing community interests in the project's progression.
Additionally, Fortune Minerals Ltd.'s NICO project, which is exploring for cobalt, gold, bismuth, and copper, has benefited from joint investments by Natural Resources Canada and the U.S. Department of Defense. This project has relied heavily on Indigenous engagement to ensure that the economic and environmental impacts align with the interests of local communities, illustrating the importance of collaborative development efforts.
These examples reflect the growing partnerships between Indigenous communities, mining companies, and government bodies. By working together, they are ensuring that the Northwest Territories' critical mineral sector develops sustainably and inclusively, with lasting benefits for all involved.
While the Northwest Territories have made significant strides in improving infrastructure and advancing economic opportunities, 2024 was also marked by substantial challenges that highlighted the difficulties of fostering growth in such a remote and unforgiving environment.
The 2023 wildfires were among the worst that the Northwest Territories had experienced in recent memory, impacting roughly 70% of the population. Vast areas of the territory were engulfed in flames, leading to large-scale evacuations that disrupted communities, mining operations, and critical infrastructure.
Researchers collect soil samples after a 2014 wildfire, similar to steps taken following the 2023 Northwest Territories wildfires, which have led to concerns over potentially high arsenic levels in 2024.
And while the fires have long since been extinguished, the aftermath of such extensive devastation presented an entirely new set of problems.
One of the pressing issues has been the risk of arsenic contamination in areas surrounding Yellowknife, where past mining activities left behind hazardous waste now disturbed by the fires. With the protective layers of soil and vegetation burnt away, arsenic is at risk of leaching into the environment, posing a serious threat to both human health and wildlife.
Following the findings, the Northwest Territories government, in collaboration with federal authorities, initiated emergency measures to monitor and manage the situation.
While initial efforts aimed at containing the risk were implemented, the situation remained under close watch, with ongoing work needed to fully address the long-term environmental and health impacts.
In addition to the aftermath of the wildfires, another pressing issue that highlights the instability of infrastructure in the Northwest Territories is the reliance on winter roads.
Access to remote communities and mining projects in the territory often depends on these seasonal roads, which are built on ice and frozen ground and are crucial for transporting supplies, heavy equipment, and fuel to areas that are otherwise inaccessible for much of the year.
However, the warming climate has increasingly shortened the timeframe during which these roads can be used, sometimes reducing access by weeks.
The 400-kilometer (250 miles) winter road connecting the Ekati, Diavik, and Gahcho Kué diamond mines in the North Slave Region to supply hubs further south, is reconstructed each year over 64 frozen lakes and stretches of tundra.
A seasonal ice road built over the Great Slave Lake in Northwest Territories each year.
This essential route enables the transport of critical supplies such as diesel and dynamite, necessary for sustaining mining operations. The road, which costs approximately C$25 million (US$18.54 million) to maintain annually, saw a significant delay in its opening in 2024 due to an unusually warm winter.
In addition to delays faced by winter roads connecting the diamond mines and remote communities, the Slave Geological Province Road also experienced significant impacts due to the warm winter of 2024.
This road serves as a vital connection for multiple mining exploration projects, including those led by Northern Critical Minerals Corp. and Voyageur Exploration Ltd. for rare earth elements, Prestige Lithium Inc. and Ant Lithium Corp. for lithium, and Rover Metals Corp. for various base metals.
Another significant winter road that experienced delays in 2024 was the Tibbitt to Contwoyto Winter Road, a route critical for transporting supplies to both mining and exploration sites further north. This road, which spans over 600 kilometers (373 miles) and serves as the only reliable land-based access for several operations, faced a later-than-usual opening due to persistent warm temperatures.
The delay affected the movement of essential goods and heavy equipment for projects such as those at the Lupin Gold Mine and Jericho Diamond Mine, highlighting the ongoing challenges faced by the mining sector in maintaining stable supply lines amidst changing climate conditions, directly impacting operational timelines and cost management for companies relying on this vital seasonal infrastructure.
Although faced with numerous difficulties, Northwest Territories remained focused on building a stable future, taking substantial strides toward sustainability. By integrating renewable energy into its mining operations, the region continues to reduce its carbon footprint, reflecting a broader commitment to sustainable growth despite the difficulties faced.
One of the most notable initiatives was Rio Tinto's completion of a 3.5-megawatt solar power plant at the Diavik Diamond Mine. This new solar installation is the largest off-grid solar power facility in Canada's North and a significant milestone in advancing clean energy in the resource sector.
The 6,620-panel facility at Diavik is expected to generate 4.2 million kWh of solar energy annually.
Consisting of 6,620 bifacial solar panels, capable of harnessing both direct sunlight and sunlight reflected off the snow-covered ground during winter – a feature that maximizes energy production in the Arctic environment – the facility is expected to generate approximately 4.2 million kilowatt-hours of clean electricity per year, which will reduce the mine's diesel consumption by about one million liters annually and decrease greenhouse gas emissions by 2,900 metric tons of CO2-equivalent. This reduction is equivalent to taking around 630 cars off the road each year.
Supported by a C$3.3 million (US$2.5 million) grant from the Northwest Territories' Large Emitters GHG Reducing Investment Grant Program, and an additional C$600,000 (US$446,874) from Canada's Clean Energy Electricity Investment Tax Credit, the solar installation underscores the ongoing commitment to mitigating climate impacts while supporting mining operations.
This plant also complements the existing 55.4-megawatt wind-diesel hybrid power facility, which has generated over 195 million kilowatt-hours of electricity since its commissioning in 2012.
Together, the solar and wind facilities at Diavik form a cornerstone of Rio Tinto's decarbonization initiatives, aligning with its global goal of reducing Scope 1 and Scope 2 emissions by 50% by 2030 and achieving net-zero by 2050.
The solar project at Diavik also exemplifies collaboration between mining companies, local governments, and Indigenous organizations. Construction of the plant involved Whitehorse-based Solvest Inc. and Tlicho Investment Corp., with approximately 30% of the construction workforce sourced from the Tlicho community.
This collaborative effort highlights Rio Tinto's commitment to involving Indigenous communities in its renewable energy endeavors, ensuring that benefits from such initiatives extend beyond the immediate mining operations.
Moreover, discussions are underway regarding how this renewable infrastructure might be utilized to benefit the region following the mine's eventual closure, ensuring a lasting legacy of sustainability and community support.
In addition to Diavik's renewable energy advancements, another significant development in 2024 involved plans for a large-scale renewable energy project at Hay River Harbour.
This proposed solar farm aims to generate clean energy that would reduce the reliance on diesel fuel, provide renewable electricity for local communities, and support industrial activities in the region.
The project, though still in the proposal stage, symbolizes the Northwest Territories' ongoing effort to build a more sustainable future through renewable energy integration.
These renewable energy projects, spearheaded by both industry leaders and community partnerships, showcase the Northwest Territories' dedication to transitioning toward greener energy solutions.
By investing in renewable energy for mining operations and community projects, the territory is not only cutting emissions and reducing reliance on fossil fuels but is also building a more resilient and sustainable economic foundation for future generations.
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