Vital MetalsSA国际影视传媒� future in the Northwest Territories is unclear, but the companySA国际影视传媒檚 plan to focus on the Tardiff deposit at Nechalacho remains promising, according to Tom Hoefer, executive director of the NWT and Nunavut Chamber of Mines.
SA国际影视传媒淚tSA国际影视传媒檚 a significant deposit, and itSA国际影视传媒檚 much bigger than the one they test mined,SA国际影视传媒� Hoefer said. SA国际影视传媒淪o thatSA国际影视传媒檚 the prize, I would say SA国际影视传媒� at this point, anyway.SA国际影视传媒�
Australian-owned Vital Metals commenced operations at Nechalacho in 2021. The site, which sits about 100 kilometres southeast of Yellowknife, produces rare earth elements (REE), critical minerals used in electronics, green energy, automotive, aerospace, military defence and more.
Until recently, Vital Metals had plans to build a processing facility in Saskatoon. Processed assets would then be sold to Norwegian firm REEtec before being further processed and moved to other parts of Europe for various uses. However, in late September, after spending millions of dollars on the construction of the Saskatoon plant, the company made a stunning revelation.
SA国际影视传媒淚n summary weSA国际影视传媒檝e demonstrated that the Saskatoon facility doesnSA国际影视传媒檛 make economic sense for us to operate, so weSA国际影视传媒檝e decided to terminate that facility,SA国际影视传媒� Vital Metals chairman Richard Crookes said in a video statement. SA国际影视传媒淲eSA国际影视传媒檝e placed the holding company, Vital Metals Canada Ltd. into bankruptcy and weSA国际影视传媒檝e terminated our offtake agreement with REEtec.SA国际影视传媒�
Crookes, who was listed as the point of contact in Vital MetalsSA国际影视传媒� recent news releases, did not respond to three requests for an interview about the companySA国际影视传媒檚 current situation, or that of its subsidiary Cheetah Resources, which owns Nechalacho.
The GNWTSA国际影视传媒檚 department of Industry, Tourism and Investment would not comment on the status of either company, but noted that SA国际影视传媒淐heetah Resources has not attained commercial production as defined by section 68 of the NWT Mining Regulations,SA国际影视传媒� which means that the company is not currently required to file a royalty return.
Focus on Tardiff
Vital MetalsSA国际影视传媒� announcement about its Saskatoon plant coincided with its decision to focus on Tardiff, which Crookes called a SA国际影视传媒渧ery large, high-grade, shallowSA国际影视传媒� deposit and SA国际影视传媒渁 fantastic asset in a great jurisdiction.SA国际影视传媒�
Soon after the announcement was made, the company hired a new managing director in Geordie Mark, the former head of mining research at Haywood Securities, a Vancouver-based investment firm.
Weeks later, in late October, Vital Metals unveiled what it called a SA国际影视传媒渃ornerstone investmentSA国际影视传媒� from a Singaporean subsidiary of Chinese REE company Shenghe Resource Holdings. The investment SA国际影视传媒渨ill allow the company to establish a new leadership team, and to progress development of the large-scale Tardiff deposit,SA国际影视传媒� stated the news release announcing the deal.
The homepage of Vital MetalsSA国际影视传媒� website claims that the company aims to SA国际影视传媒渂ecome the lowest cost producer of mixed rare earth oxide outside of China,SA国际影视传媒� yet a Chinese firm will now share in any success the NWT project has.
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While Crookes did not respond to multiple requests for an interview, Hoefer noted that Shenghe likely doesnSA国际影视传媒檛 have enough ownership in the company to have controlling interest, but called Vital MetalsSA国际影视传媒� decision to get involved with a Chinese firm SA国际影视传媒渁 head-scratcher.SA国际影视传媒�
SA国际影视传媒淚f you research the critical mineral strategies of places like the United States and Canada, one of the reasons for having the strategy is also because China is dominating the scene with critical minerals,SA国际影视传媒� he said. SA国际影视传媒淭hereSA国际影视传媒檚 a concern because critical minerals are also used in defense and other strategic things. ThereSA国际影视传媒檚 concern over monopolization of critical minerals out of China.SA国际影视传媒�
No matter how Vital MetalsSA国际影视传媒� future unfolds, Hoefer believes prospects for the critical mineral industry in the territory are bright, and contends that the company has helped show the industrySA国际影视传媒檚 potential.
SA国际影视传媒淐ertainly the world has a strong demand for rare earths as with all of these critical minerals,SA国际影视传媒� he said. SA国际影视传媒淭hatSA国际影视传媒檚 why these minerals are called critical.
SA国际影视传媒淸Vital Metals] mined the smaller deposit [at Nechalacho] so that they could do proof of concept that they could establish a supply chain of rare earth elements from Canada all the way through to final product, and they did that,SA国际影视传媒� he added.
SA国际影视传媒淚 think itSA国际影视传媒檚 a tremendous stride that they proved that that could happen with stuff from the Northwest Territories.SA国际影视传媒�
The NWTSA国际影视传媒檚 critical minerals industry could become all the more critical in the coming years, with the territorySA国际影视传媒檚 three remaining diamond mines all nearing closure. The critical minerals industry wonSA国际影视传媒檛 replace the diamond mines, but it can help fill the void SA国际影视传媒� provided that the government can entice companies to start digging, Hoefer said.
SA国际影视传媒淭he Northwest Territories, and Nunavut for that matter, are hugely attractive from a geological potential,SA国际影视传媒� he said. SA国际影视传媒淲here they suffer is from things like lack of infrastructure, or overly complex regulatory systems, or their geography, which increases the costs. ThatSA国际影视传媒檚 where governments need to start realizing that, yes, weSA国际影视传媒檝e got great potential, but to unlock that potential, weSA国际影视传媒檙e going to have to roll up our sleeves and do something about it.
SA国际影视传媒淚 think sometimes people think that the reason we have mines is because the mines have come and decided to do what they want to do, but the reality is itSA国际影视传媒檚 governments that have a responsibility.SA国际影视传媒�
For more stories from NWT and Nunavut Mining 2023, click this link: /special-feature-publications/special-feature-pdfs/2023-mining-supplement/
