Avalon Advanced Materials announced last week it was reconsidering the viability of the Nechalacho rare earths project that it had shelved in 2014.

Nechalacho is located 100 kilometres southeast of Yellowknife, on Thor Lake.

Changes in the market for rare earths, as well as the GNWTSA国际影视传媒檚 recent 2030 Energy Strategy, are playing key roles in this projectSA国际影视传媒檚 fledgling revival.

SA国际影视传媒淲hat is changing now (is) the demand for certain rare earths and certain rare metals most closely associated with the green economy SA国际影视传媒� so electric vehicles, turbines SA国际影视传媒� is increasing significantly,SA国际影视传媒� says David Connelly, of Ile Royale Enterprises Ltd., a strategic adviser to Avalon Advanced Materials.

According to AvalonSA国际影视传媒檚 press release, SA国际影视传媒淭he world still largely relies on China for rare earth supply, yet China has reportedly become an importer of neodymium concentrates.SA国际影视传媒�

The other potential game-changer that might make Nechalacho viable is the GNWTSA国际影视传媒檚 aspiration to put in power infrastructure to connect the North Slave and South Slave grids and expand the Taltson hydro dam. One of the proposed routes in doing this would run power lines right by Thor Lake.

The report also stated a long-term goal of connecting the NWTSA国际影视传媒檚 grid to the rest of Canada, which would create economies of scale for producing power in the NWT, and also give the territory access to cheap southern power.

Connelly says this could bring costs per kiloWatt hour down significantly. Right now, he says, hydro power in Manitoba and Saskatchewan runs six to eight cents per kWh, compared to close to close to 34 cents per kWh for diesel power.

As well, the new iteration of the project is scaled down from before. The meat of the version of Nechalacho shelved in 2014 was an underground mining project, with a few surface metals as garnish.

The new Nechalacho is focused on those garnishes first and foremost, because they are whatSA国际影视传媒檚 in demand for electric vehicles, and then the project has the potential to scale back up to its original scope after that.

Right now, Nechalacho is still just an idea. The old project had a feasibility study and approved environmental assessment in place.

Connelly says Avalon is looking into whether, or to what degree, those still apply.

SA国际影视传媒淵ouSA国际影视传媒檝e caught us very early on this,SA国际影视传媒� says Connelly. SA国际影视传媒淭here's been no decision to go ahead and the engineering is just being done. Conceptually, this is a similar project (to the original), starting small and expanding to be the same or a very similar project.

SA国际影视传媒淗ow the permitting world will see that, we don't know yet. In other words, can it all be done within existing permits or will we need to take additional steps? We don't know.SA国际影视传媒�

The reaction to the projectSA国际影视传媒檚 revival is mixed in Lutsel KSA国际影视传媒檈, says Ray Griffith, manager of wildlife, lands and environment for the Lutsel KSA国际影视传媒檈 Dene First Nation.

SA国际影视传媒�(There are) those people in my community who are very afraid of the rare earth minerals that have potential of producing very serious pollution,SA国际影视传媒� says Griffith.

SA国际影视传媒淭here are also those in the community who are pleased with the announcement because there are community members who have been working there in the past and would like to be employed again,SA国际影视传媒� said Griffith, adding that when mines open up in the area, a community does tend to benefit economically.