Torngat Metals receives capital investment to advance its Strange Lake project

Torngat Metals receives capital investment to advance its Strange Lake project

Canadian-based Torngat Metals announced a US$50M phased investment by Cerberus Capital Management to help advance its Strange Lake rare earth element (REE) project, in the Nunavik region of Québec.

Blue View

The investment from Cerberus will allow Torngat to complete a pre-feasibility study (PFS) and a bankable feasibility study (BFS) that will ultimately pave the way for the construction of a mine and an offsite separation facility in southern Québec. The company is currently progressing with piloting and engineering studies, with a tentative mid-decade goal to supply separated high-purity REE oxides. While Strange Lake joins the new project marketing trend to supply the ever-increasing NdFeB magnet demand in new-energy applications – such as EVs and wind turbines – the project serves as an opportunity to further strengthen US-Canada relations, as well as with the other signatories of Minerals Security Partnership (MSP), announced in June this year.

Currently, China dominates the global REE supply chain, with only a handful of key mine-to-refine supply chains existing outside of the country. Looming concerns over export restrictions as China’s downstream market moves to capture more value have driven many western countries to form strategic alliances aimed at reducing dependence on Chinese critical mineral supply. In fact, Canada has already begun to up the ante in the race to secure critical minerals by further hardening geopolitical battle lines. Last week saw the Canadian government ordering three Chinese companies to divest their holdings in lithium mining assets in Canada. The move followed only days after the Canadian government released a new protectionist restriction on foreign direct investment (FDI) and foreign ownership in the critical minerals sector. China, in the past, has used its supply chain dominance position to inflict economic pain on trade partners. With geopolitical risks on the rise, ex-China partnerships are popping up, begging the question of how China will respond.

In the meantime, China’s downstream investments have made the country become a net importer of many critical materials. And while ex-China supply chains look to ramp up, a new hurdle will be competing for third-party international feed against higher and established demand in China. This places projects at a crossroads, either hoping to gain premiums for supporting ex-China supply chains or looking to step into security from established downstream markets in China.

  • 11 Nov 2022
  • Canada
  • Toyota Tsusho
  • Light rare earths
  • Magnets & Motors

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