Ottawa Approves Nickel Mining Project in Northern Ontario

An open cut mine is seen in an undated file photo. evgenii_v/Adobe Stock

The Canadian government has approved the Crawford Nickel Project in northern Ontario, saying the mine is expected to attract about $5 billion in investment.

The Impact Assessment Agency of Canada said in a July 31 statement that the open-pit nickel and cobalt mine will allow for 90 million tonnes of ore to be extracted per year. The agency estimates the project will contribute about $70 billion to Canada’s GDP over its 41-year lifespan.

Ottawa says the project will support about 5,000 jobs during construction and 1,300 permanent jobs once the mine is in operation.

The federal impact assessment found that the project, located 42 kilometres north of Timmins, Ont., would have adverse effects on fish and bird habitat, water quality, and indigenous peoples. However, the Impact Assessment Agency concluded those adverse effects were justified in light of the project’s expected benefits.

Environment Minister Julie Dabrusin said in the release that the country’s impact assessment process is “designed to support well-planned projects that benefit communities” and helps create the conditions for “job creation, economic opportunity, and responsible development.”

As a condition of approval, the company must implement measures to reduce adverse effects on indigenous communities, fish habitat, and birds.

“For example, working in consultation with Indigenous communities, the proponent will ensure the progressive rehabilitation of areas disturbed by the project, so that these areas return to their pre-project state or better as soon as possible,” the agency said.

In a statement, Canada Nickel CEO Mark Selby said the approval reflects collaboration with governments at all levels and indigenous communities, and the mine will maintain stringent environmental standards.

“We thank the minister and the federal government for their support of Crawford and appreciate the thorough work undertaken by the Impact Assessment Agency of Canada. We look forward to continuing to advance Crawford towards a construction decision in 2027,” Selby said.

After Ottawa’s approval of the mine, Canada Nickel will continue the process of advancing its engineering, project financing, and remaining permits necessary to construct the mine.

In May, Prime Minister Mark Carney announced the start of construction on Nouveau Monde Graphite’s Matawinie Mine in Quebec, which he said would become the largest graphite mine in the G7. He said the Nouveau Monde Graphite’s Matawinie Mine in Québec would supply up to 106,000 tonnes of graphite annually over 25 years, which would be “eight times Canada’s total graphite production right now.”

Carney estimated the mine would attract $2 billion of investment to Canada, with the graphite being used for advanced manufacturing, defence technologies, energy storage systems, and electric vehicle batteries.