CIB’s $55 million loan to Torngat Metals strengthens Canada’s critical minerals sector
- The CIB’s first investment in the critical minerals sector
- Advances early construction work and improvements to existing infrastructure
- Deposit includes heavy and light and rare earths
TORONTO – The Canada Infrastructure Bank (CIB) has reached financial close on its first critical minerals investment – Strange Lake – a project which will help strengthen Canada’s supply chain and enhance global economic competitiveness.
A $55 million enabling infrastructure loan to Torngat Metals Ltd. supports the next phase of its Strange Lake rare earth minerals project. Enabling work includes utility connections, rehabilitation of an airstrip and improvements to existing infrastructure to prepare for future the development of an open-pit mine and concentration plant in Nunavik and a separation plant in Sept-Îles.
The Strange Lake mine is expected to have a significant quantity of light and heavy rare earths, particularly dysprosium and terbium, which are essential components to high-performance permanent magnets and low-carbon solutions that play a key role in the energy transition.
The CIB’s low-cost financing can help develop Canada’s critical minerals supply chain by bridging project financing gaps and reducing risks associated with an early-stage mining.
Critical minerals are the building blocks for the green economy and present an opportunity for Canada’s mining industry in many areas: exploration, extraction, processing, downstream product manufacturing and recycling. The Strange Lake project is expected to create approximately 450 jobs once in operation.
Export Development Canada (EDC) is providing $110 million bridge financing to Torngat Metals to support essential pre-construction activities. The CIB and EDC are well-positioned to unlock opportunities for private sector investment in Canada’s critical minerals infrastructure with complementary financing capabilities.
The CIB’s critical minerals initiative aligns with the Canadian Critical Minerals Strategy as a financing source to accelerate the development of Canada’s critical mineral resources and supply chains.
The CIB is pleased to provide a project finance loan to Torngat Metals to advance the next phase of the Strange Lake mining project - our first in the critical minerals sector. We are proud to partner with the private sector to catalyze investment in rare earths and advance nationally significant projects that strengthen Canada’s position in global exports markets.
Critical minerals are the building blocks for advancing digital technology and energy and play a significant role in growing Canada’s economy. This investment in the Strange Lake project aligns with our commitment to increasing innovation, building economic prosperity, and strengthening our relationships with international trading partners, while we build the strongest economy in the G7.
We’re honoured to be Canada Infrastructure Bank’s first investment in critical minerals and grateful for their confidence in our vision. The CIB’s financing will enable us to continue advancing key components of our Strange Lake project and bring us closer to delivering a unique solution to the heavy rare earth supply challenge, while laying the foundation for a strategic and responsible rare earth industry in Canada.
