Norway House rebrands mining operation

Norway House Cree Nation aims to become Canada’s magnesium supplier — and it’s signalling so through a name change of a long-time mining project.

The First Nation fully owns mining rights to a large swath of land south of Ponton and north of Grand Rapids, along Highway 6. Nickel has been the project’s main focus over two decades of exploration.

Since Norway House bought the rights from Flying Nickel Mining Corp. last year, it’s investigated “the entire animal,” said Jim Rondeau, a former MLA and current director of Norway House’s major projects office.

Tests have found the presence of five platinum group metals — magnesium, rhodium, platinum, palladium and ruthenium — in addition to nickel, Norway House recently announced.

It has since rebranded its operation from the Minago Nickel Project to the Minago Critical Minerals Project.

“We found a whole treasure chest of things that are unbelievably valuable,” Rondeau said.

Platinum cost US$1,559 per ounce late Sunday afternoon.

The First Nation hopes to start a magnesium production facility. Some 111 million tonnes of overlying dolomite waste rock will be generated by mining nickel and other minerals on site, Norway House says.

Dolomite is a source of magnesium. Magnesium is used in aerospace and auto sectors, among others; it’s on Canada’s critical minerals list. Canada largely ships magnesium from other countries, including China.

Last year, Norway House estimated its project could elicit more than $20 billion in mined goods. The number could balloon by adding platinum group metals, Rondeau said. Norway House estimates magnesium will represent 11 to 12 per cent of its dolomite rock.

Funding, energy hook-ups and staffing remain challenges, Rondeau said.

Norway House bought the project for $10 million. Setting up a production facility could cost, over time, $1.3 billion, Rondeau said.

The First Nation has asked Ottawa for $110 million — $30 million for electrification, the rest for development — and Manitoba for $60 million, largely for training. It’s submitted multiple funding requests over the past two years, Rondeau said.

“I don’t look at this as, ‘Oh please, give me free money,’” he said. “This is, ‘We would like your money, and then we would give it back.’”

He doesn’t believe the project will need further government funding. It’ll pay for itself, he said, adding that he doesn’t know if the requested government dollars will come.

The project could produce 6,000 to 7,000 railcars of material per year “for generations,” Rondeau said.

Norway House has trained around 50 locals — on everything from drilling to vehicle operation — using money from Indigenous Services Canada, Prairies Economic Development Canada and the Manitoba Mineral Development Fund.

“We want to see the benefits to the region…. other First Nations, other communities,” Rondeau said. “We need training.”

Five hundred workers have been projected as needed for the proposed open pit operation.

A final business case and Manitoba Hydro study haven’t been completed. Norway House has signed a memorandum of understanding with a company to produce magnesium without waste, Rondeau said, declining to share the firm’s name.

A three-year exploration plan is awaiting approval from the Manitoba government, Norway House Chief Larson Anderson said in a news release.

Norway House owns Playgreen Development Corporation, a heavy construction firm. Last November, the First Nation said it had a joint venture with Sigfusson Northern, another construction firm, and an agreement with Dumas Contracting, which operates mines.

Chief Anderson has previously said Norway House took on the Minago project to address social challenges its 8,000-plus members face, such as unemployment.

Environmental permitting is nearly complete, a project webpage states. The Minago project encompasses 94 mineral claims and two mining leases.

gabrielle.piche@winnipegfreepress.com