Canada has approved the James Bay lithium mining project, in Quebec, as the government steps up its commitment to making the country a global supplier for critical minerals.

The James Bay project, located about 100 km east of James Bay and the Eastmain Cree Community, will produce an average of 321 000 t/y of spodumene concentrate with a 19-year mine life.

“This is an important decision for Canada,” said Natural Resources Minister Jonathan Wilkinson on Monday, announcing federal government approval for the mining project.

“The government is committed to making Canada the global supplier of choice for sustainably and responsibly sourced critical minerals, from exploration and extraction, to manufacturing and recycling, while also fostering mutually beneficial relationships between industry and Indigenous Peoples,” he said.

The government recently announced its Critical Minerals Strategy in which lithium is listed as one of six top critical minerals, owing to its importance in the clean technology sector, in particular the manufacturing of rechargeable batteries for hybrid and electric vehicles. 

In his decision, Environment and Climate Change Minister Steven Guilbeault sets out legally binding conditions that Galaxy Lithium Canada, a subsidiary of Allkem, must comply with throughout the life of the project.t These 271 conditions include measures to protect fish and fish habitat, migratory birds and birds at risk, wetlands, woodland caribou, bats at risk, Cree health and the current use of lands and resources for traditional purposes by the Crees.

For example, to protect the health of the Cree Nations, the proponent must develop a program to ensure the traditional food source of their communities remains safe for consumption. The proponent must monitor the quality of meat sourced from local game, including collecting samples and testing at least every five years. The program would be developed in collaboration with the Cree Nations, the Cree Nation Government, the local tallyman (trap line manager) and the Cree Board of Health and Social Services of James Bay.

“This is what a good project is all about. Critical minerals are one of the keys to building Canada’s low-carbon economy and ensuring economic prosperity for years to come. We can only develop those resources by designing from the outset with strong mitigation measures to protect the environment and working in true partnership with Indigenous Peoples. Our future depends on sustainable projects like this one,” said Guilbeault.

The proponent can now proceed with obtaining any other necessary permits and authorisations from federal departments, as well as from the government of Quebec.

According to a December 2021 feasibility study, James Bay will require a capital cost of $285.8-million. The project has an aftertax internal rate of return of 35.2% and a payback period of 2.9 years. The net present value is $823-million.