Kivalliq critical minerals project could take centre stage amid U.S. tariff threat

Nunavut’s Kivalliq Region could be the sight of a game-changer for Canada as the country sharpens its focus on securing a domestic supply of critical minerals, says Canadian North Resources Inc.

The Mississauga-based mining company acquired the Ferguson Lake project in 2013 and has been exploring the region for various minerals since then. It’s located approximately 160 kilometres south of Baker Lake and spans nearly 257 square kilometres.

“What we are exploring for — and have already proven — on site at the Ferguson Lake Project is critical metals such as nickel, copper, cobalt, platinum and palladium,” said Sophy Cesar, head of corporate development at Canadian North Resources Inc.

Canada’s trade relationship with its closest trading partner, the U.S., has been thrown into flux since the election of U.S. President Donald Trump in November. Within weeks of his election, he began to threaten Canada with 25 per cent tariffs on all goods Canada imports into the U.S.

Trump’s rationale and plans for the tariffs have swung wildly since then.

He has pointed to a need for increased border security, complained of trade deficits, and suggested Canada become the 51st state.

Trump originally promised tariffs on all goods would be imposed on his first day in office, pushed the date back to Feb. 2, and then pushed the date back again to March 4.

Then on Feb. 9, Trump announced 25 per cent tariffs on all steel and aluminum imports from any country, including Canada, starting March 12.

Meanwhile, Canada’s premiers are in Washington, D.C., this week to meet with the Trump administration and talk trade. Canada’s federal and provincial leaders are also considering easing trade between provinces and territories, and focusing on domestic production, including of critical minerals.

This could potentially put Ferguson Lake in a unique position.

The site’s mineral potential is already highlighted in the federal government’s critical mineral strategy, which aims to increase domestic supply of the components needed to produce green energy.

“Those metals are all very much involved in clean energy, so electric vehicles, solar panels, the high-tech industry, and we’re sitting on a lot,” Cesar said.

Canadian North Resources procured a report this year that says 80 per cent of the indicated resources at the Ferguson Lake Project are near the surface and suitable for open-pit mining, making the site ideal for large-scale development.

Further exploration along the 15-kilometre mineralized belt suggests the deposit could be even larger, the report said.

Nearly 91 million tonnes of known resources have been discovered, with only a fraction of the site explored.

“There’s been over $190 million, probably over $200 million now, invested in the project, for drilling, as well as infrastructure and equipment that we have on site,” Cesar said.

“We really believe that we are sitting on probably one of the largest deposits of its type that is not in production in North America.”

Despite this potential, Nunavut’s long-awaited land-use plan remains a critical factor in determining the future of exploration projects within the territory.

A 2023 draft of the plan, which aims to balance economic growth with environmental protection, is still under consideration by the federal and Nunavut governments and Nunavut Tunngavik Inc.

If passed, the plan would designate Ferguson Lake as a limited-use area. This could restrict certain types of development, potentially impacting access to these resources.

“We believe for Ferugson Lake, we should be grandfathered in to the plan without issue,” Cesar said about any potential impacts on her company’s development plans.

“But for new claims/projects in the area that would be tougher.”

Meanwhile, the territorial government has poured thousands of dollars into Ferguson Lake, including $500,000 from the GN to support exploration and $98,875 for community engagement.

The funds support community site visits and focus groups at Ferguson Lake for people who live in the surrounding communities of Baker Lake and Arviat.

With the threat of U.S. tariffs increasing the demand for stable and reliable sources of critical minerals, Cesar said she believes the Ferguson Lake Project has the potential to bolster Canada’s position as a key player in the global supply chain.

“At this time, that’s very uncertain. It’s going to be interesting to see how quickly we move ahead on projects like this that are Canadian owned,” Cesar said.

“I think it’s a great time to be a Canadian company that could possibly supply these critical minerals for ourselves and worldwide.”