Yukon-based mining company Fireweed Metals has signed a binding letter of intent to buy the Mactung tungsten mine project for US$15M from the Northwest Territory government in Canada. 

The Mactung mine project is located on the border between the Yukon and Northwest Territories and hosts a high-grade tungsten deposit. According to a 2009 feasibility study, the advanced stage project has indicated resources of 33Mt grading 0.88% tungsten trioxide (WO3) in addition to historic inferred resources of 11.8Mt grading 0.78% WO3. By comparison, the Nui Phao tungsten mine in northern Vietnam, which currently accounts for approximately 30% of the world’s total supply of tungsten, has a grade of 0.21% WO3.

Tungsten’s key applications are in wear-resistant, structural, and cutting parts and tools, which are experiencing weaker demand in line with the global economic slowdown. Nevertheless, a tight spot market has evolved and tungsten remains high on the list of identified critical raw materials. Research from H.C. Starck Tungsten Powders has shown that tungsten-based cathode coatings in lithium-ion batteries can potentially increase a battery’s life cycle by 5-10 times, a development that could see tungsten become an even bigger player within the energy transition space.

Canada’s government is looking to address critical materials from a strategic supply side approach. This recent acquisition by Fireweed is yet another indicator of mineral developments in Canada targeting diversification of critical material supply chains away from China dominant markets.