Welcome back to your weekly mining news recap, where we catch you up on some of the news you may have missed. This week’s headlines include uncertainty for the future of Northvolt’s battery manufacturing plans in Quebec, Hudbay settling years-old human rights lawsuits and Rio Tinto beginning production at its A21 underground mine at Diavik. 

The Canadian government announced almost $25 million in conditionally approved funding for 10 infrastructure projects in Ontario aimed at advancing critical minerals development. Out of these projects, Canada Nickel’s Crawford nickel project, located near Timmins, will receive $6.8 million to progress a power transmission line and advance electrification studies, while Frontier Lithium will receive up to $6.1 million for infrastructure related to its high-grade Pakeagama (PAK) lithium project, north of Red Lake. 

Senior U.S. official Jose Fernandez has claimed that Chinese lithium producers are driving global lithium prices down through oversupply to eliminate their competition, as reported by Reuters. He noted that China produces more lithium than required globally, which has contributed to a “predatory” 80 per cent price drop over the last year, impacting producers worldwide. These plummeting prices have led many global lithium producers to cut back on production and reduce their workforces. 

Nevertheless, Rio Tinto is expanding its lithium portfolio by acquiring Arcadium Lithium for US$6.7 billion in an all-cash deal, as reported by The Globe and Mail. The deal has been approved by both companies’ boards but must still be approved by Arcadium’s shareholders and regulatory authorities. The acquisition, which is expected to close by mid-2025, signifies a strategic shift for Rio Tinto, which has not been a big player in the lithium space. In Canada, Arcadium owns the Galaxy lithium project, and also holds a 50 per cent stake in the Nemaska Lithium project, both situated in northern Quebec.  

Coeur Mining has made an offer to acquire SilverCrest in an all-share deal for US$1.7 billion, which would add SilverCrest’s Las Chispas silver mine in Mexico to its portfolio and make it a top global silver producer, as reported by Mining.com. The deal is expected to close in the first quarter of 2025, pending approval from shareholders and regulatory authorities. Coeur Mining shareholders would own 63 per cent of the merged company and SilverCrest shareholders would own 37 per cent. 

The future of a major battery plant under development in Quebec is uncertain following Swedish battery manufacturer Northvolt’s bankruptcy filing for one of its subsidiaries, as reported by BNN Bloomberg. The company is grappling with considerable challenges, with cell production at Northvolt’s Canadian site near Montreal, which was originally scheduled to begin in the third quarter of 2026, now delayed by over a year, according to sources familiar with the matter. Additionally, cathode-making and recycling initiatives that were to be part of the first phase of its Quebec facility are being postponed as the company reassesses its plans.  

Hudbay Minerals Inc. has settled a series of long-standing lawsuits this week related to alleged human rights violations at the Fenix project it once owned in Guatemala, as reported by The Globe and Mail. The settlements are with 13 Guatemalans for an undisclosed amount and do not require that Hudbay admit liability or accept the facts as detailed by the plaintiffs, which included allegations of violent offences both before and after the mining company acquired the Fenix operation in 2008. An Ontario Superior Court judge set a precedent in 2013 when she ruled that the plaintiffs could bring their claims to a Canadian court.  

Rio Tinto has completed the first phase of the A21 underground mine at its Diavik diamond mine in the Northwest Territories and is moving it into commercial production, as reported by The Northern Miner. The company spent US$40 million to expand production underground below the previously mined A21 open pit, extending operations to early 2026. This first phase is expected to yield an additional 1.4 million carats, and an additional US$17 million investment has been approved for the second phase, which is anticipated to produce another 800,000 carats.  

The Mongolian National Mining Association (MNMA) has adopted the Towards Sustainable Mining (TSM) program, developed by the Mining Association of Canada, as reported by Engineering News. The program provides a way for mining companies to measure and publicly report on their environmental and social practices. MNMA is the twelfth mining association outside of Canada that has implemented the TSM program. 

Burkina Faso junta leader Ibrahim Traoré said that he intends to revoke mining permits from some foreign mining companies in a bid to increase the country’s domestic gold production, as reported by Reuters. Traoré did not specify which permits would be impacted.  Shortly after, Fortuna Mining stated that the country’s Ministry of Mines confirmed that it has no plans to revoke permits for its Yaramoko mine. Iamgold also stated that it is not aware of any possibility of having permits withdrawn for its Essakane mine. 

ICMM has launched a new resource to help advance the implementation of circularity in the mining and metals sector. The 64-page document titled “Tools for Circularity” offers business cases and case studies to assist companies in enhancing their material efficiency, lowering emissions and recovering waste, to help support sustainable practices and encourage collaboration for responsible resource use. 

The introduction of Bill C-59, which will take effect in June 2025, shifts the responsibility to businesses to demonstrate that their environmental claims are not misleading, which will significantly impact how mining companies convey their sustainability efforts, argued Robert Simpson in the September/October issue of CIM Magazine. With non-governmental organizations now empowered to challenge these claims, transparency and validity are key to avoid greenwashing accusations. Companies must support their claims with credible evidence and frequently update their communications to build trust and comply with the new regulations.  

That’s all for this week. If you’ve got feedback, you can always reach us at editor@cim.org. If you’ve got something to add, why not join the conversation on our Facebook, Twitter, LinkedIn or Instagram pages?