Mining company plans lithium processing plant for Thunder Bay

A Toronto-based mining company plans to bring a lithium-hydroxide processing plant to Thunder Bay, Ont.

Avalon Advanced Materials has purchased an industrial property on Strathcona Avenue, the site of a former pulp and paper mill, to house the plant, which would process lithium for use in electric vehicle batteries.

"The critical mineral sector has been the focus for both the province of Ontario and the federal government," said Zeeshan Syed, president of Avalon. "It's part of the future economic development of the province, and this country, quite frankly."

"Our team really looks forward to deepening relations with the community, and helping build on a fantastic tradition of industry in the city."

Syed said the lithium will be mined outside of Kenora, Ont., and shipped to Thunder Bay for processing when the plant is complete; according to early estimates, about 550 jobs are expected to be created in total.

Avalon said the site was chosen as it has a deep-water port, and road, rail and utility access. The hope is to have the plant up and running by 2027 or 2028.

"There's a lot of work that has to happen," Syed said. "The company will have updates as we go along."

"But we don't want to presuppose anything until we work with the community, and make sure that everybody understands what we're doing," he said. "We'll come and brief the city and all the stakeholders there to make sure they not just know who we are and what the plan is, but they have every opportunity to to work with us."

Andrew Kane, natural resources business development manager with Thunder Bay's Community Economic Development Commission, said the plant may lead to other companies building similar operations in the city.

"You'll find in the lithium space that they often share facilities, or they're built in clusters," he said. "So there may be more than one lithium lithium facility in Thunder Bay, or Sudbury, or other areas that are heavily involved in mining."

In addition, there will be economic benefits for the city and region, Kane said.

"The infrastructure for a mine site is a couple hundred million, and the infrastructure for a lithium processing facility is in the hundreds of millions of dollars," he said. "These jobs are not only good for the local suppliers, but they create construction jobs, but also lasting jobs, good paying jobs."

"For every job in a mine site, it's gotta be at least three to four ... jobs in support companies as well," Kane said. "It's really good news."

Thunder Bay Mayor Ken Boshcoff said the purchase is a "significant move" for Avalon.

"The explorations have been going on for a while," he said. "The companies have been setting up their offices in Thunder Bay for quite a while, and they're all impressive."

"Now we're getting really down to what you might call the brass tacks of 'here it comes,'" Boshcoff said. "This is no longer any kind of a pipe dream, this is the real stuff."