Canada and U.S. Department of Defence invest $35M in the Yukon's Mactung mine

Editor's note: This article has been rewritten since its original publication to more accurately report the perspective of Fireweed Metals and its CEO, Peter Hemstead. The article more precisely describes the contents of news releases issued by the Canadian and American governments and clarifies that comments from the First Nation of Na-Cho Nyäk Dun came in a statement to CBC News rather than an interview. An image of a rocket launch unrelated to the story has been removed.

Canada and the U.S. have announced joint funding for a mine that contains one of the largest tungsten deposits on Earth.

Last week, Canada and the U.S. announced they are investing in pre-development activities at Mactung mine. The project straddles the border between the Yukon and the Northwest Territories, and on the traditional territories of the Kaska and the First Nation of Na-Cho Nyäk Dun. 

In separate news releases on Dec. 13, the Canadian government and the U.S. Department of Defence each announced funding for the mining company. Canada's contribution of up to $12.9 million is set to go toward "pre-development" activities — design, studies and data collection — for improvements to both the North Canol road and transmission lines between Faro and the Macmillan Pass site, according to the release. Some of the money will also go toward consultation with First Nations.

In its own news release, the U.S. Department of Defence said it would provide $15.8 million US (approximately $22.1 million Cdn).

The Canadian portion of funding will come out of Canada's critical minerals infrastructure fund and will go entirely to Fireweed Metals. The company purchased the mine from the Northwest Territories government in 2023. The Northwest Territories bought the project in 2015 as part of a bankruptcy sale involving the defunct Cantung mine.

Fireweed now owns both the Mactung and the adjacent Macpass project, which it began exploring back in 2017. 

"It borders our Macpass asset, and that was predominantly what attracted us to it," said CEO Peter Hemstead in an interview with CBC News. "But also you know, the more we looked into it and understood the world dynamics on tungsten, [the more] we were attracted to acquiring it." 

Hemstead also said his company has been meeting with First Nations to discuss the project with them.

"We had meetings with Chief Hope [in November]. And you know, the Yukon regulatory body requires us to continue to keep our rights holders well-informed of our operations and activities in that area," he said.

He said studies for the North Canol road would be done over three to four years.

"With that, there's funding that will go toward consultation [with] the rights-holders in the area and ensuring they're comfortable with what's being designed and making sure they consent to this potential investment in upgrading that road," he said.

Tungsten, which is considered a critical mineral, has a variety of uses. In its news release Friday, the U.S. Department of Defense said its most common use is for industrial products like drill bits and machine parts. It's also used in the production of military-grade steel, aerospace components and vehicle armour, said the release.

Tungsten's exceptional heaviness, hardness and heat-resistance also make it important for the production of munitions. The Defence Department release called it "a critical input."

The country has a strained diplomatic relationship with China, the world's largest producer of tungsten. 

Laura Taylor-Kale is assistant secretary of defence for industrial base policy with the United States Department of Defence.

"Tungsten is used in a diverse set of DoD systems and is essential to national security," she said in the department's Dec. 13 news release. "The United States is overly reliant on overseas sources of tungsten and a secure North American supply for this commodity will mitigate one of our most critical material risks."

Na-Cho Nyäk Dun has 'moral opposition' to arms manufacturing

CBC reached out to the First Nation of Na-Cho Nyäk Dun for their response about the funding announcement.

In an emailed statement attributed to Adrienne Hill, the manager of implementation and governance, the First Nation said all it knows about the project so far is what is in the news releases from the Canadian government and the U.S. Department of Defence.

The statement said Na-Cho Nyäk Dun has both environmental and moral concerns about tungsten mining. It noted tungsten mining often uses large amounts of water and it is concerned about the effects mining activities could have on the flora, fauna and landscape of the area.

It also pointed to the use of tungsten in weapons manufacturing.

"NND has moral opposition to weapons production," Hill said in the statement. "The link between this mine and missile production raises ethical questions about supporting industries tied to conflict and violence."

Hill stated Canada and the U.S. are bound to operate according to disarmament objectives outlined by the UN Disarmament Commission. 

"When the consultation process begins … Na-Cho Nyäk Dun will seek to partner with Canada and the U.S. to collaborate and advocate actively with disarmament objectives."

Premier calls Mactung project 'incredibly important'

"It's not just important for the Yukon," said Yukon Premier Ranj Pillai. "It straddles the border between the Yukon and the Northwest Territories. It's incredibly important for First Nations communities that have an opportunity to partner with the company that is moving that project forward.

"I think it's incredibly important for North America … from a security and defence perspective." 

Caitlin Cleveland, the N.W.T.'s minister of education, culture and employment, shared Pillai's enthusiasm in a statement. 

"During a recent meeting with Fireweed Metals ... I reaffirmed our government's commitment to economic development and to working together to advance Mactung," she wrote.

"By advancing resource development projects in the North, we can support economic growth, job creation and climate action while strengthening partnerships with Indigenous groups and international allies."

Kaska Dena leadership and the federal government did not respond to requests for comment by deadline.