“We believe that our project can demonstrate the possibility of having a profitable rare earth operation with high ESG-I (Environmental Social Governance and Indigenous) standards.”

Can you introduce our readers to Torngat Metals and provide an overview of its operations in Québec?

CB: Torngat Metals is a privately owned company focused on rare earth elements (REEs), particularly those used in permanent magnets such as dysprosium (heavy REE), neodymium, and praseodymium. Our globally-recognized Strange Lake project is unique for its quantity of essential heavy rare earths.

The extraction and concentration of REE will take place at the mine site adjacent to Lac Brisson on the Québec-Labrador border, while the processing and refining of the concentrate will be done in Bécancour, Québec. We selected this attractive industrial park given its access to green electricity, as well as all needed resources. Our end product will be high purity separated rare earth oxides, with a focus on the rare earths required for the global permanent magnet supply chain.

Why is there a misconception that the mining of REEs has to be environmentally destructive?

CB: China is interested in exporting finished goods (cars, wind turbines, etc.), and has been clear in their policies to limit the exports of REEs and semi-finished products. Therefore, supply security is a big issue, as is sustainability of supply. China has not prioritized sustainability in its rare earth industry, and despite recent efforts to address sustainability, issues remain. Historically, they mined and refined REE without consideration for the health and safety for the environment, people, and communities affected. In addition, in recent years, China has come to rely on imports of heavy REEs from Myanmar, where the military executed a coup in 2021 with violent repression of its citizens. Do companies recognize that these REEs are in their supply chain? The way China has developed its REE industry has given the impression to many that REEs can only be produced in an environmentally destructive way. This is a myth. Like any other mining, mining for REEs can be done environmentally responsibly while maintaining profit margins. That is the context in which Québec is such an attractive location. We believe that our project can demonstrate the possibility of having a profitable rare earth operation with high ESG-I (Environmental Social Governance and Indigenous) standards in a geopolitically stable environment that is cost competitive with China. The permanent magnet value chain needs a long-term, sustainable, secure supply of REE. We want to position ourselves as one of these suppliers.

What makes Québec an attractive jurisdiction for the development of a rare earths supply chain?

CB:The Québec Government has a clear strategy for developing its REE industry, aligned with its electrification, circular economy and climate change strategies.

To produce permanent magnets, first the rare earth oxides must be turned into rare earth metals. There is currently not much capacity for this outside China, and we are strong supporters that Québec is an ideal location for the development of this and other steps in the value chain. Producing metal from oxide is energy-intensive, and globally Québec ranks as a top location for this given its low-cost, green electricity. Québec also has world-class environmental regulations and expertise, as the process is very analogous to aluminum smelting. Over time, the supply chain could be developed all the way to permanent magnet production. Québec is already making and designing drivetrain e-vehicle motors – companies like Dana TM4 with their permanent magnet electric motors, as well as Lion Electric, which are building vehicles with permanent magnet motors. With existing elements of the value chain already in Québec, and with secure, sustainable and traceable rare earth supply from Torngat and others, there is a strong business case for the development of a rare earth permanent magnet value chain here. Additionally, the Québec government's work to promote investment provides a solid base upon which we can succeed.

What does the future hold for Torngat?

DN: Torngat is currently working on developing its pre-feasibility study. There has been extensive drilling and geological work, as well as process development, therefore currently a key focus is piloting at larger scale, to allow us to do equipment sizing. We are working with a potential strategic investor, which would allow us to accelerate our PFS work and Bankable Feasibility Study.