Some junior mining companies say they are left out from Ontario's critical minerals strategy

Some junior mining companies say they haven't benefited from Ontario's critical minerals strategy, which aims to build a homegrown supply chain for electric vehicles and their batteries.

The strategy would connect northern Ontario's mineral resources which include important metals like nickel, cobalt and lithium to battery and vehicle manufacturing in the south.

Johnathan More, the chairman and CEO of junior miner Power Metals Corp, said companies like his don't get any support from the province to explore mineral deposits that could become productive mines.

Power Metals Corp is exploring lithium, cesium and tantalum deposits near Cochrane, in northeastern Ontario.

"There's no assistance from the government at all doing what we do," More said.

"They may play the card that they're trying to assist exploration companies to get to the finish line and make discoveries and bring these to production, but that is a false statement. There is no help from the government whatsoever in the province of Ontario."

More said if there was more government support he wouldn't have to look for investments from other regions, including Europe and China.

The Chinese company Sinomine Resource Group had a five per cent stake in Power Metals Corp. But in early November the federal government ordered the Sinomine to sell those holdings over growing national security concerns.

More said his company will be able to move ahead, even after losing that $1.5 million investment from the Chinese company.

Junior exploration program

As for support from the province, there is the Ontario Junior Exploration Program, which helps finance early exploration projects with up to $200,000 to cover half of the eligible costs, and up to $10,000 to support Indigenous employment and business opportunities.

So far, 29 junior mining companies have received funding through the program.

In a statement, Ontario Minister of Mines George Pirie said the province has invested $24 million in the Ontario Junior Exploration Program, which includes $12 million for a new critical minerals funding stream.

Vance White, the president and CEO of Noble Mineral Exploration, said his company did receive $200,000 from the program, which helped pay for some exploratory drilling which had "mixed" results.

Noble Mineral Exploration owns a number of properties in northeastern Ontario with nickel, gold and cobalt deposits.

But despite some funding from the Ontario Junior Exploration Program, White said the federal and provincial governments could do more to help junior miners.

"We've yet to see the federal government or the provincial government for that matter step into the mineral exploration, development or production phase," he said.

White said he welcomed news the United States military could fund mining projects in Canada, to reduce its dependence on countries like China.

"The U.S. is stepping up to where the defence department is likely going to be financing mineral opportunities, whether they be in the States or with one of their favoured nation trading partners, including Canada," he said.

I believe that Ontario is prioritizing key deposits and key assets.- Trevor Walker, president and CEO, Frontier Lithium

Despite what he said is a lack of support, White said his company should be in a position to develop its resources with private investment.

"We have a very solid working capital position and we have large investment holdings in Canada Nickel and Spruce Ridge Resources, which is carrying out an exploration program in Quebec," White said.

Other junior mining companies say they are pleased with support they have received from the province.

"I believe that Ontario is prioritizing key deposits and key assets," said Trevor Walker, the president and CEO of Sudbury-based Frontier Lithium, which is exploring two lithium deposits in northwestern Ontario.

Walker said he is in regular contact with representatives from the province's Ministry of Mines, which has helped his company with permitting and geological information, in addition to some financial support.

In 2021 the company received $360,000 from the provincial government to develop an extraction process for lithium.

Garry Clark, the president of the Ontario Prospectors Association, said the province is "putting their money where their mouth is."

Clark said his association expects funding announcements in the new year, which could lead to between $10 million and $15 million in new money for junior mining companies.

But Clark said there is room for improvement. For years his organization has lobbied for more generous tax credits for companies involved in mineral exploration.