Quebec-Labrador Heavy Rare Earth Development 

Project Overview 

Globally significant rare earth project featuring full suite of light and heavy rare earths, particularly dysprosium and terbium critical for permanent magnets, advancing towards 2028 production with comprehensive Indigenous engagement across Quebec and Labrador. 

Location & Jurisdiction Northeastern Quebec (Nunavik) extending into Labrador 

• Mine Site: Nunavik, northern Quebec 

• Separation Plant: Sept-Îles, Quebec 

• Infrastructure: Seasonal road connecting mine to Labrador coast 

• Port: New facilities on Labrador coast 

• Traditional Territories: Nunavik Inuit, Nunatsiavut Government (Labrador), Innu communities 

Indigenous Engagement Multi-Jurisdictional Indigenous Consultation: 

• Quebec: Nunavik regional government, local Inuit communities 

• Labrador: Nunatsiavut Government, Innu Nations 

• Sept-Îles Area: Innu communities and local stakeholders 

Engagement Status: 

• Environmental assessment registration with Nunatsiavut Government 

• Active involvement in all community consultations 

• Formal engagement since 2011 with various Indigenous governments 

• Information and consultation plan developed (end 2023) for Sept-Îles 

• IESG approach (Indigenous, Environment, Social, Governance) embedded 

Torngat Metals Commitment: "Robust partnerships with Indigenous peoples and local communities... leveraging... cutting-edge engineering, we look forward to playing a pivotal role in the global transition to clean energy." 

Key Statistics 

• Developer: Torngat Metals Ltd. (private company, Cerberus Capital-backed) 

• Total Capital: CAD $2 billion 

• Annual Production Target: ~15,000 tonnes rare earth oxides 

• Heavy REE Focus: Over 50% of output heavy rare earths (unique in North America) 

• Key Elements: Dysprosium, terbium (heavy); neodymium, praseodymium (light) 

• Mine Life: Multi-decade operation (specific duration not disclosed) 

• Employment: ~130 employees at mine site (priority to Indigenous communities Quebec/Labrador) 

Rare Earth Elements Significance: 

• Dysprosium & Terbium: Critical for high-performance permanent magnets (EV motors, wind turbines, defence) 

• Neodymium & Praseodymium: Essential for permanent magnets (robotics, drones, consumer electronics) 

• Applications: Electric vehicles, wind turbines, robotics, defence systems, consumer electronics 

Project Components 

• Open-pit mine 

• Concentration plant 

• On-site accommodation (remote location) 

• ~170 km seasonal access road (northern Quebec-Labrador) 

• New port facilities (Labrador coast) 

• Connects mine to separation plant and export markets 

• Produces high-purity rare earth oxides 

• Domestic processing (not exporting concentrates) 

• Strategic location for shipping 

Government & Regulatory Support December 2024 Federal Infrastructure Funding: 

• Amount: CAD $10 million (Critical Minerals Infrastructure Fund) 

• Use: Pre-development activities  

• Seasonal access road engineering 

• Port facilities planning 

• Indigenous community engagement 

• Environmental reviews 

• Planning and design work 

• Status: Pending final due diligence 

July 2025 Major Financing: 

• Export Development Canada (EDC): CAD $110 million bridge loan (first for EDC in rare earths) 

• Canada Infrastructure Bank (CIB): CAD $55 million infrastructure loan (first for CIB in rare earths) 

• Total: CAD $165 million for pre-construction 

• Purpose: Engineering, environmental studies, permitting, road/infrastructure upgrades, airstrip rehabilitation 

Federal Government Recognition (Minister Jonathan Wilkinson): "Essential for the rapid development of the Strange Lake Project, which will establish Canada and Quebec as global leaders in rare earths at time where there is a critical shortage of heavy rare earths outside China." 

Provincial Support: 

• Québec government grants and programmes 

• Ministère des Ressources naturelles et des Forêts support 

• Integration with Quebec critical minerals strategy 

Project Development Status Current Phase: Pre-feasibility and feasibility studies 

Timeline: 

• 2022: Cerberus Capital US $50 million investment 

• 2023: Environmental assessment registrations (federal, Quebec, Newfoundland & Labrador, Nunatsiavut) 

• 2024: Comprehensive environmental and biodiversity surveys 

• 2025: Pre-feasibility and feasibility studies completion (targeted) 

• Late 2026: Construction start (targeted) 

• 2028: Production commencement (targeted) 

Environmental Assessment: 

• Federal: Impact Assessment Agency of Canada (Initial Project Description September 2023) 

• Quebec: Provincial EA process 

• Newfoundland & Labrador: Provincial EA 

• Nunatsiavut Government: Indigenous government EA 

2024 Environmental Work: 

• Biodiversity surveys (birds, water quality, fish habitats) 

• Migratory birds and waterfowl assessments 

• Caribou population studies 

• Arctic char and trout inventories 

• Building on extensive baseline work (2011-2014) 

Sustainability & ESG Credentials Environmental Commitment: 

• Area rich in biodiversity and cultural significance recognised 

• Commitment to prevent or mitigate all operational impacts 

• New approaches to minimising environmental footprint 

• Comprehensive baseline studies and ongoing monitoring 

Indigenous Partnership Approach: 

• Meaningful Indigenous equity participation planned (core component) 

• Co-management of environmental monitoring 

• Community engagement since project inception 

• Transparent consultation processes 

Strategic Partnerships: 

• Vacuumschmelze: Strategic partnership to strengthen rare earth supply chain 

• Metso Corporation: Process engineering 

• AECOM, Anzaplan, Carester, DRA Global, Le Groupe DESFOR, SGS: World-class technical partnerships 

Investment Proposition for UK/European Investors Critical Supply Security: 

• China Dependence: Currently 90%+ of global heavy rare earth production 

• Strange Lake Position: Would be largest heavy rare earth producer outside China in North America 

• Supply Diversification: Reduces Western dependence on Chinese rare earth supply 

• Allied Nations Priority: Canada-UK-US-EU cooperation on critical minerals 

Strategic Advantages: 

• Full suite of light and heavy rare earths (unique in North America) 

• Heavy REE focus (dysprosium, terbium) addresses most critical supply gap 

• Domestic separation plant (finished oxides, not just concentrates) 

• Government backing (CAD $175 million committed) 

• Strong technical partnerships with global leaders 

• Established Quebec mining jurisdiction 

Market Drivers: 

• EV Adoption: Permanent magnets essential for electric motors 

• Wind Energy: Offshore wind turbines require significant rare earths 

• Defence Applications: High-performance magnets for weapons systems, guidance, sensors 

• Robotics & Automation: Industrial and consumer robotics expansion 

• Consumer Electronics: Smartphones, laptops, audio equipment 

Geopolitical Context: 

• China export restrictions on rare earths (2025 policy tightening) 

• Western supply chain resilience imperative 

• Canada-EU Strategic Partnership on Raw Materials 

• UK-Canada critical minerals cooperation 

• Defence supply security considerations 

ESG Differentiation: 

• Indigenous partnership model (not extraction-only approach) 

• Comprehensive environmental baseline and monitoring 

• Domestic processing eliminates overseas shipping of concentrates 

• Transparent community engagement 

• Lower carbon footprint than Chinese production (Canadian clean energy) 

Competitive Position North American Rare Earth Landscape: 

• Strange Lake: Largest heavy REE potential; full separation capability 

• Mountain Pass (California): Light REEs only; limited heavy REEs 

• Others: Mostly exploration stage or light REE focus 

Cost Competitiveness (Torngat Metals statement): 

• Production cost per kg competitive with global producers 

• Final figures dependent on engineering studies 

• Canadian clean energy advantage reduces operating costs 

• Proximity to North American markets reduces logistics costs 

Technology Leadership: 

• Low-impact, efficient production processes 

• Cutting-edge separation technology partnerships 

• Environmental innovation in rare earth processing 

• Quebec engineering expertise 

Recent Developments 

December 2024: CAD $10 Million CMIF Funding Announced 

• Federal infrastructure support approved 

• Pre-development activities advancing 

• Dr. Dirk Naumann (CEO): "Thrilled to receive this pivotal support from NRCan" 

July 2025: CAD $165 Million Government Financing Secured 

• EDC and CIB first rare earth project financing 

• Yves Leduc (CEO): "Pivotal moment for Canada's role in mineral supply chains" 

• Engineering and environmental studies accelerating 

• Construction timeline de-risked 

2024: Comprehensive Field Programmes 

• Environmental sampling completed 

• Biodiversity assessments expanded 

• Community consultation intensified 

• Infrastructure planning advanced 

February 2024: Pivotal Year Achievements Announced 

• Cerberus backing continuing 

• Global partnerships established (Metso, AECOM, others) 

• EA registrations completed across all jurisdictions 

• Tom Gilman (Chairman): "Urgent need for secure, sustainable rare earth sources outside China" 

Key Contacts 

• Developer: Torngat Metals Ltd. 

• CEO: Yves Leduc (appointed 2024) 

• COO: Olga Kovalik (appointed 2024) 

• Chairman: Tom Gilman (former US Assistant Secretary of Commerce, former Chrysler Financial CEO) 

• Website: www.torngatmetals.com 

• Email: information@torngatmetals.com 

Investment Considerations 

Opportunities: 

• Largest heavy rare earth potential in North America 

• Only North American project with full light and heavy REE suite 

• Domestic separation plant (finished products, not concentrates) 

• Government backing (CAD $175 million secured) 

• Strategic supply security premium for Western allies 

• China dependence reduction (90%+ market share currently) 

• Growing demand from EV, wind, defence sectors 

• Experienced management with government and industry expertise 

• Strong technical partnerships (Metso, AECOM, etc.) 

• Quebec established mining jurisdiction 

• 2028 production timeline (relatively near-term) 

Risk Factors: 

• Large capital requirement (CAD $2 billion) 

• Private company (limited public information, no exchange listing) 

• Remote location (northern Quebec/Labrador) 

• Multi-jurisdictional permitting (Quebec, Newfoundland & Labrador, Nunatsiavut, federal) 

• Indigenous consultation complexity across multiple territories 

• Rare earth price volatility 

• China market dominance and potential dumping 

• Technology adoption risk (separation process commercial scale) 

• Infrastructure construction challenges (seasonal road, port in remote area) 

• Environmental assessment outcomes uncertain 

• First production timeline dependent on permits and financing 

Technical Risks: 

• Rare earth separation complex metallurgy 

• Heavy REE processing more challenging than light REEs 

• Seasonal access road in subarctic climate 

• Port construction on Labrador coast (harsh environment) 

• Remote location labour and logistics costs 

Market Risks: 

• China could flood market to undercut Western projects 

• EV adoption rates affect demand 

• Alternative magnet technologies (ferrite, other formulations) 

• Recycling rare earths from end-of-life products (future competition) 

Investment Structure Options: As private company, access limited to: 

• Direct equity participation (institutional investors, strategic partners) 

• Offtake agreements with prepayment 

• Joint venture in specific project components 

• Debt financing participation 

• Strategic partnership (technology, processing, end-users) 

Strategic Investor Profiles: 

• Automakers: Securing magnet supply for EV motors 

• Wind Turbine Manufacturers: Heavy REE offtake for generators 

• Defence Contractors: Secure supply for weapons systems 

• Magnet Producers: Vertical integration opportunity 

• Government Investment Vehicles: Critical minerals security mandate 

• ESG Funds: Indigenous partnership model attractive 

Due Diligence Priorities: 

1. Metallurgy: Separation process validation at commercial scale 
2. Indigenous Relations: Consent status across all affected communities 
3. Permitting Path: Timeline and risk assessment for multi-jurisdictional approvals 
4. Infrastructure Costs: Seasonal road and port construction in remote location 
5. Market Analysis: Rare earth price assumptions, China response scenarios 
6. Capital Requirements: Full project funding plan and sources 
7. Management: Track record of Cerberus-backed team in mining 
8. Environmental Baseline: Adequacy of biodiversity and impact assessments 

Comparison to Global Rare Earth Projects: 

• Lynas (Australia): Operating; light REE focus; processes in Malaysia 

• MP Materials (USA): Operating; light REEs; exports to China for separation 

• Energy Fuels (USA): Developing; light REEs 

• Strange Lake: Development stage; unique heavy REE focus; domestic separation 

Investment Timeline: 

• 2025: Feasibility studies completion; permitting advancement 

• 2026: Final permits; construction financing close; construction start 

• 2027: Major construction phase 

• 2028: Commissioning and production ramp-up 

• 2029+: Commercial operations; offtake agreements commence 

Exit Strategies: 

• IPO potential post-production (TSX/NYSE listing) 

• Strategic acquisition by major mining company or end-user 

• Offtake agreement buyback provisions 

• Private equity secondary sale 

Investor Resources: 

• Torngat Metals website (www.torngatmetals.com) 

• Impact Assessment Agency of Canada project registry 

• Quebec Ministry of Natural Resources and Forestry 

• Nunatsiavut Government consultations 

• Canada Critical Minerals Strategy 

• International Energy Agency Critical Minerals reports 

Regional Context: Strange Lake part of broader Quebec-Labrador rare earth potential: 

• Quebec positioned as North American rare earth hub 

• Provincial support for sector development 

• Proximity to Sept-Îles port and infrastructure 

• Access to clean hydroelectricity 

• Established mining supply chain 

Strange Lake represents one of the most strategically significant rare earth projects in the Western world, uniquely positioned to supply critical heavy rare earths (dysprosium, terbium) where supply constraints are most acute. The project's advancement to feasibility stage with substantial government backing, comprehensive Indigenous engagement, and strong technical partnerships positions it as a leading investment opportunity for those seeking exposure to critical minerals supply chain resilience. The 2028 production timeline, if achieved, would establish Canada as a major supplier of rare earths outside Chinese control at a pivotal moment for Western supply security.