$15.8 million in funds for further development on the Mactung tungsten mine in Yukon, Canada; the objective here is to find a domestic source and enhance national security at the same time by increasing dependency on locals rather than imports.
In a strategic effort to boost national security and reduce dependence on foreign critical minerals, the U.S. Department of Defense has made an investment of $15.8 million in Fireweed Metals Corp., a Canadian company. The investment will focus on speeding up the development of the Mactung tungsten mine located in Yukon Territory, which is known as one of the world’s largest undeveloped high-grade tungsten deposits. citeturn0search3
For example, tungsten is irreplaceable in many applications in the military because of its extreme hardness and melting point, hence ideal for armor-piercing ammunition, missile parts, and other defense machinery. The United States currently depends heavily on imports for this critical mineral, with much of that coming from China. As such, the defense supply chain remains vulnerable to geopolitical tensions and risks.
Assistant Secretary of Defense for Industrial Base Policy, Dr. Laura Taylor-Kale said that the investment is significant as, “Tungsten is used in a diverse set of DoD systems and is critical to national security. The United States is too dependent on overseas sources of tungsten, and a secure North American supply for this commodity will mitigate one of our most critical material risks.”
This is a mutual interest shown by the U.S. and Canadian governments toward developing the critical mineral supply chains. Over and above the DoD funding, the Department of Natural Resources has accepted up to CAD $12.9 million, that amounts to approximately USD $9.2 million, conditional on funding the Mactung project. This is bilaterally in line with the U.S.-Canadian Joint Action Plan on Critical Minerals initiated in January 2020. This will enhance the production of critical minerals within North America, crucial for defense, aerospace, clean energy, and other important sectors.
The Mactung project would be the one pivotal element in setting up a constant and reliable source of tungsten for North America. Funding would mean a resource definition, metallurgical testing of the resource, feasibility studies on the mine, as well as other work needed to continue towards construction. This then means that when completed and built, the mine would support the defense sector by availing tungsten and making way for the supply chain towards resilience.
This is one facet of a broader DoD effort toward securing critical mineral supply chains while diminishing vulnerabilities created through reliance on foreign sources. The DoD invests in domestic and allied sources of essential materials, guaranteeing that the US military will have continued access to the resources necessary to continue providing for national security and maintaining technological superiority.
The development of the Mactung mine is a landmark in supply chain security and, most importantly, international cooperation in common challenges. As demand for critical minerals continues to grow across the globe, such cooperation will be crucial in establishing secure and resilient supply chains in the future.
