Ontario’s government announced an $11 million (US$7.86 million) investment Friday to support the construction of Generation Mining’s (TSE: GENM) new $410 million copper and palladium processing facility in Marathon, Ont.
With this funding, Generation becomes the first recipient of the government’s new Critical Minerals Processing Fund (CMPF), a $500 million reserve to back projects that advance the province’s processing capacity.
“Marathon is one of the most advanced undeveloped copper-palladium projects in North America,” said Jamie Levy, Generation’s president and CEO.
The government says Marathon will create 800 jobs during the construction phase and 450 new jobs once operational.
Located in northwestern Ontario, the marathon project is a fully-permitted, construction-ready open-pit mining and processing complex. A Nov. 2024 feasibility study estimated the project has a net present value (NPV) of $1.07 billion.
Trump’s trade-war
The announcement comes as the provincial government ramps-up domestic critical mineral production amid the Canada-US trade war.
“As President Trump attacks our economy, Ontario is fighting back by ending the ripping and shipping of our critical minerals and building the capacity to mine and process them right here at home,” said Stephen Lecce, province’s minister of energy and mines. Through investment in Ontario production and cutting red tape, Leece added, “No longer will it take 15 years to build a mine in Ontario — we are moving faster to build Ontario’s economy and protect our economic sovereignty.”
As the US continues efforts to reduce its reliance on China for critical minerals, losing access to Ontario resources, as Premier Doug Ford has threatened, would pose problems. Despite Ford’s threats to cut off critical minerals exports to the US, no official policy or ban has been enacted yet.
Vic Fedeli, Ontario’s minister of economic development, job creation and trade, said the investment is an example of the government “delivering on its commitment to keep minerals mined in Ontario processed and refined in Ontario, by our world-class workers.”
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