Canada Carbon appealing Quebec decision on Miller graphite project

Canada Carbon (TSXV: CCB) reported it has appealed the decision of the Commission de Protection du Territoire Agricole du Québec (CPTAQ) concerning its Miller graphite project, located in Grenville-sur-la-Rouge, Quebec. Canada Carbon is a mineral exploration company focused on the acquisition, exploration and development of graphite deposits. The company has acquired two historic graphite mines, the Miller and Asbury mines, located respectively in Grenville-sur-la-Rouge and Notre-Dame-du-Laus, Quebec.

In a statement, the company said: “This is an inexplicable and worrying decision that will have a significant negative impact on the development of projects related to critical and strategic minerals, and the precedent it sets for the Quebec mining industry.”

In a ruling handed down on March 18, 2025, the CPTAQ declined to authorize development of the Miller project, arguing that it would have a negative impact on the general interest of protecting the land and agricultural activities. The CPTAQ is also not convinced of the economic benefits associated with the Miller project. The company, however, believes, “This belief has no basis in empirical data.”

Ellerton J. Castor, CEO of Canada Carbon, commented: "I am deeply troubled by the CPTAQ's decision regarding the Miller graphite project. We feel that the CPTAQ erred on several points of law in its decision. We have therefore appealed this decision and are confident that it will be overturned by the Tribunal Administratif du Quebec,"

He added: "I'm also concerned about the signal this sends regarding the development of future mining projects in Quebec. This decision is completely at odds with the government's articulated objectives and Premier Legault's recent statements on the need to accelerate the development and exploitation of Quebec's critical and strategic minerals, of which graphite is one. Quebec has long been regarded as one of the most favorable business and mining jurisdictions in the world. This decision sends exactly the opposite message.  We would hope that the government acts to maintain this reputation, so that it can more easily achieve its objectives."

Canada Carbon also said this decision is “contrary to the results of the company's completed preliminary economic assessment.”

Canada Carbon stated that it believes that this ruling is a “deeply flawed decision” that contravenes certain principles that govern the CPTAQ's evaluation process.

The company has stated: “Additionally, the Commission should attempt to mitigate the impact of mining activities on agricultural activities, by imposing the necessary conditions as part of the authorizations issued.  It is clear that the CPTAQ has made no effort to reconcile and harmonize Canada Carbon's activities with surrounding activities.  As a result, The Commission has not exercised its jurisdiction in compliance with the Mining Act, or in compliance with other jurisprudential principles applicable in similar matters.”

Moreover, the company found that, “this decision is out of step with the conditional positive preliminary orientation for the miller project, published by the CPTAQ in 2020. At that time, the Commission highlighted several positive attributes of the Miller Project.

The statement concluded: “This unfavorable decision by the CPTAQ sets a precedent for the industry that runs completely counter to the federal and provincial government's desire and stated priority to accelerate the development of mining projects.  It also is contrary to the goal of nurturing the commercialization of highly sought-after critical and strategic minerals.  This is particularly true in the case of the Miller project which is one of only two known deposits of its type in the world. The metallurgical properties of this concentrate and its suitability for use in nuclear power generation could help secure this essential resource for accelerating Quebec's energy transition.”

More information is posted at www.CanadaCarbon.com.