Manitoba backs First Nation‑owned critical minerals project with amended licence

CBC reports that a First Nation‑owned critical minerals project has moved closer to making Manitoba the “magnesium capital of Canada” after the province issued an amended environmental licence, Minago Development GP Inc. said in a Monday news release.

Kinosao Sipi (Norway House Cree Nation) acquired full ownership of the former Minago nickel project in the Thompson nickel belt in November 2024 and rebranded it after discovering magnesium and other platinum‑group metals. The province last week noted this marks Canada’s first critical‑minerals project fully owned by a First Nation.

Under the amended licence, the site may produce up to 10,000 tonnes of material per day, although Minago says the project still requires final planning and financing. Minago also noted the licence follows a long history of disputes and design changes: more than a decade ago the First Nation sued a previous owner over what it saw as inadequate protections for the Lake Winnipeg watershed, and subsequent proposals in 2014 and 2022 included relocating facilities outside the watershed and adding water‑treatment systems.

The province consulted Kinosao Sipi, neighbouring First Nations — Misipawistik Cree Nation, Mosakahiken Cree Nation and Pimicikamak Cree Nation — and the Manitoba Metis Federation before approving the revised plan, Minago said.

Minago says the project’s immediate focus is quarrying Minago dolomite for magnesium production. The company explained it will mine the surface dolomite, sandstone and granite ahead of accessing the nickel deposit to honour the community’s principle of fully using resources harvested from the land.

Kinosao Sipi plans to protect local environments while creating hundreds of jobs and reducing regional poverty, the release stated. Jim Rondeau, Kinosao Sipi’s major projects director and a former Manitoba cabinet minister, previously told CBC the facility could begin magnesium production by 2027 and that development costs might reach about $1.3 billion. He has also cited a past assessment estimating potential annual output value exceeding $20 billion, a figure Minago says could increase with the newly identified platinum‑group metals.

The province provided $2 million to support the project’s first phase, aimed at developing a low‑emission magnesium processing plant billed as Canada’s first. The initial stage is expected to create 20 permanent jobs and offer training to more than 50 First Nation participants, the government said.