Canada and the United States have announced a landmark joint investment aimed at unlocking critical mineral resources in the Yukon Territory, marking a pivotal moment in their ongoing commitment to bolstering North American critical mineral supply chains. Fireweed Metals Corp., a Vancouver-based exploration company, will receive significant funding to further its critical mineral projects in the Macmillan Pass area, an emerging district of strategic importance.
The U.S. Department of Defense has allocated US$15.8 million (approximately C$22.5 million) under Title III of the Defense Production Act of 1950 to support Fireweed’s Mactung tungsten project. In parallel, the Government of Canada has pledged up to C$12.9 million through the Critical Minerals Infrastructure Fund, contingent on final due diligence. This Canadian funding will be directed toward regional infrastructure improvements, including roads and power transmission lines. Together, this coordinated effort highlights the critical significance of the Macmillan Pass district, which is home to some of the world’s largest critical mineral deposits.
Fireweed’s Mactung tungsten project, one of its flagship initiatives, holds the world’s largest known high-grade tungsten deposit. Tungsten is crucial for both defense and clean energy applications, making it a strategic material for national security and technological advancement. The U.S. Department of Defense’s investment will enable Fireweed to move the project toward a final investment decision. Key areas of focus include mine design optimization, geotechnical investigations, and metallurgical testing, which will culminate in a new feasibility study. Environmental studies and necessary permitting processes will also be pursued to facilitate the project's development.
The Canadian government’s investment will support the first phase of the North Canol Infrastructure Improvement Project. This includes preliminary designs for road upgrades spanning approximately 250 kilometers, as well as enhancements to the existing transmission line between Faro and Ross River and the construction of a new line to Macmillan Pass. These infrastructure improvements will be essential not only for Fireweed’s projects but also for the broader economic and social development of the region, including the well-being of local communities and Indigenous groups.
The Macmillan Pass district is home to two major projects being developed by Fireweed: the Macpass zinc-lead-silver project and the Mactung tungsten project. The Macpass project hosts one of the world’s largest undeveloped zinc resources, along with significant concentrations of germanium and gallium elements that are essential for advanced technologies. Together, these projects provide a unique opportunity to secure a stable supply of critical minerals for North America, enhancing industrial supply chain resilience and supporting the transition to a low-carbon economy.
Peter Hemstead, Interim President and CEO of Fireweed Metals, emphasized the transformative impact of the investment, stressing the company's dedication to respecting the rights of local Indigenous communities and ensuring responsible development. Fireweed’s Strategic Advisor, Adam Lundin, echoed this sentiment, underscoring the strategic importance of the Macmillan Pass district in strengthening North America’s industrial base.
Canadian Energy and Natural Resources Minister Jonathan Wilkinson hailed the partnership as a reflection of the longstanding collaboration between Canada and the United States. He highlighted the vital role that responsibly sourced critical minerals will play in driving the clean and digital economy, while simultaneously fostering job creation and economic growth in the Yukon. U.S. Assistant Secretary of Defense for Industrial Base Policy, Dr. Laura Taylor-Kale, also underscored the significance of tungsten in national security and the importance of this joint investment in enhancing North American supply chains.
The funding aligns with the broader goals of the Canada-U.S. Joint Action Plan on Critical Minerals Collaboration, which seeks to boost the production of minerals vital for industries such as defense, aerospace, clean energy, and communications. Canada’s Critical Minerals Strategy, supported by a $3.8 billion investment, further reaffirms the nation’s commitment to advancing critical mineral resource development. The strategy prioritizes economic growth, climate action, reconciliation with Indigenous peoples, and fostering diverse and inclusive communities.
Fireweed Metals Corp., a member of the Lundin Group, holds a 977-square-kilometer land package in the Yukon, encompassing both the Macpass and Mactung projects. With its vast mineral resources and strong commitment to responsible development, Fireweed is poised to play a pivotal role in meeting North America’s critical mineral needs while contributing to regional economic and social development.
This collaboration between Canada and the United States marks a pivotal step in ensuring the resilience of North America's critical mineral supply chains, insulating them from the volatility of global geopolitics. By investing in domestic resources, both nations are not only securing essential materials for clean energy, technology, and national defense but also promoting sustainable development and fostering long-term partnerships with local communities, including Indigenous groups. This joint effort underscores the importance of diversifying and strengthening mineral supply chains, positioning both countries to be less reliant on uncertain international markets, while contributing to a more stable, secure, and low-carbon global economy.