Global markets could limit N.S. government’s ability to attract more critical mineral development
John Wightman, a seasoned geologist and prospector, made a significant discovery in 1997 when he found lithium in southwest Nova Scotia. Recognizing the potential for a lucrative mine, Wightman embarked on a journey to bring this project to fruition. However, nearly 30 years later, a commercial mine has yet to start operating.
The biggest obstacle standing in the way of getting the lithium operation off the ground is money, according to Wightman. Despite the property near Brazil Lake in Yarmouth County potentially containing more than 10 million tonnes of lithium-containing ore, making it a valuable source for the metal crucial in electric vehicle battery production, the current market conditions make a profitable mine operation unlikely.
The price of lithium experienced a peak in 2022, prompting a rush for mineral claims in Nova Scotia. Unfortunately, the price plummeted in 2023, causing the Brazil Lake project to be put on hold for the past 18 months. Wightman, along with other industry experts, are patiently waiting for more favorable conditions to emerge before proceeding with the mining venture.
The case of the Brazil Lake project sheds light on the significant role that global demand plays in driving the mining industry’s investment decisions. While Premier Tim Houston has expressed a desire to promote resource extraction in the region, there are limitations to how much influence the provincial government can exert on industry choices, especially concerning critical minerals.
Wightman, who is actively involved in several critical mineral projects across Nova Scotia, emphasized that the development of these projects is primarily dictated by economic factors. He praised Houston’s positive stance on mining but also highlighted the need for a streamlined permitting process to expedite the timeline for commercial mining operations.
Scott Eldridge, CEO of Military Metals, echoed the sentiment that global demand, attractive geology, and a favorable political environment are crucial considerations when evaluating new mining projects. His company’s pursuit of an antimony mine near Halifax was motivated by China’s export ban on antimony, creating a demand for alternative sources of the critical mineral.
Military Metals is currently exploring potential antimony deposits in Nova Scotia, among other locations, with the aim of establishing a sustainable and responsible mining operation. While the road to commercial mining may be long and challenging, the promise of meeting global demand for critical minerals remains a driving force for industry players like Wightman and Eldridge.
