Canada Nickel files Crawford project’s federal impact statement

Canada Nickel (TSXV: CNC; US-OTC: CNIKF) has taken a key step toward advancing its flagship Crawford nickel sulphide project in northern Ontario, kicking off the process of submitting a federal impact statement for the project, which hosts the world’s second largest nickel reserves.

The document’s filing, which the company expects to complete within the next six weeks, outlines the project’s potential environmental, social and economic impacts. It also includes mitigation measures to address potential negative impacts, highlighting the company’s commitment to responsible mining practices. The assessment is a critical requirement for obtaining federal permits, which Canada Nickel aims to secure by 2025. 

“We’re grateful for the strong partnerships we’ve built with Indigenous nations and community stakeholders, whose contributions have been essential in shaping the submission,” CEO Mark Selby said in a release on Wednesday. “Their input helped ensure the project aligns with our shared values of sustainability and regional economic growth.”

The submission comes almost one year after Canada Nickel completed a feasibility study for the Crawford project, which outlined an  operation with an after-tax net present value (8% discount) at US$2.6 billion and an internal rate of return of 18.3%. The mine is to consist of two open pits complemented by an on-site mill, to be completed in two phases to allow for throughput ramp-up. Total capital cost for the two phases is estimated at US$3.5 billion. Over a 41-year life, the mine is to produce 3.5 billion lb. of nickel, 52.9 million lb. of cobalt, 490,000 oz. of palladium and platinum, 58 million tonnes of iron, and 6.2 million lb. of chromium.

Peak production at Crawford is expected in year 11, when autonomous trucks and remotely operated shovels are fully integrated into the operation. Crawford is expected to begin production in 2027, positioning the company as a key player in supplying the minerals needed for a low-carbon economy.

Canada Nickel has attracted the backing of top players in the mining and batteries markets, including Agnico Eagle Mines (TSX: AEM; NYSE: AEM), Canada’s largest gold producer, which now owns 12% of Canada Nickel, and South Korea’s Samsung SDI. 

Crawford hosts one of the world’s largest resources of the battery metal, totalling 2.4 billion tonnes at 0.24% nickel for 13.3 billion lb. of contained nickel, according to the feasibility study. 

As global demand for critical minerals increases, the Crawford project is expected to play an important role in the transition to a low-carbon economy. Nickel, in particular, is a key component in the production of batteries for electric vehicles (EVs), making Canada Nickel project’s progress crucial to meeting rising global demand.

Canada Nickel shares traded for $1.08 apiece on Thursday morning in Toronto, valuing the company at $193.9 million. Its shares traded in a 52-week range of 89¢ and $2.24.