According to the Major Projects Office, a final investment decision could be made on the Sisson mine next year, with construction beginning in 2029.

The project was referred to the special government agency last fall, and Natural Resources Minister Tim Hodgson shared the target timeline with a House committee Thursday. 

“That wouldn’t be building at speeds never seen before generations, I guess,” commented Opposition Shadow Minister Shannon Stubbs after hearing the update.

The federal government approved the project in 2017, and proponent Northcliff Resources has a royalty agreement in place with Wolastoqey Nation.

Still, with cheap Chinese tungsten and molybdenum bringing down global prices, Sisson is risky for investors and has stalled for almost a decade despite having regulatory approvals and some Indigenous support.

Last week, Northcliff Resources announced it would launch pre-construction programs at the site, thanks to a US$15 million award from the U.S. Defense Production Act and C$8.2 million from Canada.

Towards a buyers club?

Tungsten and molybdenum are strategic priorities for North American defense and manufacturing.

Canada recently committed to designating certain critical minerals as a national security priority under the Defence Production Act. 

This means it could eventually help projects like Sisson by guaranteeing a buyer and a price floor, effectively shielding it from the unforgiving cyclical prices driven by Chinese dominance.

Plans are in the works to create a buyers club with G7 members that could help set price floors or long-term buying agreements, but no formal announcement has been made yet, and Hodgson did not have updates to share before the House committee.

In an update released last week, the company said it was working with the Major Projects Office to explore opportunities for financial and regulatory assistance, including talks with export credit agencies. 

New Brunswick’s Minister of Indigenous Affairs, Keith Chiasson, said last fall that the agreement with Wolastoqey Nation for support on Sisson mine could be revisited to include equity in lieu of royalties. 

But Northcliff Resources had nothing new to share on that front in its last communication, saying it is continuing outreach with communities and finalizing “an engagement plan for the potential operation at Sisson.”