To further the development of critical minerals in Newfoundland and Labrador, the Honourable Andrew Parsons, KC, Minister of Industry, Energy and Technology, today announced the issuing of an Expression of Interest for the potential development of the Julienne Lake iron ore deposit in western Labrador.
The Julienne Lake iron ore deposit is a large, undeveloped iron ore deposit approximately 25 kilometres from the town of Labrador City and Wabush. It is an Exempt Mineral Land (EML) meaning that its mineral rights belong to the Government of Newfoundland and Labrador.
The deposit has the potential to support a high-purity iron ore mining operation for decades which would result in significant economic and employment opportunities for the province, particularly Labrador. It is positioned to play a critical role as a new strategic raw material supply for green steel manufacturing to support global demand for decarbonized steel.
The Julienne Lake deposit hosts total Measured and Indicated Resources of 867 million tonnes at 33.7 per cent iron, plus an Inferred Resource of 299 million tonnes at 34.1 per cent iron.
Detailed proposals will be accepted from those who have provided expressions of interest and who have a demonstrated ability to bring the Julienne Lake project to, at a minimum, a completed feasibility study stage. The Expression of Interest can be viewed here and the deadline for submissions is December 6, 2024, at 4:30 p.m. NST. To learn more, please see the backgrounder below.
Newfoundland and Labrador’s Critical Minerals Plan has identified the presence of 34 minerals in the province. These are minerals present in the province that are needed by Canada and other jurisdictions, and which are required as part of the energy transition, climate change action and adaptation. This province has been a leader in the designation of high-purity iron ore as a critical mineral, with both Quebec and the Government of Canada also identifying high-purity iron ore as a critical mineral. Due to its advantaged position in reducing greenhouse gas emissions in steel manufacturing and the potential for further value-added activity as a green steel input, the development of Julienne Lake could play an important role in the green transition.
The mineral industry is an important contributor to Newfoundland and Labrador’s economy, with 8,500 persons employed in 2023 and 7.3 per cent of the 2022 provincial GDP. Mineral exploration and development primarily occurs in rural and remote regions of the province, creating opportunities for local businesses and facilitating investments in infrastructure, education and health care.
Quotes
“The demand for critical minerals is rising across the globe amidst the transition to the green economy. Newfoundland and Labrador is well-positioned to maximize this opportunity to secure economic and social benefits for the province. By exploring the potential of Julienne Lake, which represents a very rare and unique opportunity, we are providing further potential for economic development in this province and doing our part to support the global green transition.”
Honourable Andrew Parsons, KC
Minister of Industry, Energy and Technology
“We welcome and support the Government of Newfoundland and Labrador’s decision to invite Expressions of Interest for advancing this unique opportunity. With high-purity iron’s recent addition to Canada’s Critical Minerals list, the Julienne Lake EML represents a significant opportunity to potentially advance an undeveloped iron ore deposit situated near an established mining jurisdiction. This decision enables the mineral resources community to be better positioned to achieve sustainable resource development and maximize benefit for years to come.”
Amanda McCallum
Mining Industry NL
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BACKGROUNDER
Call for Expressions of Interest on Exempt Mineral Land: The Julienne Lake Iron Ore Deposit
The Government of Newfoundland and Labrador, through the Minister of Industry, Energy and Technology, invites Expressions of Interest in submitting proposals towards obtaining the mineral rights and advancing development of the Julienne Lake EML. The deadline for receipt of such expressions is December 6, 2024, 4:30 p.m. NST.
The Julienne Lake iron ore deposit in western Labrador, in the province of Newfoundland and Labrador, Canada, has a National Instrument 43-101 (NI 43-101) compliant mineral resource estimate of total Measured and Indicated Resources of 867 million tonnes at 33.7 per cent iron, plus an Inferred Resource of 299 million tonnes at 34.1 per cent iron. It is located in an established iron ore mining district with modern towns, supported by clean renewable hydroelectric energy and accessible shipping infrastructure, in a province ranked as one of the top 10 mining jurisdictions in the world.
Newfoundland and Labrador’s mineral industry is a key economic driver as the industry continues to grow. In 2023, there were 8,500 persons employed, $4.4 billion in mineral shipments, and $220 million in exploration expenditures. The iron ore industry in western Labrador is the most significant contributor to the provincial mineral industry, contributing over $3.7 billion in mineral shipments and 2,600 person years of employment annually. Within Labrador City and Wabush (collectively known as Labrador West) there is an established iron ore mining supply and service sector supporting existing and developing projects in the region. Approximately 30 per cent of Canada’s iron ore is produced from Labrador.
Current global steel production represents about eight per cent of global greenhouse gas emissions and high-purity iron ore comprises only 15 per cent of the world’s supply. In addition to existing steel manufacturing, significant steel production will be required for the green energy transition with some order-of-magnitude projections into the billions of tonnes.
These factors, combined with preliminary exploration and test work completed to date, position the Julienne Lake deposit as a new strategic feedstock for green steel manufacturing to support global demand for decarbonized steel.
Exempt Mineral Land (EML) indicates an area where the mineral rights are reserved for the Crown. The Julienne Lake iron ore deposit, encompassing approximately 334 hectares, was designated EML under the Mineral Act of Newfoundland and Labrador when the act came into effect in 1977.
Detailed proposals will be solicited from those who have provided successful Expressions of Interest and demonstrated the ability to bring the Julienne Lake project to, at a minimum, a completed feasibility study stage. Preference is, however, to see the property developed into an operating mine with dedicated processing, utilizing best available technologies. The ability to add further value-added facilities for development of a green steel supply chain, in a timely manner, confers a distinct advantage.
The proponent with the successful detailed proposal will be granted exclusive mineral rights under the Mineral Act either as an Extended Map Staked Licence or a Mining Lease, as appropriate. The proponent’s commitments towards development will be incorporated as terms and conditions of the licence or lease.
Full details of the location, access, geology, history of development, recent exploration work, and resources are provided in the technical report by MPH Consulting Limited (MPH), and any new geoscience data collected are available online on the Department of Industry, Energy and Technology (IET) website. A web page listing known technical information of the Julienne Lake EML can be found at www.gov.nl.ca/iet/mines/julienne/.
It is noted that there are assertions of Indigenous rights with respect to this area. The Government of Newfoundland and Labrador is committed to consulting Indigenous organizations when it contemplates making land and resource development decisions that have the potential to adversely impact asserted rights. As such, and in accordance with the Government of Newfoundland and Labrador’s Aboriginal Consultation Policy on Land and Resource Development Decisions, Indigenous consultation may be required in relation to development in this area. Early engagement with Indigenous organizations is encouraged.