Critical Minerals Road Funded
Canada Approves C$50 Million for Nico Access Road, Boosting Critical Mineral Development
Anonymous
Key Points
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NICO's reserves include 102 million pounds of bismuth, representing more than 12% of global bismuth reserves.
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In May, the Wek’èezhìì Land and Water Board granted the land-use permit and water licence required to build and operate the NICO access road across Tłı̨chǫ private lands.
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The First and Last Mile Fund will provide an additional C$200,000 to the Tłı̨chǫ government for a traditional knowledge study tied to the road as part of the community engagement work.
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Fortune described the funding as turning one of Nico's biggest near-term gaps into a funded construction item, with a feasibility update due next month, front-end engineering by early next year, and a possible construction decision after financing is secured.
Canada's federal government has conditionally approved up to C$50 million to help build a 51-kilometer access road connecting Fortune Minerals' NICO cobalt-gold-bismuth-copper project to the Northwest Territories highway system near Whatì, The Northern Miner reported. The funding, announced June 26 by Energy and Natural Resources Minister Tim Hodgson at a conference in Yellowknife, covers 75% of eligible construction costs through Natural Resources Canada's First and Last Mile Fund.
Fortune Minerals CEO Robin Goad called the decision a turning point, saying it turns one of NICO's biggest near-term gaps into a funded construction item. An updated feasibility study is due next month, with front-end engineering planned for early 2027 and a possible construction decision to follow once financing is secured, according to Mining.com.
A 51-Kilometer Road to Unlock Stranded Minerals
The NICO project sits about 160 km northwest of Yellowknife. Despite holding 33.1 million tonnes of mineral reserves, it has long been stuck without road access to ship concentrates to market. The new road would connect the mine site directly to the NWT highway network, the backbone of which — the 97-km Tłı̨chǫ Highway to Whatì — only opened in November 2021, according to Mining News North.
Minister Hodgson framed the investment in national terms. "Canada is ready to build the infrastructure that unlocks our full critical minerals potential," he said, per Mining.com. Analysts at Fundamental Research noted the C$50M grant significantly lowers capital costs, improving the project's internal rate of return and making it more attractive to final project financiers.
NICO Holds Over 12% of the World's Bismuth
NICO is not a typical mine. Its reserves include 102 million pounds of bismuth — more than 12% of all known global bismuth reserves — making it the largest primary bismuth deposit in the world, according to The Northern Miner. Bismuth is used in non-toxic ammunition and medical applications, and is currently dominated by Chinese supply chains.
Fortune plans to process concentrates at a hydrometallurgical refinery in Lamont County, Alberta. That mine-to-refinery model is designed to cut North American dependence on foreign processing. The NICO project also received support under the U.S. Defense Production Act, signaling its strategic importance to North American security supply chains, Mining.com reported.
Tłı̨chǫ Government Gets a Seat — and a Study
Fortune and the Tłı̨chǫ Government are building the road as a joint venture. In May, the Wek'èezhìì Land and Water Board granted the land-use permit and water licence needed to cross Tłı̨chǫ private lands, clearing a key regulatory hurdle, Mining News North reported. The road crosses territory that holds deep cultural significance for Tłı̨chǫ citizens.
As part of the deal, the Tłı̨chǫ Government will receive a separate C$200,000 grant for a traditional knowledge study tied to the road. The study will help ensure construction respects cultural sites and caribou migration routes. The Tłı̨chǫ welcomed the funding but stressed the project must still meet strict standards to protect land, water, and wildlife, per The Northern Miner.
Ottawa Bets on Infrastructure Over Subsidies for the North
The First and Last Mile Fund reflects a shift in how Ottawa approaches remote mineral development. Rather than subsidizing mine operations directly, the federal government is funding the roads and infrastructure needed to make remote deposits viable in the first place. The NWT's diamond industry is declining, and officials see critical minerals as the territory's next economic engine, Mining.com noted.
There is also a community angle. Fortune and the Tłı̨chǫ Government are exploring extending the road further to Gamètì, a remote community that currently has no all-season road access. Such an extension could lower the cost of living there significantly. The project still requires an Impact Benefit Agreement with the Tłı̨chǫ before construction can begin, according to Mining News North.
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