Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeCommoditiesMiningFeds to pump $400 million into B.C. smelter to boost critical mineral productionThe agreement also includes a provision for the government to establish offtake rights to a portion of the future germanium, antimony and galliumLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.Teck said its smelter profits at Trail rose to $258 million in the first quarter from $80 million in the same period a year ago Photo by Government of British ColumbiaThe federal government says it intends to make a $400-million “equity-like” investment in Vancouver-headquartered Teck Resources Ltd.’s smelter in Trail, B.C., to boost production of critical minerals.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe agreement in principle, which involves the Canada Growth Fund, Natural Resources Canada and Export Development Canada, also includes a provision for the government to establish offtake rights to a portion of the future germanium, antimony and gallium produced in Trail.All three metals are considered critical for modern high-tech electronics, clean energy and military hardware applications and have supply chains that are heavily controlled by China, which has implemented export restrictions on them at times in recent years.The 130-year-old Trail smelter is one of Canada’s largest and mainly produces zinc and lead from ores mined at Teck’s Red Dog mine in Alaska. It produces 19 products in all, and Teck has said it wants to invest $850 million into the smelter to expand critical mineral production, in particular germanium.“CGF’s investment will support the advancement of the expansion of Canada’s only germanium-producing smelter, a critical mineral essential to applications related to national security,” Yannick Beaudoin, chief executive of Canada Growth Fund Investment Management Inc., said.Germanium has emerged as a key element in fibre-optic communications and possesses properties that enable faster data transmission.Canada supplied 20 per cent of the United States’ germanium imports in 2023, but the relatively small size of the overall market, estimated at $457 million, has made it difficult to draw private investment from larger mining companies, according to Royal Bank of Canada.Antimony is a flame retardant used in munitions and gallium is used to manufacture semiconductor chips for radar, telecom and solar technologies.In April, Teck said its smelter profits at Trail rose to $258 million in the first quarter from $80 million in the same period a year agoThe Canada Growth Fund said in a press release that its potential investment “reflects the intent of both parties to work towards an investment by CGF … that could double Trail’s existing production capacity for germanium and antimony and potentially add new gallium production capacity.”The agreement has not been finalized and the release did not specify what equity-like investment means, but the Canada Growth Fund has been making investments in other mining projects, including a $113-million investment in Montreal-based Nouveau Monde Graphite Inc. in April.Natural Resources Canada said the deal with Teck represents the inaugural transaction under its newly established Canada Critical Minerals Accelerator initiative, which is managed by Export Development Canada.Analysts have been calling for Canada to make more investments in midstream processing so the country can add value to the mined products it exports.Sean De Vries, executive director of the Battery Metals Association of Canada, a non-profit dedicated to building a battery supply chain, said his organization has been hosting workshops about where it to create more midstream processing and it has focused on British Columbia.“One of the advantages when you look at the Trail region and that Teck smelter is it’s been there 100 years,” he said. “They can just do some add-ons. We’re not starting from scratch; they have the skilled workforce and the knowledge base out there already.”gfriedman@postmedia.com Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.