Will Canada experience a new gold rush?
We explain what graphite means for a carbon-free economy and what it will bring to Canada.
A large deposit of valuable minerals known as the Lac de l'Il Magmatic Complex is located two hours away from Ottawa. Just yesterday, this place turned into a battlefield for leadership in the carbon-free economy as graphite deposits were discovered. This is a critical component of electric motors and batteries.
The future of the world industry lies with graphite, as 77 countries have pledged to transition to a "green economy" by 2050. This is a type of production that reduces environmental pollution and carbon dioxide emissions into the atmosphere. Some countries, including Canada, have already introduced a carbon tax. Now Canadians who want to drive regular cars must pay an additional tax on fuel.
Experts predict a boom in the popularity of electric transportation in five years. Hugh Jackman, the director of the mining company Northern Graphite, has similar expectations. He believes that graphite will become critically important for world markets within 3-4 years.
The open deposit in Canada is significant for the future of the entire Western world. It surpasses all other graphite deposits in North America in volume and may even compete with China, which is the dominant supplier of this mineral.
However, Jackman says his company lacks the CAD 150 million investment to increase production volumes. Private investors are afraid to take on such risks, but governments, including America, have already shown interest. The US Department of Defense has stated that it is ready to invest in the development of the deposit. The Canadian Ministry of Natural Resources also expressed a desire to support the project, but it cannot fully finance it.
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