Canadian Energy Metals says a large shale deposit near Tisdale could help Saskatchewan move beyond resource extraction and into value-added alumina production, but company officials say financing, permitting, and power needs remain major factors as the project advances.
Company president and CEO Christopher Hopkins outlined the Thor Project during a Prince Albert and District Chamber of Commerce Lunch and Learn on Wednesday, May 13, at the Coronet Hotel.
Hopkins told the audience the project is based on polymetallic shale, not bauxite, which is the ore used in most aluminium production around the world.
Traditional aluminium production depends on bauxite, which Hopkins described as a much dirtier process because it can disturb large areas of land, use large amounts of water and energy, and leave behind difficult waste materials. He said Canadian Energy Metals is trying to avoid that legacy by using Saskatchewan shale and a closed-loop process designed to keep acids contained and reduce toxic waste.
“What we have developed with our engineers is a closed-loop system that contains those acids, doesn’t let them out, and results in a benign or non-toxic waste product,” he said.
He said the company is focused first on alumina, a white powder used to make aluminium, but said the deposit also contains other metals.
“It is a polymetallic shale,” Hopkins said during a media scrum after the presentation. “There is about 11 metals of interest. We can’t get them all. So we work on a priority basis, based on value.”
Hopkins said the company is studying how to separate and purify other metals without interfering with alumina recovery. He said some of those materials could also become part of the project’s business case.
“We’ve got multiple byproducts, most of which are saleable products,” he said.
A Canadian Energy Metals presentation slide shows preliminary Thor Project figures, including 16.5 million tonnes of average ore throughput per year, 1.8 million tonnes of alumina production per year, a 25-year initial mine life and an estimated US$6.3 billion in initial capital costs.
During the presentation, Hopkins said the project area is north of Tisdale and covers about 1,100 square miles. He said Canadian Energy Metals has drilled 157 holes so far and continues to study the deposit.
The company is pitching Thor as more than a mining project. Hopkins said the long-term vision is a “mine to metals” concept that could keep more processing and manufacturing value in Saskatchewan instead of shipping raw or semi-processed material elsewhere.
The presentation described that goal as a shift from resource extraction to value-added industrial leadership.
Canadian Energy Metals has also purchased the former West Steel facility in Tisdale, a 37,000-square-foot building on 13 acres. Hopkins said work has already begun at the site, which is expected to support research and development.
“What we bought was a facility where we can house our research and development centre,” he said. “There’s a lot of what we do as research.”
Hopkins said the company also sees the Tisdale facility as a commercial opportunity because it already knows how to produce high-purity alumina.
During the question period, one audience member questioned whether the project could follow past resource proposals that failed to materialize. A company representative responded that those projects did not have the same team behind them, while Hopkins said Canadian Energy Metals is taking an aggressive approach to development.
“We’re being very aggressive in our approach,” Hopkins said. “Most people are surprised at the pace that we’re getting
The company’s short-term plan includes a pre-feasibility study, a demonstration plant, and securing a strategic partner. Hopkins said the pre-feasibility study will examine capital and operating costs in more detail than the earlier preliminary economic assessment.
The presentation listed Hatch, Stantec Consulting Ltd., and the Saskatchewan Research Council among the technical and advisory groups connected to the work. Hopkins said pilot work has been carried out at SRC facilities in Saskatoon.
Hopkins said the company is not trying to repeat the environmental problems associated with traditional bauxite processing.
“I do not want a legacy like the bauxite industries,” he said.
The presentation also listed Indigenous and community engagement as part of the company’s strategy, including regular meetings with First Nation community leadership, employment and retention planning, and shared economic benefit goals.
Mike de Carle, vice-president of finance for Canadian Energy Metals, said the project could have a significant impact if it advances.
“There’s a significant strategic metals involved, principally led by aluminium,” de Carle said. “There’s a significant processing angle as well.”
De Carle said that could translate into economic growth, jobs, and improved livability in Saskatchewan, while adding that risks still have to be worked through in a careful way.
Hopkins said one of the larger long-term questions is power. Producing alumina would require electricity, but producing aluminium metal through smelting would require far more.
“The major use of electricity is smelting,” Hopkins said. “Aluminium is basically solid electricity.”
Hopkins said the company has signed on with two global financial groups as it looks at ways to move the project ahead. Possible options include partnerships, an initial public offering, or selling projects, depending on what best supports development.
He said the provincial government has been supportive, but added the company remains subject to the same rules and approval processes as other projects.
arjun.pillai@paherald.sk.ca
