The federal and provincial governments are prepared to financially backstop Frontier Lithium’s proposed refinery in Thunder Bay.
The Sudbury company said March 4 that it’s pocketed letters of intent (LOI) from the two orders of government to help fund construction at the former site of the Thunder Bay generating station.
The refinery is part of Frontier’s integrated plan to mine and ship lithium from its PAK Project, located in a remote area north of Red Lake, to Thunder Bay for processing.
Frontier stresses these LOIs are non-binding and represent only an “initial step in ongoing discussions with the respective government agencies.” The parties are working toward completing a final term sheet.
The price tag to build the refinery was $670 million (US$462 million) in a 2023 study.
Company spokesperson Bora Ugurgel said he couldn’t comment on what government is prepared to contribute nor on the funding split between government and industry until those term sheets are signed.
[More]
