Frontier Lithium’s (TSXV: FL) C$943 million capex PAK project is Ontario’s first entry in a program to approve mines in two years.
Provincial Energy and Mines Minister Stephen Lecce announced the One Project, One Process (1P1P) program Oct. 17, vowing to cut permitting time for advanced projects in half. Under Premier Doug Ford, the province has joined a chorus of Western governments – including the Trump Administration – in slashing red tape and promoting critical minerals to challenge Chinese control of the industry.
“Clarity and predictability in permitting are key to unlocking investment, accelerating project timelines and delivering on Canada’s critical minerals strategy,” Frontier President and CEO Trevor Walker said in a release on Wednesday. “We are hoping to achieve final investment decision in 2027 and lithium production in 2030-2031,” Walker said by email via a spokesperson.
Frontier is working with Japanese conglomerate Mitsubishi to develop PAK, which is located more than 1,400 km northwest of Toronto, near the Manitoba-Ontario border. The high-grade, large-scale hard rock lithium project would produce 200,000 tonnes of spodumene concentrate annually over a 31-year mine life and generate pre-tax earnings of C$285 million a year, according to a feasibility study issued in May. Frontier has pegged an after-tax internal rate of return of 18%.
Frontier shares shot up 13% to C$0.76 apiece on the Toronto Stock Exchange Thursday, valuing the company at about C$174 million.
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