Canada Nickel (TSXV: CNC; US-OTC: CNIKF) has secured federal approval to proceed with its proposed Crawford polymetallic mine in Ontario, marking a significant step in Canada's national push to accelerate critical minerals development, The Globe and Mail reported.

According to the Globe and Mail, which cited unidentified sources familiar with the matter, Ottawa approved the Crawford project under the Impact Assessment Act, with a formal announcement expected on Friday. The decision would make Crawford the first mining project authorized under the federal legislation since it came into force in 2019.

The federal government referred the project to its Major Projects Office in late 2025 to expedite permitting. Earlier this year, Ontario designated Crawford under its "One Project, One Process" (1P1P) fast-track permit framework, a provincial initiative aimed at streamlining approvals for major resource projects.

Project Overview

Located approximately 40 km north of Timmins, Ontario, Crawford is believed to hold the world's second-largest nickel reserves and resources. According to a feasibility study completed in October 2023, the mine would cost $3.5 billion (C$4.9 billion) to build across two stages.

Over an operating life of at least 41 years, Crawford is projected to produce 1.6 million tonnes of nickel, 58 million tonnes of iron, and 2.8 million tonnes of chrome, along with cobalt, palladium, and platinum. Canada Nickel reports an estimated post-tax net present value of $2.8 billion and an after-tax internal rate of return of 17.6%.

Financing Package

While the federal approval represents a major regulatory milestone, Canada Nickel still faces the challenge of assembling a multibillion-dollar financing package and making a formal construction decision. The $2.5 billion secured to date leaves roughly $1 billion still to be raised against the project's estimated $3.5 billion capital cost.

The company has already secured $2.5 billion in financing for Crawford, comprising $500 million in debt from Export Development Canada, an additional C$500 million from an unnamed Canadian financial institution, approximately $600 million in tax credits tied to critical minerals and carbon capture, and an option agreement under which Samsung SDI — one of the world's largest electric vehicle battery manufacturers — could acquire a 10% interest for $100 million.

Broader Context

The approval comes as Prime Minister Mark Carney's government seeks to accelerate approvals for strategic resource projects amid ongoing trade tensions with the United States and growing emphasis on securing domestic critical mineral supply chains. Nickel remains essential for stainless steel production and electric vehicle batteries, and Indonesia's dominant position in global supply has intensified interest in developing new Western sources of the metal.

Provincial Fast-Tracking

In January, Crawford became the second project advanced under Ontario's 1P1P framework. Frontier Lithium's (TSXV: FL; US-OTC: LITOF) PAK project was added three months earlier. With the expedited permitting process, Ontario has expressed hope that construction on Crawford could begin by the end of the year, potentially allowing the mine to open by the fourth quarter of 2028, provincial Energy and Mines Minister Stephen Lecce said in January.

Crawford is also notable for its projected low carbon dioxide (CO2) emissions, achieved through a planned in-process tailings carbonization method. The process involves injecting concentrated CO2 into tailings within the mill, geologically sequestering carbon during processing rather than afterward. According to Canada Nickel, the project could capture and store 1.5 million tonnes of carbon per year.