Canada is strengthening the infrastructure needed to move its critical minerals from the ground to global markets, announcing nearly $5 million in federal funding to help advance transportation and power connections for a major phosphate mining project in Quebec’s Saguenay–Lac-Saint-Jean region.

Announced on August 5 by Claude Guay, Parliamentary Secretary to the Minister of Energy and Natural Resources, the investment comes through Natural Resources Canada’s First and Last Mile Fund and will support infrastructure planning for First Phosphate’s Bégin–Lamarche phosphate mine. The company is matching the federal contribution, bringing the combined investment to nearly $10 million.

The funding will support feasibility and environmental studies, along with engagement with Indigenous and local communities, to determine the best routes and designs for new power transmission and transportation infrastructure. The planned connections would link the future mine to regional rail networks and the Port of Saguenay, addressing infrastructure gaps that often delay resource development and helping accelerate responsible project delivery.

The investment reflects Canada’s broader strategy to strengthen domestic supply chains as global demand for critical minerals continues to rise. Quebec already produces nearly one-fifth of Canada’s minerals and holds significant phosphate deposits, a key ingredient in lithium iron phosphate (LFP) batteries used in electric vehicles, renewable energy storage, off-grid power systems and emergency backup applications.

The project is also expected to generate significant economic benefits. Construction of the supporting infrastructure is anticipated to create approximately 500 jobs, while the mine itself is expected to support approximately 300 permanent jobs once production begins in 2029.

As the federal government continues investing in enabling infrastructure, it aims to build more resilient and sovereign supply chains, reduce reliance on non-allied sources of critical minerals, support Indigenous and community participation, and create long-term economic opportunities across Canada.

Highlighting the broader significance of the investment, Minister of Energy and Natural Resources Tim Hodgson said, “Canada has what the world wants, and we are building the infrastructure required to get those resources to diverse markets. Investments like these help unlock our full potential by connecting projects to the infrastructure they need to move forward — creating jobs, strengthening supply chains and delivering lasting prosperity for Quebec and Canada.”

Parliamentary Secretary Claude Guay emphasized the opportunity for both the province and the country, stating, “Canada and Quebec have an opportunity to become a reliable supplier of the critical minerals the world needs for the technologies and industries of the future. We’re supporting critical minerals projects in Saguenay–Lac-Saint-Jean and beyond to strengthen Canadian supply chains, create economic opportunities and build Canada Strong.”

For First Phosphate, the announcement also signals growing confidence in the project. Company President Armand MacKenzie said, “This support from the Government of Canada for First Phosphate sends a strong message to our investors and partners in Quebec, Canada and internationally. It reinforces confidence in our ability to carry out this strategic mining project and deliver our high-purity igneous phosphate to the market on schedule.”