Quebec’s Dumont nickel project on new EU list

The Dumont project in Quebec, one of the world’s largest undeveloped nickel-cobalt deposits, is among global critical mineral developments the European Union wants to invest in as China limits exports. 

The bloc has earmarked €5.5 billion (C$8.6 billion) for 10 battery metal projects including lithium, cobalt, manganese and graphite, while two others target rare earth element production. All of them are outside the EU. 

“We must reduce our dependencies on all countries, particularly on a number of countries like China,” European Commissioner for Industry, Thierry Breton, said during the announcement this week. “The export bans increase our will to diversify.”

The full list of new projects spans 13 locations: Canada, Greenland, Kazakhstan, Norway, Serbia, Ukraine, Zambia, New Caledonia, Brazil, Madagascar, Malawi, South Africa and the United Kingdom.

Since 2023, China has tightened export controls on key minerals including gallium, germanium, graphite, antimony and several rare earths. It also restricted technologies for rare earth magnets and battery processing. The moves reflect growing resource nationalism amid geopolitical tensions.

Quebec nickel

Dumont is 450 km northeast of Montreal near Amos in the Abitibi region. It hosts proven and probable reserves totaling 1.03 billion tonnes grading 0.27% nickel and 107 parts per million cobalt, containing about 2.8 million tonnes of nickel and 110,000 tonnes of cobalt, according to a 2019 feasibility study. 

The project is being advanced by Nion Nickel, a private company managed by Kinterra Capital, a Toronto-based private equity firm. 

Dumont is fully permitted and construction-ready, with plans for an initial production of 33,000 tonnes of nickel per year, ramping up to 50,000 tonnes in a second stage.

Strategic projects

The new list complements the 47 EU strategic projects named in March. The projects outside the EU won’t benefit from its special permitting but they will still have access to finance and contacts with off-takers, BMO Capital Markets said in a note on Wednesday. 

The bloc aims to mine at least 10%, process 40%, and recycle 25% of its annual needs domestically or through strategic partnerships by 2030, according to policy adopted in 2023. 

Anther key addition on the new list is Rio Tinto’s (NYSE, LSE, ASX: RIO) Jadar lithium project in Serbia, which has faced ongoing opposition from environmental groups. The Serbian government revoked its license in 2022, but a local court reinstated Rio Tinto’s permit last year. If developed, Jadar could supply up to 90% of Europe’s lithium demand, according to the EU.

Graphite extraction projects in the Ukraine and Greenland also made the list. Greenland has drawn geopolitical attention in recent months after President Trump expressed interest in purchasing the Danish autonomous territory.