Nechalacho Rare Earth Minerals Project and Nechalaco Indigenous Communities Case Study

Project Overview

In 2021, Australian-owned Vital Metals commenced operations to develop Tardiff deposits and explore the Nechalacho Rare Earth Project in Northwest Territories, Canada.

Note: Rare earth elements are chemical elements including yttrium and the 15 lanthanide elements (lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium). There are multiple uses of rare earths, including for rechargeable batteries for electric vehicles, catalytic converters, optical glass to mobile phones, lamps and lighting, and for materials and technologies such as for communications, defense and healthcare.

Site and Production Goals

According to Vital, Tardiff is one of the highest-grade rare earth deposits in the world. The site, which sits about 100 km southeast of Yellowknife, produces rare earth elements (REE), critical minerals used in electronics, green energy, automotive, aerospace, military defense and more. The goal is “to become the lowest cost producer of mixed rare earth oxide outside of China by developing one of the highest-grade rare earth deposits in the world, and the only rare earth project capable of beneficiation solely by ore sorting.”

Establishment and Local Operations

Vital set up its production subsidiary, Cheetah Resources Corporation, in Yellowknife in 2019 to initially mine the North T Zone and prepare the site for eventual expansion to the much larger Tardiff Zone. Vital appears to be doing well in keeping Nechalacho’s Indigenous stakeholders apprised of what’s happening.

Indigenous Leadership and Participation

This is the first project in Canada where an Indigenous company, the Yellowknives Dene’s Det’on Cho Corporation, is contracted to do mining operations on its own traditional territory. In 2021, Cheetah employed a seasonal workforce of 58, with some 70% of Indigenous heritage from 10 communities. Approximately 162 businesses supported Cheetah’s first year of operations, with 85% of its buying sourced from Indigenous suppliers.

Employment, Inclusion, and Sustainability

In general, the Yellowknives Dene First Nation plays a big part in the Nechalacho Rare Earth Mine. The rare earth mine is the first to have a huge part be Indigenous-operated and included. The employment rate is 75% of Indigenous people, with 5% per cent being youth. The mine is said to be more environmentally friendly, one of the greenest mines for rare earth minerals. The mine will include more culture with both Indigenous and international Peoples, learning from each other and most importantly the land.