Preproduction mining company Frontier Lithium has published the findings of an independent socioeconomic assessment for its proposed PAK lithium project in north-western Ontario, detailing the long-term economic contribution expected from the mine, mill and associated conversion facility.
The study, completed by EY, draws on data from the project’s definitive feasibility study for the mine and mill and the prefeasibility work for a downstream conversion plant in Thunder Bay.
Frontier Lithium president and CEO Trevor Walker said on Monday that the development would deliver substantial regional benefits. “The PAK lithium project will deliver meaningful benefits to Northwestern Ontario, driving economic growth, employment, and support for local businesses,” he said. “These positive impacts will cascade across the region, strengthening community prosperity and enhancing economic vitality.”
Walker added that the project aligned with Canada’s and Ontario’s critical minerals strategies. “At a broader level, the project supports multiple economic and national security and defence objectives … reinforcing the strength of North America’s battery supply chain and positioning Canada as a key contributor in the global energy transition,” he noted.
ECONOMIC IMPACTS
According to the report, the project would generate significant GDP contributions, employment and tax revenue over a 33-year life, with impacts assessed nationally, provincially and regionally.
For the mine and mill, the construction phase – estimated at three years – would contribute C$931-million to national GDP and support 1 232 full-time equivalent jobs. Ontario would see C$708-million in GDP and 917 jobs, while north-western Ontario would gain C$188-million in GDP and 568 jobs.
During the 30-year operating phase, national GDP impact is estimated at C$93-million a year, with 535 jobs supported. Ontario would see C$75-million in GDP and 390 jobs, and the region C$23-million in GDP and 162 jobs.
The two-year construction of the Thunder Bay conversion facility is estimated to contribute C$575-million to national GDP and support 931 jobs. Ontario would receive C$468-million in GDP and 814 jobs, and the regional economy C$134-million and 557 jobs.
Once operational, the conversion plant is expected to contribute C$89.5-million in annual national GDP and support 415 jobs. Provincial impacts include C$69-million in GDP and 304 jobs, while Northwestern Ontario is expected to gain C$23.4-million and 187 jobs.
The report highlights contributions to skills development and long-term employment, including opportunities for Indigenous workers in trades and technical roles.
It also identifies potential benefits for community infrastructure, health and education. Frontier Lithium said it aimed to reduce environmental impacts through technology and waste-management practices.
“Frontier Lithium’s PAK Project is more than a mining operation. It is a strategic investment that strengthens Canada’s critical minerals supply chain, enhances national resiliency, and drives competitiveness while unlocking long-term economic growth,” said Mauricio Zelaya, EY Canada national economics leader.