What is the NICO Project in Northwest Territories?
The NICO Project represents one of North America's most strategic mining developments, situated in Canada's resource-rich Northwest Territories. Fortune Minerals Limited (TSX: FT) is developing this advanced-stage project, which contains a polymetallic deposit of cobalt, gold, bismuth, and copper. What makes NICO particularly significant is its potential to establish North America's first domestic bismuth supply chain, addressing critical vulnerabilities in the continent's mineral security.
The deposit boasts impressive reserves of 33.1 million tonnes with grades of 0.11% cobalt, 1.03 g/t gold, 0.14% bismuth, and 0.04% copper. These reserves constitute approximately 12% of global bismuth reserves, positioning NICO as one of the largest undeveloped bismuth resources outside of China.
The project has garnered substantial government support, reflecting its strategic importance. Fortune Minerals has secured C$7.5 million from Natural Resources Canada and an additional $6.38 million from the U.S. Department of Defense specifically for cobalt production capabilities. This funding covers approximately 75% of the C$10 million required for additional engineering and metallurgical test work, demonstrating the project's significance to both Canadian and American strategic interests.
Robin Goad, CEO of Fortune Minerals, highlights the project's built-in economic resilience: "We have four metals, and the fact that we have significant gold in our asset provides strong mitigation against metal price volatility." This diversification is crucial in the notoriously cyclical mining sector, where single-commodity producers often struggle during market downturns.
Why is Bismuth Suddenly Important?
The Global Bismuth Supply Crisis
Bismuth has emerged from relative obscurity to become a critical focus in the global minerals market. In March 2025, bismuth prices reached unprecedented heights, having increased more than six-fold since January of the same year. This dramatic price surge wasn't merely the result of typical market fluctuations but stemmed from a significant geopolitical development.
In February 2025, China implemented strict export controls on bismuth along with four other strategic metals: tungsten, tellurium, molybdenum, and indium. This move sent shockwaves through global supply chains, as China currently controls approximately 90% of global refined bismuth production and hosts roughly 80% of global bismuth mining operations.
The export restrictions were part of broader trade tensions, with Robin Goad noting: "Chinese export restrictions have caused people to pay through the nose for bismuth." This supply disruption exposed a critical vulnerability in Western supply chains that had become overly dependent on Chinese sources for these essential minerals.
Metallurgical experts have observed that bismuth's production as a by-product of lead, tungsten, and copper mining has historically kept prices relatively low, which discouraged dedicated bismuth mine development outside China. This production model is now proving problematic as demand increases while supply channels narrow.
Strategic Applications of Bismuth
Bismuth's strategic importance extends far beyond its price volatility. This element possesses unique physical and chemical properties that make it invaluable across multiple industries. In atomic research, bismuth's nuclear properties make it useful in certain reactor applications. The pharmaceutical industry relies on bismuth compounds for medications treating ulcers, indigestion, and other gastrointestinal conditions.
The metal has gained significant attention as a non-toxic alternative to lead. With similar physical characteristics – including density, malleability, and low melting point – bismuth can replace lead in applications where toxicity concerns exist. This substitution potential has grown increasingly important as environmental and health regulations worldwide continue to restrict lead usage.
The cosmetics industry incorporates bismuth oxychloride for its pearlescent properties in makeup products. Meanwhile, in electronics manufacturing, bismuth-containing solders provide lead-free alternatives necessary for compliance with regulations like the European Union's Restriction of Hazardous Substances (RoHS) directive.
Both the United States and Canada have designated bismuth as a critical mineral, acknowledging its importance to national security and economic prosperity. This designation provides policy support for domestic production initiatives like the NICO Project. Understanding the critical minerals race helps explain why bismuth has gained such strategic significance.
The NICO Project's Strategic Importance
Resource Potential and Reserves
The NICO Project stands as a potential cornerstone for North American critical mineral security. With reserves comprising 12% of global bismuth resources, it represents the continent's most significant opportunity to reduce dependence on Chinese imports. Beyond bismuth, the deposit contains 1.1 million in-situ ounces of gold, providing substantial economic enhancement to the project's viability.
The total mineral reserve at NICO totals 33.1 million tonnes, with a diverse grade profile featuring 0.11% cobalt, 1.03 g/t gold, 0.14% bismuth, and 0.04% copper. This polymetallic nature differentiates NICO from many mining projects that focus on a single commodity, offering natural hedging against price volatility in any one metal.
Geological assessments indicate that the NICO deposit formed through magmatic-hydrothermal processes, creating a mineral system with unusual concentration and co-occurrence of these four metals. Such deposits are geologically rare, adding to the site's strategic value. The mineralization is hosted within iron formation and brecciated units that have undergone multiple phases of alteration and enrichment.
Government Support and Funding
The strategic importance of the nico project in northwest territories is underscored by substantial government backing from both Canadian and American authorities. Fortune Minerals has secured C$7.5 million ($5.5 million) from Natural Resources Canada through its Critical Minerals Research, Development and Demonstration program. Additionally, the U.S. Department of Defense has awarded $6.38 million specifically for advancing the project's cobalt production capabilities.
This combined funding covers approximately 75% of the C$10 million needed for additional engineering and test work, demonstrating unprecedented bi-national support for a mining project. The involvement of the U.S. Department of Defense is particularly noteworthy, as it signals recognition of the project's importance to national security supply chains.
These investments reflect growing awareness among Western governments about the vulnerabilities in their critical mineral supply chains. As geopolitical tensions increase and trade patterns evolve, securing domestic sources of strategic minerals has become a policy priority on both sides of the Canada-U.S. border.
How Will the NICO Project Operate?
Integrated Mining and Processing Plan
Fortune Minerals has designed NICO as a vertically integrated project that spans from extraction to final processing. The operation will begin with a combined open-pit and underground mining operation in the Northwest Territories. This hybrid approach optimizes resource recovery while minimizing environmental impacts.
An on-site concentrator will process the mined material to produce a bulk concentrate containing all four metals. This concentration step reduces transportation costs by eliminating waste material before shipping. The project includes a well-planned transportation route to move the concentrate from the mine site to a railway connection at Enterprise, Northwest Territories.
From there, the concentrate will travel to a proposed refinery site in Lamont County, Alberta. This location was strategically chosen for its existing infrastructure and proximity to skilled labor markets. Fortune Minerals has indicated potential collaboration with mining giant Rio Tinto on refinery development, leveraging shared expertise and potentially reducing capital costs through partnership.
The integration of mining and processing operations under one corporate umbrella gives Fortune Minerals greater control over product specifications and quality control, potentially commanding premium pricing for consistently high-quality bismuth and cobalt products.
Alberta's Emerging Critical Minerals Hub
The planned NICO refinery would become part of an emerging critical minerals processing hub in Alberta's Industrial Heartland region. This area already hosts significant metallurgical operations, including Sherritt International's established nickel-cobalt refinery, which has been operating in the region for decades.
Rio Tinto currently operates a petroleum calcining operation for aluminum anodes in the area, while Umicore maintains a cobalt alloys plant within the same jurisdiction. This concentration of metallurgical expertise creates synergistic opportunities for shared infrastructure, workforce development, and technical collaboration.
Alberta's provincial government has actively supported the development of value-added processing for natural resources, offering potential incentives for projects like the NICO refinery. The province's existing petrochemical industry provides ready access to chemical reagents necessary for mineral processing, while its established transportation networks facilitate product distribution to North American markets.
This regional approach to critical minerals processing represents a significant shift in North American industrial strategy, moving away from the historical pattern of exporting raw materials for processing overseas. The trend toward digital transformation in mining may further enhance the efficiency of these operations.
What Challenges Does the Project Face?
Regulatory and Permitting Status
While the NICO Project has completed its environmental assessment in the Northwest Territories, several regulatory hurdles remain before construction can begin. Fortune Minerals still needs to secure a water license and land use permit for the mining operation. Although major mine permits have been secured, these remaining authorizations are critical path items for project advancement.
The regulatory environment for mining in Canada's northern territories involves multiple jurisdictions, including territorial, federal, and Indigenous authorities. This complex regulatory landscape can extend timelines for project development compared to jurisdictions with more streamlined processes.
For the Alberta refinery component, separate permitting processes must be navigated. However, the established industrial nature of the proposed site in Lamont County may facilitate a more efficient approval process compared to a greenfield location.
Market and Political Uncertainties
The critical minerals sector has experienced extreme price volatility in recent years, challenging project economics and investment decisions. Bismuth prices, while currently elevated, have historically shown significant fluctuations that could impact project returns.
U.S.-Canada trade tensions create additional uncertainty, despite the shared strategic interest in critical minerals. Robin Goad has expressed concerns about these dynamics: "When the Americans and Canadians get into these disputes, they shoot themselves in the foot," though he remains optimistic about eventual resolution.
Global supply chain disruptions continue to affect equipment procurement, construction timelines, and operating costs across the mining industry. For the nico project in northwest territories, these disruptions could impact both capital costs and development schedules.
Competition from other emerging producers also poses a challenge. As bismuth prices have surged, previously uneconomic resources may become viable alternatives, potentially creating future supply competition that could affect long-term pricing. These industry dynamics are reflected in recent mining and finance industry predictions for 2025.
Timeline to Production
Development Milestones
Fortune Minerals is currently advancing several parallel workstreams to bring the NICO Project closer to a construction decision. A feasibility study update is in progress, incorporating recent technological improvements and updated market conditions. This comprehensive assessment will refine capital and operating cost estimates while confirming project economics.
Concurrent front-end engineering design (FEED) work is underway, focusing on optimizing process flowsheets and equipment specifications. Metallurgical test work continues to validate process improvements that could enhance metal recoveries and reduce processing costs.
The company has targeted June 2026 for a final construction decision, assuming successful completion of these technical workstreams and favorable market conditions. This timeline reflects a deliberate approach that prioritizes technical certainty before committing to the substantial capital investment required for construction.
Reducing North American Supply Chain Vulnerabilities
The nico project in northwest territories aims to create shorter, more resilient supply chains for critical minerals in North America. By establishing domestic production and processing capacity, the project directly addresses political policy risks that currently characterize bismuth supply.
This effort parallels other initiatives in the critical minerals sector, such as Electra Battery Materials' plans for a cobalt refinery in Ontario. However, the NICO Project's multi-metal focus provides additional economic resilience compared to single-commodity developments.
The project aligns directly with both Canada's Critical Minerals Strategy and the U.S. Government's efforts to secure supply chains for strategic materials. This policy alignment enhances the project's prospects for continued government support and potential offtake agreements with public sector entities.
FAQ About the NICO Project
How does the NICO project compare to other bismuth sources globally?
The NICO project contains 12% of global bismuth reserves, making it one of the largest undeveloped bismuth resources outside China, which currently controls about 80% of global mine production. Unlike many Chinese operations where bismuth is produced as a by-product of other mining activities, NICO's deposit features bismuth as a primary product alongside cobalt, gold, and copper, allowing for optimized recovery methods. The deposit's grade of 0.14% bismuth is considered economically significant, particularly when combined with the value contribution from the other metals present.
What impact could the NICO project have on bismuth prices?
By establishing a significant non-Chinese bismuth supply source, the NICO project could help stabilize bismuth prices that have seen extreme volatility, including a six-fold increase in early 2025 following Chinese export restrictions. The project's anticipated production would represent a meaningful percentage of global supply, potentially reducing price premiums currently caused by supply chain uncertainties. However, as Robin Goad acknowledges, "Bringing on new supply will naturally influence market dynamics," suggesting that while the project aims to stabilize supply, it may also moderate prices from current elevated levels once in production.
How does the multi-metal nature of the deposit benefit the project?
According to Fortune Minerals CEO Robin Goad, "We have four metals, and the fact that we have significant gold in our asset as well provides some pretty strong mitigation of metal price volatility." This diversification creates natural hedging against market fluctuations in any single commodity. When bismuth prices decline, for instance, gold may be experiencing strength, helping maintain overall project economics. This multi-metal profile also allows for production flexibility, potentially adjusting processing parameters to favor metals with stronger market conditions. Additionally, having multiple revenue streams enhances project financing options by reducing single-commodity risk profiles that often concern lenders and investors. For those interested in the technical aspects, understanding the JORC Code and navigating mining investments and geological insights provide valuable frameworks for evaluating such projects.
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