The Department of Defense (DoD) has announced a $15.8 million award to Fireweed Metals Corp., a Canadian company, through the Office of the Assistant Secretary of Defense for Industrial Base Policy's Defense Production Act Purchases (DPAP) office. This funding aims to accelerate the development of a tungsten mine at the Mactung site in Yukon, Canada, known as one of the largest undeveloped high-grade tungsten deposits globally. The investment will assist Fireweed in enhancing resource definition, conducting metallurgical tests, performing feasibility studies, and completing other activities necessary for a construction decision.
This initiative uses funds from the Additional Ukraine Supplemental Appropriations Act of 2022 and aligns with the 2024 National Defense Industrial Strategy goal to boost domestic production of critical minerals. In addition to DPAP's support, Canada's Department of Natural Resources has conditionally approved up to CAD $12.9 million (approximately USD $9.2 million) for Fireweed.
The U.S.-Canadian Joint Action Plan on Critical Minerals was announced in January 2020 to strengthen North American critical mineral production essential for defense, aerospace, clean energy, communication, and other industries. The plan emphasizes bilateral commitments to collaborate on industrial base investments and public-private partnerships.
"Tungsten is used in a diverse set of DoD systems and is essential to national security," stated Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "The United States is overly reliant on overseas sources of tungsten and a secure North American supply for this commodity will mitigate one of our most critical material risks."
Tungsten's unique properties make it indispensable for various civilian and military applications such as cutting tools, drill bits, machine wear parts, military-grade steel production, aerospace components, munitions, and ground vehicle armor. With this award, Fireweed can expedite Mactung's path to production and enhance its operational resilience as a producer of tungsten concentrates in North America.
"Canada is a global supplier of responsibly sourced critical minerals," said Jonathan Wilkinson, Canada's Minister of Energy and Natural Resources. "Through our continued work with the United States... we are developing secure critical minerals value chains that will bolster national and economic security in Canada and the U.S."
This award is part of two awards made by DPAP totaling $22.4 million since Fiscal Year 2025 began using authorities under the Defense Production Act (DPA), which considers Canada a domestic source.
For more information on MCEIP: https://www.businessdefense.gov/ibr/mceip/index.html
About OASD(IBP): Works with partners domestically and internationally to maintain a robust industrial base enabling warfighters now and in future endeavors.
To learn more about DIBC OTA: https://www.dibconsortium.org
