The Department of Defense (DoD) announced today a $15.8 million award to Canadian company Fireweed Metals Corp. via the Office of the Assistant Secretary of Defense for Industrial Base Policy's Defense Production Act Purchases (DPAP) office. The objective of this award is to accelerate the development of a tungsten mine at the Mactung site in the Yukon, Canada, which is one of the world's largest undeveloped high-grade deposits of tungsten. The award will help Fireweed enhance Mactung's resource definition, perform metallurgical test work, conduct a feasibility study, and complete other activities necessary to support a construction decision.
This effort utilizes funds from the Additional Ukraine Supplemental Appropriations Act of 2022 and supports the 2024 National Defense Industrial Strategy goal of expanding support for domestic production of critical minerals. Along with the funding provided by DPAP, Canada's Department of Natural Resources is also supporting the project with a conditional approval of up to CAD $12.9 million (approximately USD $9.2 million) to Fireweed.
Announced in January 2020, the U.S.-Canadian Joint Action Plan on Critical Minerals advances both countries' common interest in strengthening North American critical mineral production needed for defense, aerospace, clean energy, communication, and other key industries. The plan outlines bilateral commitments to collaborate on industrial base investments, public-private partnerships, and other projects to onshore and expand these capabilities.
"Tungsten is used in a diverse set of DoD systems and is essential to national security," said 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. This award also highlights the importance of the Department's partnership with our Canadian allies."
Due to its unique properties, tungsten is indispensable for a range of civilian and military applications. Industrial products, such as cutting tools, drill bits, and machine wear parts are the principal drivers of global tungsten demand, but the metal is also a critical input for military-grade steel production, aerospace components, munitions, and ground vehicle armor. With this award, Fireweed will be able to accelerate Mactung's path to production and enhance its operational resilience and reliability as a producer of tungsten concentrates in North America.
"Canada is a global supplier of responsibly sourced critical minerals, which are increasingly in demand. Through our continued work with the United States, driven by the Energy Transformation Task Force and the Joint Action Plan on Critical Minerals collaboration, and other allies, we are developing secure critical minerals value chains that will bolster national and economic security in Canada and the U.S., and build a strong economic future for workers and businesses on both sides of the border," said the Honourable Jonathan Wilkinson, Canada's Minister of Energy and Natural Resources.
This is the latest of two awards made by the DPAP office, totaling $22.4 million since the beginning of Fiscal Year 2025. Using authorities under the Defense Production Act (DPA) that consider Canada a domestic source, this is also the latest of six awards made to Canadian
companies using DPA funds to execute projects based in Canada. DPAP is part of the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) Directorate within the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience.
