CALGARY — A major Saskatchewan copper-zinc mine has begun producing mineral concentrates after receiving commitments totalling up to $217 million from the federal government and the federally backed Canada Growth Fund.The McIlvenna Bay mine, located in Saskatchewan’s mineral-rich Flin Flon Greenstone Belt, produced its first copper concentrate in June, followed by zinc and pyrite concentrates in July. Eldorado Gold expects the operation to reach commercial production during the third quarter of 2026.Ottawa referred McIlvenna Bay to its Major Projects Office in September 2025, identifying it as a project of national interest because of its potential contribution to Canadian and allied critical-mineral supply chains.The mine has since been connected to SaskPower’s electrical grid through a new 85-kilometre transmission line and substation. More than 400,000 tonnes of material has also been stockpiled for processing as the company ramps up operations.Eldorado is considering increasing the mine’s processing capacity from 4,900 tonnes per day to approximately 7,000 tonnes. The company is also studying the addition of a silver-lead processing circuit that could allow it to recover more minerals from the site.Approximately 14,000 metres of exploration drilling is planned in 2026 to assess the potential for additional mining in the surrounding area..Canada spends $41 million on ‘carbon-neutral’ Saskatchewan mine.“The progress achieved at McIlvenna Bay is a clear example of what Canada can accomplish when governments, indigenous partners, workers and industry work together,” Energy and Natural Resources Minister Tim Hodgson said.Hodgson said the new source of copper and zinc would strengthen Canada’s economy and national security while creating opportunities in Saskatchewan and elsewhere in the country.The federal government has provided substantial financial support for the development.Natural Resources Canada announced up to $20 million in December 2024 for the mine’s transmission connection, electrical substation and electric-vehicle charging infrastructure.Innovation, Science and Economic Development Canada committed another $41 million through the Strategic Innovation Fund in January 2025 to introduce lower-emission technologies at the site.The Canada Growth Fund agreed in May 2025 to commit approximately $156 million alongside other parties supporting the mine’s development and construction.The three commitments amount to as much as $217 million in federal and federally backed spending.McIlvenna Bay is expected to produce between five million and 10 million pounds of copper in 2026, along with between 3,000 and 6,000 tonnes of zinc, 5,000 and 10,000 ounces of gold and 100,000 and 200,000 ounces of silver..Carney, Eby strike major projects deal to fast-track LNG, mining and trade infrastructure in BC .A March 2025 feasibility study projected that the mine would operate for at least 18 years. Average annual production over its lifespan is expected to reach 41 million pounds of copper, 54 million pounds of zinc, 20,000 ounces of gold and 444,000 ounces of silver.The operation currently employs approximately 380 full-time workers. Employment is expected to increase to about 450 positions after commercial production is reached. Approximately 34% of the existing workforce is indigenous.Rural Development Secretary of State Buckley Belanger said the development would create employment and economic opportunities for rural and northern Saskatchewan.“This project demonstrates how responsible resource development and strong indigenous partnerships can build a more resilient economy while maximizing on-the-ground benefits for local Saskatchewan communities,” Belanger said.Eldorado Gold president Christian Milau called the beginning of production an important milestone for the company, its workers and surrounding communities.“With first production achieved, a study underway to evaluate a potential mill expansion and the addition of a silver-lead circuit, and significant district-scale exploration potential, we look forward to continuing to work with governments and indigenous partners to unlock McIlvenna Bay’s full potential for Canada,” Milau said.Copper from the mine is expected to be smelted in Quebec. The metal is used in electrical grids, vehicles, batteries, renewable-energy systems and military and advanced-manufacturing applications.Zinc is primarily used to galvanize steel and protect buildings, bridges, vehicles and other infrastructure from corrosion. Approximately 60% of global zinc consumption is associated with galvanization.Canada’s minerals sector directly and indirectly supported approximately 721,000 jobs in 2025 and contributed $157 billion, or 5%, of the country’s nominal gross domestic product.
