TSX- and NYSE-listed Teck Resources, Natural Resources Canada and Canada Growth Fund (CGF) have signed a strategic investment agreement to support expanding production capacity for germanium, gallium and antimony at Teck's Trail Operations, which is a smelting and refining complex in British Columbia.

In fact, Trail is one of the world's largest fully integrated polymetallic smelting and refining complexes, producing 19 different products.

The agreement establishes the commercial framework for an equity-like investment by CGF of up to $400-million directly into the facility, as part of an up to $850-million potential total investment by Teck to sustain and enhance critical minerals processing capacity at Trail from a portfolio of feed sources.

The agreement also provides for the establishment of an offtake structure with the government of Canada, including offtake rights for a portion of future germanium, antimony and gallium production.

Teck says such an investment by CGF could potentially double the existing production capacity for germanium and antimony at Trail, while introducing new gallium production capacity.

Germanium, antimony and gallium are essential inputs for a range of advanced technologies and national security applications. Germanium is used in fibre-optic systems, infrared optics and semiconductor technologies, while antimony is critical for flake retardants, batteries and alloys. Gallium, in turn, is a key material in high-performance semiconductors used in telecommunications, radar systems and next-generation electronics.

The province of British Columbia has also named the Trail project as one of 18 priority resource projects and is working with Teck on opportunities to further support its advancement.

Canada is moving quickly to unlock critical minerals that will strengthen its economy and security, enhance global supply chains and grow Canadian industries.

CGF is a $15-billion arm’s-length investment vehicle designed to attract private capital to build Canada’s clean economy. It uses investment instruments that absorb certain risks to catalyse private investment in low-carbon projects, technologies, businesses, and supply chains.