KAP Minerals Inc. has signed a memorandum of understanding with Hanwa Co., one of Japan’s leading global trading and industrial materials companies.
The goal is to develop a “strategic partnership focused on offtake supply and the development of downstream critical minerals supply chains between Canada and Japan.”
“The agreement establishes a framework for negotiating long-term offtake and commercial collaboration,” said a May 13 news release from the two companies.
“In the first phase, Hanwa would purchase and distribute phosphate and rare earth element concentrate production from KAP’s northern Ontario project.”
The second phase would see the companies work together to establish “processing capacity in Ontario, including the production and distribution of purified phosphoric acid and the additional supply of phosphate and rare earth concentrates.”
New supply chain
The goal would be to meet the growing global demand for materials needed for “defence, lithium-ion batteries, robotics, advanced electronics and aerospace manufacturing, sectors where supply chains are currently heavily concentrated in a few jurisdictions.”
“The partnership also reflects the deepening strategic cooperation between Canada and Japan on critical minerals security, an issue central to the industrial policies of G7 economies amid rising geopolitical competition and supply chain vulnerabilities,” the release said.
“The KAP project is designed to redevelop the historic Agrium phosphate mine and tailings complex near Kapuskasing into a multi-product critical minerals platform.”
Initial production estimates are set at 70,000-100,000 tonnes of phosphate, ramping up to 450,000 tonnes per year of high-grade phosphate concentrate alongside rare earth concentrates and other critical minerals used in defence and advanced manufacturing supply chains.
“Through the agreement, Hanwa will leverage its extensive global distribution network and long-standing relationships with battery manufacturers, automotive companies, magnet producers, and advanced materials firms across the world to develop downstream supply chains for the project’s products,” the companies said.
Canada-Japan critical minerals partnership
“This partnership with Hanwa represents a major step forward in establishing the Kapuskasing project as a cornerstone of the Canada-Japan critical minerals relationship,” KAP Minerals CEP Geoff Hampson said in the release.
“Japan is a global leader in advanced manufacturing and battery technology, and Hanwa brings a deep network of industrial relationships across the world. Together we are building a supply chain that connects northern Ontario’s resources with the industries shaping the future of energy, defence, mobility and advanced technology.”
“Hanwa is committed to developing reliable and sustainable supply chains for critical materials essential to the global energy transition and advanced manufacturing,” added Mr. Shoji Shirasawa, managing executive officer, Hanwa Co., Ltd.
“Our partnership with KAP Minerals creates an opportunity to connect Japan’s industrial demand with a secure, allied source of phosphate and rare earth materials from Canada. We look forward to working closely with KAP and building our downstream consortium together for a resilient supply chain that benefits both countries.”
The Kapuskasing project will use a brownfield mining site with existing infrastructure and a stockpile of previously mined material, enabling accelerated timelines to production relative to conventional greenfield mining developments.
“As global demand for critical minerals accelerates, the KAP–Hanwa collaboration highlights the growing importance of Canada-Japan industrial cooperation in securing the materials required for next-generation technologies, reinforcing shared commitments made by G7 partners to build diversified, reliable, and sustainable supply chains,” the release said.
