Canada Growth Fund commits US$85m to revive Vale Base Metals Thompson Mine Complex in Thompson Manitoba

There was a quiet but significant announcement out of Ottawa this week, and if you care about jobs in Northern Manitoba or the future of electric vehicles, it matters more than it might first appear.

On February 19, 2026, Finance Minister François-Philippe Champagne confirmed that the Canada Growth Fund plans to invest up to US$85 million — roughly C$116 million — into a broader deal aimed at reviving and stabilizing the Vale Base Metals Thompson Mine Complex in Manitoba.

It’s not a solo move. The Canada Growth Fund’s contribution would be part of a US$200 million recapitalization effort alongside Vale Base Metals, Exiro Minerals Corp and Orion Resource Partners. The transaction is expected to close before the end of 2026, assuming regulatory and government approvals go through.

In plain terms, Ottawa is stepping in to help secure the future of one of Canada’s key nickel-producing operations.

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Why Thompson Matters More Than Ever

The Thompson Mine Complex isn’t just another industrial site. Located in northern Manitoba, it includes two operating underground mines, a nearby mill, and significant exploration potential that could extend its life for years.

Nickel from Thompson doesn’t just disappear into global commodity markets — it feeds directly into supply chains that power electric vehicle batteries and renewable energy systems. Nickel is officially designated as a critical mineral by the federal government because it plays a major role in lithium-ion battery chemistry, especially in high-energy-density EV batteries used by automakers worldwide.

As global electrification accelerates and governments push toward net-zero targets, demand for nickel has surged. Countries like the United States and members of the European Union are actively looking to secure supply chains that are stable, transparent and geopolitically reliable. Canada sits in a strong position here — if it can keep key assets operating.

That’s where this deal becomes strategic.

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The Canada Growth Fund Steps In

The Canada Growth Fund was created to back projects that strengthen Canada’s long-term economic and environmental competitiveness. Its participation in this transaction signals that the government sees Thompson not just as a mine, but as part of the backbone of Canada’s clean energy ambitions.

By committing up to US$85 million, the fund is helping stabilize the operation while private partners bring in the rest of the capital required. The combined US$200 million package is meant to acquire and turn around the Thompson complex — ensuring it remains operational, competitive and capable of modernizing.

Mining turnarounds are rarely simple. They often involve operational upgrades, cost restructuring, exploration spending and market repositioning. Government-backed investment can provide confidence to lenders and partners who might otherwise hesitate.

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Jobs, Supply Chains and Regional Impact

For the community around Thompson, this is about more than commodity prices. Mining jobs in northern regions are typically high-paying, skilled positions that support families, local businesses and municipal revenues.

Nickel operations in Manitoba have long been a cornerstone of the regional economy. Keeping the mine active helps protect not just direct mining employment but also contractors, equipment suppliers, transportation providers and service businesses.

At a national level, the deal strengthens Canada’s critical mineral supply chain. Ottawa has repeatedly emphasized the importance of building domestic capacity — from extraction to processing — so that Canadian resources support Canadian manufacturing and allied partners rather than being fully processed offshore.

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Nickel’s Role in the Clean Energy Race

Nickel’s importance has grown dramatically over the last decade. Modern EV batteries, particularly nickel-manganese-cobalt chemistries, rely on high-purity nickel to boost energy density and extend vehicle range.

Countries that control or secure nickel supply are better positioned in the global EV market. Indonesia has surged ahead in raw production, but Canada’s advantage lies in political stability, environmental standards and responsible sourcing — factors increasingly important to automakers and investors.

Canada’s Critical Minerals Strategy, launched in recent years, specifically identifies nickel as essential to building a low-carbon economy. Investments like this one align with broader federal efforts to make Canada a reliable global supplier of responsibly sourced materials.

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A Broader Push Toward Economic Resilience

This investment also reflects a wider policy trend. Western governments are increasingly wary of overreliance on a handful of foreign suppliers for key materials. The pandemic, geopolitical tensions and supply chain disruptions exposed vulnerabilities.

By backing domestic production, Canada is not only supporting economic growth but also reinforcing resilience against global shocks.

The Thompson complex has known reserves and exploration upside. Continued investment could extend its lifespan, enhance productivity and potentially unlock additional deposits.

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What’s Next?

The transaction is expected to close by the end of 2026, pending regulatory and government approvals. Over the coming months, partners will finalize acquisition details, financing structures and operational plans.

If approved, attention will likely turn to modernization efforts, production targets and long-term exploration strategy. Market conditions for nickel will also play a role, especially as EV adoption continues to expand globally.

Industry watchers will be paying close attention to how quickly the turnaround gains traction and whether production volumes increase under the new structure.

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Summary

On February 19, 2026, in Ottawa, the Department of Finance Canada announced that the Canada Growth Fund intends to invest up to US$85 million as part of a US$200 million effort to acquire and revitalize the Vale Base Metals Thompson Mine Complex in Manitoba. The operation includes two underground mines and a mill, with strong exploration potential.

The move aims to secure Canada’s nickel supply chain, protect skilled jobs and reinforce the country’s role as a global supplier of critical minerals essential for electric vehicles and clean energy technologies. The deal is expected to close by the end of 2026, subject to approvals, marking another step in Canada’s strategy to strengthen its economic resilience and net-zero ambitions.