Canada funds AI mining innovation projects
Critical minerals extraction funding will support Novamera’s precision mining and Koonkie’s restoration platform.
Canada has announced CAD 6.7 million in federal funding for two AI-enabled mining innovation projects aimed at improving critical minerals extraction and ecological restoration.
The two projects, worth a combined CAD 19.8 million, are led by Novamera Inc. of Oakville, Ontario, and Koonkie Canada Inc. of Vancouver, British Columbia. Funding is being provided through Canada’s Digital Technology Cluster (DIGITAL).
Novamera will receive CAD 3.8 million for a CAD 10.9 million project to advance its Surgical Mining technology, which combines subsurface imaging, AI, robotics and conventional drilling equipment to access mineral deposits with greater precision.
The technology is designed to enable more targeted extraction of critical minerals, including copper and rare earth elements. According to the government, the project will help move the technology from development towards commercial deployment.
Koonkie will receive CAD 2.9 million for a CAD 8.9 million project to develop an AI-powered mine restoration platform. The system will combine environmental DNA analysis, soil health data, remote sensing and Indigenous ecological knowledge to monitor biodiversity and ecological recovery.
Project partners estimate the platform could shorten ecological restoration timelines by five to ten years while reducing restoration costs by up to 40% compared with conventional approaches.
The projects are expected to create up to 35 jobs and maintain a further 37. The government said the investments support Canada’s broader strategy to strengthen critical mineral supply chains, advance clean technologies and improve industrial competitiveness.
Industry Minister Mélanie Joly said the investments would help Canadian companies develop and deploy technologies that improve the precision of critical minerals extraction, support responsible resource development and strengthen mine restoration.
Why does it matter?
Critical minerals such as copper and rare earth elements are essential for AI infrastructure, semiconductors, batteries and clean energy technologies, making mining innovation an increasingly important part of national industrial strategies. AI is also expanding beyond mineral exploration into operational efficiency and environmental management, helping companies improve resource recovery while reducing environmental impacts.
The projects illustrate how governments are using AI to strengthen both the competitiveness and sustainability of critical mineral supply chains. By combining automation, environmental monitoring and Indigenous knowledge, Canada is positioning digital technologies as a key component of responsible resource development.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!