FedNor funding targets new underground shop space in Sudbury and real-time analytics tech for safer operations

SUDBURY, ON — The federal government is investing $1.56 million to support two mining-sector initiatives in Northern Ontario: an expansion at NORCAT’s Underground Centre and the continued development of LoopX’s generative AI-powered analytics system.

The funding was announced Thursday, February 19, 2026, by Sudbury MP Viviane Lapointe on behalf of Patty Hajdu, the Minister of Jobs and Families and Minister responsible for FedNor—and the Member of Parliament for Thunder Bay—Superior North.

NORCAT to complete Phase III of Underground Centre expansion

FedNor says NORCAT will receive $1,080,000 through the Regional Economic Growth Through Innovation (REGI)program to complete Phase III of its Underground Centre expansion.

According to the federal release, the final phase includes 550 square metres of new space featuring shop and mechanic facilities, equipment and tools, plus offices, meeting rooms, and learning spaces. It builds on a recently completed 1,100-square-metre facility in Onaping Falls.

FedNor expects the project to create more than 15 new jobs and increase NORCAT’s capacity to support more than 25 technology clients per year, while helping 10+ mining-technology businesses be created, expanded, or modernized.

LoopX receives $480K to push generative AI analytics toward market

LoopX will receive $480,000 to advance the development and commercialization of a generative AI-powered analytics system intended to improve real-time decision-making and operational awareness for mining operations, including underground settings.

FedNor said the funding will also support hiring, specialized equipment and supplies, and intellectual property protection as the technology moves closer to market readiness.

Why it matters in Northwestern Ontario

While the announcement was made in Sudbury, the potential ripple effects extend across Northern Ontario’s mining supply chain—including Northwestern Ontario, where mine operators, contractors, and service firms increasingly rely on automation, sensors, and data-driven planning.

With Hajdu serving as both FedNor’s responsible minister and the MP for Thunder Bay—Superior North, the announcement also underscores how Ottawa is positioning Northern Ontario’s innovation ecosystem—testing facilities, commercialization supports, and AI adoption—to benefit communities beyond the Sudbury basin.

Funding streams behind the announcement

FedNor says the investments flow through:

• REGI, which supports business growth, market expansion, and adoption of new technologies;

• The Regional Artificial Intelligence Initiative (RAII) for Northern Ontario, aimed at helping bridge AI research and market adoption for regional firms.