You are striving to develop the first-ever carbon-neutral copper mine; what is your progress thus far?
In Late July we announced a significant de-risking milestone in our journey: we received the Environmental Assessment (EA) Approval for McIlvenna Bay. This in itself shall be a milestone for Foran, one of the most significant barriers to entry in mining is the permitting process, and we are looking forward to seeing the project flourish. Equally important is our presence in a jurisdiction where the rule of law is respected. This is key in mining, ensuring that the investments made today are secure and won't be arbitrarily undermined in the future. Operating within Saskatchewan offers additional assurance to all stakeholders, and we believe completing the EA process in a world class jurisdiction will lower the discount rate applied by the market on our future cashflows, enhancing the intrinsic value of McIlvenna Bay.
In Canada, an impact and benefits agreement with local First Nations is required to develop a mining project. Nevertheless, we chose to go down a different route and target the signing of a collaboration agreement: concentrating on earning trust of the local indigenous communities- that’s the first step to successfully work together.
As such, we built this project - and the company – with the goal to collaborate and build an intergenerational sustainable mining practice inclusive of circular economies. We also employ a consultation process through which we try to understand the issues the communities face, and offer financial contributions, including equity ownership in the company. Education and business opportunities support is also part of the mix, and, in the end, all of these aggregated elements link to sustainability in mining. It is important to understand that a business cannot thrive in the absence of strong community relationships. Similarly, a high safety profile leads to a better track record and a more productive mine.
What factors did you consider when taking the decision to develop the McIlvenna Bay Project?
McIlvenna Bay is a volcanogenic massive sulphide (VMS) deposit. VMS deposits are known to potentially extend for multi-decades (some 60+ years) with the added benefit of being high-grade and low-cost to construct and mine. Consequently, the untouched district in neighboring Saskatchewan sparked our interest, given that there has been mining copper across the border in Manitoba for the last hundred years. After all, borders are man-made, mineralization is not.
From very early on, our strategy is to target carbon neutral production. This endeavor is possible since 2/3 of mining emissions are from power generation, and at McIlvenna Bay we can use hydroelectric power.
In addition, we plan to use electric trucks as the high-grade polymetallic mineralization is close to the surface. We will be using electric vehicles and reducing emissions and improving efficiencies, with the benefits from long-term green infrastructure compounding over time. Besides all these sustainability measures, we are also utilizing waste heat from the gas recovery system via vents and water recycling in our processing facility.
Given the rapidly increasing demand for copper and other materials necessary for the electrification of the automotive space, do you believe that we are on the brink of an imminent supply crisis?
Truthfully, nobody has got any idea what to expect, and if we put the cart before the horse, we may well run into trouble. The infrastructure is not yet in place for global decarbonization, and if all of us in North America were to buy Evs today – tonight when we charged them, the grid would collapse under that extra load. Recent weather events in Texas have made a clear example of how fragile the electric infrastructure really is. There is no doubt that we need Evs to decarbonize the planet, but more eminently than Evs, we need trillions of dollars invested into infrastructure (and upstream copper projects) so that we can expand and connect the grid properly. While the political side is funding downstream, it is the upstream projects that needs the most investment if we are to have sufficient materials with which to sustain the green transition.
What part can the mining industry best play in the green transition?
Particularly in mining, which is a very challenging industry, we need to remain optimistic. We need to look through this storm - where everything seems impossible - and towards realistic decarbonization goals of the future. Action needs to be taken now - and not just in five years' time. And that must begin with mining, because that’s where everything we build begins from too.
Otherwise, we are only pushing the date back. We can all be carbon neutral at some point down the path, but we can’t leave it too late - and legislators are finally realizing. Mining companies need support both from a regulatory and a capital perspective, because without these, capital-intensive projects cannot come to fruition. We have a big task ahead of us, and the only way we can achieve this is if we work together.
