How do you see the mining industry in Quebec in terms of its importance for the economy of the province?
Every two years, the Quebec Mining Association conducts an economic benefit study of the industry. We do not have the 2022 numbers yet, but the 2020 study shows the industry's significant impact – its contribution to Quebec's GDP in 2020 was $10.5 billion CAD. Moreover, for every direct job it creates, the industry generates or maintains 1.76 jobs.
The mining industry also paid $1.8 billion CAD in various taxes to the Quebec government in 2020, excluding company income taxes. Additionally, the industry supports over 4,800 suppliers across Quebec, contributing to local economies where employees live and spend their wages. Mining's higher-than-average wages significantly impact local economies, especially in key regions like Abitibi-Témiscamingue and the North Shore, contributing 35.8% and 37.5% to their local GDPs, respectively.
Which are the biggest mining sectors in Quebec as of today?
Gold and iron ore are the most significant sectors, with iron ore mines primarily located on the North Shore of Quebec. Iron ore generates more revenue for the government than gold, even though there are fewer iron ore mines compared to gold mines. The iron ore mines are much larger, thus contributing more in terms of mining taxes and overall revenue. These two sectors are crucial for Quebec's mining industry.
Could you tell us more about Quebec's projects exploring lithium?
At the moment, Quebec has six advanced lithium projects, with more deposits under exploration. We have one operational lithium mine, which has been intermittently active. Sayona Mining Quebec owns this mine and is also developing other projects in Northern Quebec, including processing plants to produce lithium carbonate and eventually lithium hydroxide.
The most advanced projects are by Sayona and Nemaska Lithium. Nemaska Lithium faced financing problems but is now building both the mine and processing plant. They are expected to be in production by 2026, leading the way in Quebec's lithium production.
Could you tell us a little bit about Quebec's future on the map of rare earths mining?
While Quebec has discovered rare earth deposits and has early-stage projects, it might take several years before these projects become operational. Currently, there are two active projects working towards developing rare earth mining, but they are not yet in the permitting process. Significant R&D efforts are underway for processing rare earths. The timeline for these projects to reach operational status might extend beyond the typical "few years" timeframe.
Do you see Quebec as a leader in responsible mining?
Yes, Quebec is well-positioned due to our stringent environmental and social practices, which ensure responsible mining and sourcing. Our regulations are now seen as beneficial for positioning Quebec as a leader in responsible mining. Companies in Quebec must adhere to the Towards Sustainable Mining standard, an ESG framework that ensures high standards in environmental protection and community relations. This requirement helps ensure that Quebec mining companies are leaders in sustainability.
Quebec's rich resources, including lithium, graphite, and nickel, are crucial for the battery value chain. We have several advanced lithium projects and one operational graphite mine, with more on the way. Our nickel production is also ramping up, driven by better market prices and the demand for battery-grade nickel. Moreover, Quebec's use of hydroelectric power reduces greenhouse gas emissions, making our mining operations more environmentally friendly. There are ongoing efforts to integrate renewable energy technologies into the mining sector, further strengthening Quebec's position as a key player in the green transition.
Could you tell us more about Quebec's hydroelectric power and its impact on the mining industry?
Quebec's abundant hydroelectric power is a significant advantage, providing a clean energy source for mining operations. However, the grid is becoming saturated, leading to prioritization of projects that can access this power. The government is currently drafting a new energy bill to address these issues, which could delay some projects.
Despite these challenges, the government is promoting Quebec for the battery value chain and critical minerals. This prioritization helps ensure that mining projects vital for the green transition receive the necessary support and resources.
What is the quality of iron ore in Quebec? What are its environmental benefits?
Quebec produces high-grade, high-purity iron ore, which can significantly reduce greenhouse gas emissions when used in steel production. New technologies using Quebec's iron ore can help steel producers cut emissions by up to 85%. Given that the steel industry is a major contributor to global greenhouse gas emissions, this is a crucial advantage.
Highlighting Quebec's iron ore quality emphasizes our potential to contribute to global emission reduction efforts. This positions Quebec not only as a resource-rich region but also as a leader in sustainable mining practices that benefit the environment.
How does the Quebec Mining Association work with indigenous communities?
The Quebec Mining Association provides guidelines for member companies on how to engage with local and indigenous communities. The mining industry is a major employer of indigenous people, especially in northern Quebec. Companies hire, train, and offer contracts to indigenous individuals, ensuring they benefit from mining activities.
While the association itself does not work directly with communities, individual mining sites maintain close relationships with local populations. This engagement helps protect the interests of indigenous communities and ensures they share in the economic benefits of mining.
How are local governmental initiatives supporting the future of Quebec’s mining industry?
In October 2020, Quebec was among the first jurisdictions to develop a plan for critical and strategic minerals. The government promotes Quebec's potential in these minerals, attracting interest and investment. Strategies include developing the battery value chain and ensuring processing capabilities within Quebec. This government support has led to increased exploration and investment in mining projects. Currently, there are 36 projects under the government's radar, in addition to the 20 operational mines.
In a few words, what makes you optimistic about the future of mineral development in Quebec?
Quebec has rich deposits of critical minerals like copper, lithium, graphite, nickel, and high-grade iron ore. The region's mining ecosystem, including expertise, research centers, and engineering schools, supports sustainable and efficient mining practices. The government's promotion of Quebec as a prime mining jurisdiction has increased exploration and investment.
With 36 projects in the pipeline and a strong focus on sustainable practices and renewable energy integration, Quebec is well-prepared to meet future demand for critical minerals. This optimism is rooted in the province's resources, expertise, and commitment to responsible mining.
