Why is the Canadian mining industry leading over other geographies in the West?
Canada has a vast geography endowed with numerous mineral reserves and resources, and this puts us in the privileged spot where we can mine the commodities needed for the future energy transition. We have always been known as a mining nation, and the Toronto Stock Exchange is the epicenter of mining investment in the world. Besides these innate characteristics, incentives like the Mineral Exploration Tax Credit (METC) are openly encouraging companies to come and take root here. Furthermore, we are looking to turn the page in this particular chapter by not just extracting raw materials, but by also processing them locally. The good local resources, the right investment climate, and the robust regulatory frameworks that provide certainty are the key assets that make investors comfortable with choosing Canada as their mining destination.
Globally, exploration seems to be hindered by a lack of consistent investment. How do you perceive this paradigm in Canada?
Canada has a very robust junior mining regime, with the TSXV being especially directed to junior companies. When you combine these with the flowthrough share regime, the 15% Mineral Exploration Tax Credit and the newly announced 30% Critical Mineral Exploration Tax Credit, the Canadian environment turns out to be extremely supportive for exploration companies.
There seems to be more focus on EVs than in mining, even though minerals underpin the whole EV market. When it comes to Canada, is the policy more balanced in this sense?
EVs are the leading edge towards the green transition, and automotive suppliers look at Canada as a destination of choice, in part, because of our rich resources. Consequently, they are interested in pushing the envelope for the mining industry because their batteries and EVs cannot materialize without essential materials like copper, graphite or nickel.
Through the critical minerals strategy launched in December 2022, we focus on six major areas of interest. The research, innovation and exploration program is a first step towards more efficient and environmentally friendly business processes, and building sustainable infrastructure is a key way to get the mining resources out of remote locations and into the centers that need them.
Given that most - if not all – of our mineral deposits are in Indigenous territories, advancing reconciliation and creating long-lasting partnerships with First Nations is among our top priorities. By the same token, we are aware that the mining industry has been historically white-male-dominated, so industry together with the government are looking at ways to diversify the workforce. Finally, the goal that underpins all these plans is strengthening global leadership and security, and encouraging and supporting the adoption of environmental, social and governance (ESG) principles and standards into other countries’ mining practices. Luckily, Canada has a processing base that can be further expanded as needed. To assist with this we are dedicating resources through the Strategic Innovation Fund to focus on processing and the midstream to downstream connection, in recognition of this industry gap that needs focused attention.
Many industries are worried they are not finding the right talent for this highly technological era. How does this hurdle reflect in the mining sector in Canada?
Canada has a richness of talent, and we have programs dedicated to working in the natural resources field. However, as it starts to grow, the mining industry is experiencing workforce shortages, mainly from the ranks of young people who, in their concern for the environment, do not see mining as an aiding tool but as a destructive element. To address these misconceptions, Canada, in conjunction with other countries, launched the Critical Minerals Sustainable Alliance, with the goal of preventing biodiversity loss and ensuring remediation to natural state. Strictly in regard to talent shortages, Natural Resources Canada has frequent conversations with other federal departments responsible for labour programs meant to incent the development of curricula as well as special training programs. In addition, our federal immigration department plays a key role by opening the door to allow skilled workers into Canada who can be deployed into high-paying mining sector jobs. Historically mining has been identified as a dirty industry, but it is evolving rapidly through automation and safety protocols. While much of this is not widely known outside the mining sector, Canada is leading efforts on sustainable mining practices and is also leading the effort in communicating this to both domestic and global audiences.
What would be some of the main objectives NRCan aims to achieve in the coming few years?
First and foremost, we plan to invest in solid infrastructure, then we aim to continue to focus on the social component of ESG, and, finally, we will continue to support robust environmental assessments and regulations, but we will also make sure they do not get in the way of development. As we look at the challenges that are before us, and where we need to go as a planet, we need to be able to ensure that we leave the world in better shape for our children. To achieve this, ensuring a continued supply of critical minerals while maintaining a leadership role in environmentally conscious extraction is an intricate part of that puzzle, and as public servants it is our duty to continuously strive to improve the wellbeing of our society.
