What role does PDAC play in the wider mining sector?
The Prospectors and Developers Association of Canada (PDAC) represents over 7,000 individual and corporate members both in Canada and around the world, and its work centers on supporting a competitive, responsible, and sustainable mineral industry. The organization is best known for hosting the World’s Premier Mineral Exploration and Mining Convention in Toronto each March. The event attracts up to 30,000 industry professionals, investors and students from more than 130 countries for the trade show, educational programming, networking events and business opportunities. The knowledge exchange at Convention generates an incredible amount of innovation and collaboration.
PDAC is more than an organization that holds an iconic Convention every year. Outside the Convention, PDAC contributes to the growth and development of the mining industry. We provide support and insights to our members. For instance, we recently published a study on the economic and social impacts of mineral exploration on Indigenous communities. Two of the projects we’re working on now are an online greenhouse gas calculator, and a method to accurately assess land disturbance caused by mineral exploration and mining.
PDAC is a big advocate, of industry, to governments. In 2022, we were encouraged to see the attainment of a significant advocacy goal when the federal government implemented its Critical Mineral Exploration Tax Credit. This Tax Credit complements a product of our previous advocacy: The Mineral Exploration Tax Credit. Both of these tax credits are vital in ensuring Canada’s position as a global leader for mineral exploration and mine finance.
Is the market, and the society at large, aware of the incoming increase of demand for raw materials?
Increasing demand and potential shortages? To some degree, yes. Lithium markets are proof that markets are still trying to figure out how global decarbonization and electrification will factor into mineral and commodity markets. Three years ago, the long-term outlook pushed prices higher and higher. This prompted some new production to come on line, which seems to have satisfied short-term needs, so lithium prices dropped significantly in 2023.
Canada has considered copper a critical mineral since inception of our national list, while it wasn’t until August 2023 that the U.S. added copper to its own list. It seems that the U.S. is shifting towards a longer-term focus.
Now, a gasoline-powered car may need only 18 pounds of copper, whereas an EV could need ten times that amount. Not only does switching to EVs result in a massive increase in demand for the vehicles themselves, copper analysts are now beginning to realize that EVs will require huge increases in charging stations and power grids.
Those charging stations and power grids require massive amounts of copper. Already, in the UK, Spain or Italy, for example, more than 150GW of wind and solar projects are not being built because there is no grid to plug them into.
We definitely need industry to keep in mind that we may fall short in sourcing key electric materials, like copper. We must also work on creating a bridge with the hearts and minds of the public, who must recognize the important and inextricable links between minerals and their everyday lives. At every opportunity, PDAC brings these two themes to the forefront. To provide the minerals needed for the green transition and beyond, we need to identify new mines, to offer access to capital to small companies, and to attract and develop a skilled and diverse workforce.
What are some of the concrete measures that have been taken to address these challenges?
That Canadian Critical Mineral Exploration Tax Credit, which was championed by PDAC and launched in 2022, seems to be making an impact: the exploration for lithium, cobalt and rare earths has increased nearly nine fold in 2023 when compared to 2020. The Canadian government has committed a combined CAD $3 billion for critical mineral supply chain infrastructure and a refundable tax credit that applies to certain new critical mineral extraction and processing equipment. We are keen to see those funds begin to roll out soon.
We do have open lines of communication with policy-makers, and we also support innovations in introducing students to this field. Geology is a fascinating and exciting science. As we convey the message about the rewarding career opportunities in the mineral industry, we aim to attract younger generations to this sector.
Now, the Government of Canada’s long-standing Mineral Exploration Tax Credit, which applies to all minerals, including precious metals, expires in March of 2024. We are working to see that it is renewed. We are also calling for more investment into public geoscience modelling because we will need to make speedy and informed decisions on how to balance development with conservation.
When it comes to new technologies in the mining sector, what role does AI, machine learning or VR play in everyday operations?
The mineral industry is a leader in the applications of new technologies. Mine operators have already begun to implement AI and Machine Learning (ML) in areas such as distinguishing between ore and waste, operating trucks or processing. PDAC is working to support the development of a practice guide for data analytics and mineral exploration, given the extraordinary potential AI/ML has in identifying exploration targets that host undiscovered orebodies. Although artificial intelligence will not supplant exploration geologists, it is becoming an amazing tool for their toolboxes.
Inspired by aircraft simulators, Virtual Reality (VR) can have great applicability in mine training and daily operations, especially from a health and safety perspective.
So: new technologies are making our industry smarter, safer and more effective.
What are you passionate about in the mining industry?
My passion is captured in the first word of the name of our organization. I identify myself as an eager prospector, motivated to help find as many mines as possible. I am also proud to contribute to PDAC and its work in supporting a competitive, responsible, and sustainable mineral industry. PDAC is committed to helping ensure our sector can access the people, lands and capital needed to close gaps in our domestic supply chains, to inform and guide Canada’s climate action strategies and to continue to generate significant economic and social benefits from coast to coast to coast. This work will be on showcase at PDAC 2024, the World’s Premier Mineral Exploration and Mining Convention. I, and other members of PDAC look forward to welcoming the global mining industry, and investors attracted by the promise of critical minerals, on March 3-6, 2024 in Toronto.
