Now more than ever, the world wants what Canada’s minerals and metals sector offers. At Invest in Canada, we are looking to connect companies globally with the rich variety of mining investment opportunities in Canada.
A new guide – titled Spotlight on Mining: Opportunities in Canada’s Minerals and Metals Sector – reveals the full spectrum of these opportunities. It will be launched at the Canada Day session presented by Invest in Canada at the Prospectors & Developers Association of Canada (PDAC) convention on Monday, June 13.
What is the significance of 31? There are 31 materials on Canada’s critical minerals list considered essential for the security of our country and of our trading partners. Here are 31 reasons why global investors will want to choose Canada for mining investment opportunities.
Encompassing materials from aluminum to zinc, Canada’s critical minerals list reflects the importance of the availability and reliable production of key minerals and metals. What’s more, these 31 critical minerals underscore the vital nature of Canada’s supply chains that ensure essential materials get where they need to go quickly, safely and efficiently.
As a producer of many of the critical minerals and metals used in electric vehicles, renewable energy, clean technology applications and advanced manufacturing, Canada is a natural choice for investors.
For recent evidence of investments driven in part by Canada’s strength in minerals and metals, consider the recent announcement of Canada becoming home to the largest EV battery manufacturing facility in North America. LG Energy Solution of South Korea, in a joint venture with Netherlands-based Stellantis (the world’s sixth largest automaker), announced plans in March 2022 for a new EV battery manufacturing plant in Windsor, Ontario. The facility represents a total investment of over C$5 billion and the creation of 2,500 jobs.
As further testament to this strength in minerals and metals, Canada is the only country in the Western Hemisphere able to manufacture electric vehicles from start to finish.
Are global companies acknowledging Canada’s core advantages that are being built on a foundation of a thriving minerals and metals sector? In a word, yes. Germany-based BASF recently secured land for a planned battery materials facility in Bécancour, Quebec. U.S.-based General Motors, in a joint venture with South Korea-based Posco Chemical, is making a C$500 million investment to build a cathode active material (CAM) facility, also in Bécancour. Japan-based Honda announced a C$1.4 billion upgrade to its Alliston, Ontario auto manufacturing plant, while General Motors announced a C$2 billion investment at its Oshawa and Ingersoll, Ontario manufacturing plants.
In total, over 60 minerals and metals are produced from over 200 mines in Canada, as well as 50 nonferrous smelters, refineries and steel mills.
Canada is a leading destination for international mining finance. The Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSX-V) are home to 43% of the world’s public mining companies.
The 202 mining firms listed on the TSX and the 944 firms listed on the TSX-V had a combined market capitalization of C$521 billion and raised C$7.5 billion in equity capital in 2020.
Beyond greater access to capital, TSX- and TSX-V-listed firms benefit from greater visibility of transactions, analyst coverage, specialized indices and tailored listing requirements.
Canada is a global hub for junior exploration companies. In 2020, juniors spent C$1.03 billion on exploration, accounting for 71% of active projects in Canada and 80% of project operators.
Canada is one of the most mining-friendly countries in the world. In an annual survey of mining companies around the world, the Fraser Institute reported Canada ranks second in the world on its Investment Attractiveness Index. By jurisdiction, Saskatchewan ranks second globally, and Quebec and Yukon are also among the top 10 in the world in the most recent 2021 survey.
This attractiveness to investors can be attributed in part to Canada’s modern, high-quality geoscience, which is both extensive and widely used. This state-of-the-art public geoscience is a proven tool to identify prospective areas and guide private sector investments in mineral exploration.
Investors enjoy a variety of incentives and support from Canada’s federal, provincial and territorial governments, including favourable tax policies and fiscal measures to encourage activities.
Flow-through shares – a uniquely Canadian tax innovation – have generated billions for mining exploration and contributed to the development of some of the country’s most notable mines.
Canada offers easy and extensive access to global markets, including North America. Canada also has foreign investment protection agreements (FIPAs) with 35 countries and 15 free trade agreements (FTAs) with access to 51 countries. These FTAs give foreign investors preferred access to 1.5 billion consumers representing a combined GDP of US$54 trillion, almost two thirds of global GDP.
A continuing positive post-secondary enrollment trend in STEM fields like environmental science, engineering, artificial intelligence and robotics will ensure Canada’s place as a top destination for knowledge-based industries like mining.
Indigenous participation and the inclusion of Indigenous knowledge reduce investor risks by contributing to project design and providing certainty around land use and access. The minerals and metals sector is the largest private sector employer of Indigenous peoples in Canada.
For mining companies interested in the benefits of clean, renewable electricity, 82% of electricity generated in Canada produces no greenhouse gas (GHG) emissions. Hydroelectricity and other renewables contribute 67% of Canada’s electricity. Wind and solar photovoltaic (PV) energy are the fastest-growing sources of generation in Canada.
The Canadian-developed program – Towards Sustainable Mining (TSM) – was the first mining sustainability standard in the world to require site-level assessments.
Returning to critical minerals and the opportunities they present, Canada is one of the top four global producers of Platinum Group Metals (PGMs). Canada also has some of the largest known resources of rare earths in the world, estimated at over 14 million tonnes of rare earth oxides.
Canada has the potential to be a North American hub for battery-grade nickel and cobalt refining.
Projected global shortages of nickel before 2030 spell opportunities for investors: Canada already ranks among the top five in global nickel production and refined nickel production. Canada is also the second lowest-cost producer of refined nickel in the world.
Canada has some of the highest-purity hard rock deposits as sources for battery-quality lithium hydroxide. As well, subsurface brine from pre-existing energy sector operations also present potential for lithium, with projects able to take advantage of existing and abundant geological data, infrastructure and a highly trained workforce.
Canada consistently ranks in the top five in the global production of refined zinc metal (including recycled zinc) and has significant potential for new deposits.
Canada ranks among the top 10 global producers of iron ore, whose primary use is to make steel.
Canada is a leading producer and exporter of potash, which has vital agriculture and agri-food applications, and boosts crop yields.
Canada is an important global producer of conflict-free diamonds.
Canada has over 40 operating precious metal mines in nine provinces and territories, most of which are stand-alone gold mines. The majority of these operations are in areas with a long history of mining, a highly skilled local workforce, and well-established infrastructure and processing facilities.
Canada has processing plants and refineries for many minerals and metals, with clean renewable hydroelectricity and extensive transportation infrastructure to move goods downstream to North American manufacturing centres.
Given the low carbon intensity of Canada’s electricity, Canada’s production of steel alloys and products has a carbon footprint that is significantly lower than many competitors.
Canada has been an early adopter of mining automation. Examples include applications in exploration drilling, haulage, ore processing and ventilation.
That is 31 reasons to choose Canada for mining investment opportunities – and 31 reasons why you should download Spotlight on Mining: Opportunities in Canada’s Minerals and Metals Sector on Monday, June 13, 2022. Download the guide here. And see you at PDAC!
Laura.Stilwell
