7 minute read
Bertrand Raoult (Canada Trade Commissioner Service)
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Like Australia, Canada is a global mining Leader. The country hosts a diverse and rich endowment of mineral resources, a favourable tax regime for the mining sector, and public support to encourage exploration and mining activity. This is attracting worldclass mine operators and suppliers of equipment, professional services and expertise in mine financing. The country remains the undisputed leader in responsible business practices and responsible sourcing and this will attract more and more foreign investment, which will contribute to growing a world-leading mining supply and service sector.
The interest of international companies in Canada is increasing. Not only does Canada produce over 60 minerals and metals worth nearly C$48 billion, the country is a leading global producer of many minerals including those used in advanced battery technologies, such as graphite (5th) and nickel (5th) and is home to almost half of the world’s publicly listed mining and exploration companies. The Canadian government also recognises the importance of the relationship between natural resources and clean tech to the country’s economy, and is supporting investments in the cleantech sector. Canada and Australia are frequently compared in the mining business due to their similarities. Both countries have open economies with abundant natural resources, robust public geoscience programmes and minerals and metals companies that continue to be a major source of revenue. Both have a
thriving junior mining sector, big mining corporations, and a strong mining services sector, all of which have a global footprint. The trend of Australian miners migrating over to Canada is growing, whether that be through a dual listing on TSX or through investments in Canadian projects, and this in turn is driving the interest of the Australian Mining, Equipment, Technology and Services (METS) sector.
Some examples of recent developments in Canada from Australian companies include Newcrest Mining, who in 2019 acquired 70% of the Red Chris gold and copper operation in
Bertrand Raoult
Bertrand is an MBA qualified senior accounts and sales professional with over 25 years international experience. Originally from France, Bertrand moved to Australia in 2007 and previously worked in Ireland, Latin America, France and Spain. In his current role, Bertrand plays a critical role as a trusted advisor to Australian and New Zealand companies willing to set up or expand their operations in Canada. His responsibilities include: Investment support (investment business case, information and advice on doing business in Canada, strategic market intelligence, regulatory environment, incentive programmes, site visits) and introductions (promotion agencies, key contacts in private industry, academia and government, industry events and international activities, investment support professionals). a j b
Canada Trade Commissioner Service
The role of the Canadian Trade Commissioner Service is to assist Australian companies in setting up and expanding their operations in Canada. We can assist mining companies in areas such as: • provide introductions (provincial, territorial and local investment promotion agencies who can help you access local opportunities, networks and programmes, key contacts in private industry, academia and government, referrals to investment support professionals, such as lenders, lawyers, accounting firms, information specialists and private-sector industry associations, etc) • provide industry-specific regulatory environment information as well as insights on government programmes that can help you set up a business in Canada, access tax and R&D credits as well as other incentives • Provide cost benchmarks between different jurisdictions, help in site selection and organise site visits
a j @ a joint venture with Imperial Metals, and listed on TSX in October 2020, and Evolution Mining who acquired the Red Lake complex in 2020. The operation consists of the Red Lake, Campbell, Cochenour and the recently acquired Bateman mine following the Battle North Gold Corporation acquisition in May 2021.
BHP has also been very active in Canada. In March 2021, BHP announced moving its exploration headquarters to Toronto. The company is also strongly pursuing
an investment in Ontariobased Noront Resources, and announced a few weeks ago that the Jansen potash project in Saskatchewan was going ahead. Wyloo Metals’ Dr. Andrew Forrest recently announced his interest in developing a future-metals hub with capacity to produce battery materials in Ontario. Wyloo is also showing a strong interest in Noront.
We can also mention Vital Metals, North America’s second rare earths producer, who announced the launch of production at Nechalacho in the Northwest Territories in June this year. Another Australian firm - St. Barbara - launched its Atlantic gold operation in Nova Scotia in 2017, and now has three additional projects planned nearby at Beaver Dam, Fifteen Mile Stream and Cochrane Hill. Rafaella Resources has recently agreed to acquire high-grade nickel-copper sulphide projects, and owns the McCleery cobalt and copper exploration project in Canada.
ASX-listed Sayona Mining has also been very dynamic. It is developing the Authier Lithium project in Québec, undertook studies for a processing plant, developed a partnership with Piedmont Lithium to gain access to the US electric vehicle supply chain and won a bid for the North American Lithium mine and processing facility in Québec.
Autenco Minerals (Pickle Crow gold mine in Northern
Ontario), Galaxy Resources (lithium operations in James Bay in Northern Québec), Indiana Resources (St. Stephen nickel-copper-cobalt property in New Brunswick) and Austral Gold (Clapperton copper-molybdenum property in British Columbia) are other examples of Australian companies pursuing interests in Canada.
On top of these mining projects, we have also seen moves to Canada by METS companies, such as contractors, engineering services or technology or hardware providers. Byrnecut, a specialist underground mining contractor, is increasing its Canadian presence to support some of its fellow Australian customers and Barminco, a hard rock underground mining services company, commenced projects in Ontario and in British Columbia in 2020. Orica, present in Québec and Alberta, specialises in blasting, tunnelling, and automation and works with Newmont on three underground mines in Canada. Perenti, specialising in productivity solutions for mining operators, has a subsidiary in Ontario. We can also mention Micromine (Fleet management and mining control solutions) and Auteco (Consulting, engineering,
project delivery, and asset operations).
Canada’s capabilities in the Mining Sector
Abundant mineral and metal resources, sustainable mineral development, sophisticated financial institutions, broad geoscience expertise, an extensive science and technology network, as well as world-class equipment, professional services, and mine financing expertise are all strengths of Canada’s mineral sector. These key capabilities are increasingly attracting Australian companies from the whole mining ecosystem to explore Canada’s potential, either for those interested in exploring greenfield opportunities, as well as those that already have a presence in the nation and want to expand their current operations or research new initiatives. The total spent on exploration reached $2.1 billion in 2019. Juniors play an important part in the discovery and advancement of mineral projects in Canada, which are the next generation of mines. Junior mining companies invested $998 million the same year in exploration and deposit evaluation. Environmental consultants, community consultation advisers and drilling contractors are all part of Canada’s vast pool of
skilled service and equipment suppliers supporting these exploration efforts.
The Canadian Government also strongly supports the mining sector in its transition to clean and sustainable methods, to improve the productivity of current mines and create technology to accelerate the development of new mines. Improving water efficiency, minimising and managing mine waste, improving energy efficiency and reducing greenhouse gas emissions are just a few of the initiatives. This creates great opportunities for Australian METS companies providing decarbonisation, smart mining and responsible mining solutions such as: clean energy technology generation and storage solutions, alternative powered EVs, ore sorting, ventilation and waste water
management.
Financing and funding is also a key strength for Canada. With over 1,200 issuers, the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) are the world’s leading
listing venues for mining and mineral exploration businesses, accounting for nearly half of all global listings in 2018. Companies listed on these exchanges raised over a third ($6.5 billion) of the world’s total equity capital for these activities, accounting for 49% of all mineral exploration and mining equity financings globally. Mining is a cyclical and capital-intensive business with a considerable interval between initial investment and commercial production. As a result, the federal and provincial income tax systems, as well as the provincial mining tax systems, favourably treat exploration and other intangible mining expenses. Loss carry-over rules, flowthrough financing or the Mineral Exploration Tax Credit (METC) are the main tax incentives that companies could avail of in the country.
