Exploration - Production - Financial Markets - Regulatory Framework - Services
Global Business Reports
CONTENTS
Industry Explorations
Overview
38. Interview with Gold Bullion Development Corp.
70. Clean-Tech Processing
Je Me Souviens
FRANK BASA, PRESIDENT, CEO & CHAIRMAN
39. Interview with Adventure Gold Inc.
8. An Introduction to Québec
MARCO GAGNON, PRESIDENT & CEO AND STEPHANE LE BOUYONNEC, CHAIRMAN OF THE BOARD
BENOÎT COUTURE, PRESIDENT & FOUNDER AND RAYMOND SIMONEAU, VICE PRESIDENT & FOUNDER
A BRIEF OVERVIEW OF THE PROVINCE AND ECONOMY
10. Interview with the Ministry of Natural Resources Québec MARTINE OUELLET, MINISTER OF NATURAL RESOURCES
11. Interview with the Québec Mining Association (AMQ) JOSÉE MÉTHOT, PRESIDENT & CEO
40. Interview with IAMGOLD Corp.
BOB TAIT, VICE PRESIDENT OF INVESTOR RELATIONS
41. Interview with Falco Pacific Resource Group Inc.
71. Interview with Seneca
72. Interview with COREM
PIERRE PELLETIER, PRESIDENT AND CLAIRE LAVALÉE, EXECUTIVE DIRECTOR
73. Interview with Pro-or Inc. SYLVAIN BOULANGER, CEO
KELLY KLATIK, PRESIDENT, CEO & DIRECTOR
42. Interview with Integra Gold Corp.
A RALLYING CRY FOR A STRONGER TOMORROW
HERVÉ THIBOUTOT, SENIOR VICE PRESIDENT OF EXPLORATION
VALÉRIE FILLION, EXECUTIVE DIRECTOR
CHRISTIAN BOURCIER, VICE PRESIDENT & GENERAL MANAGER OF CASA BERARDI MINE
12. Mining in Québec
FUELLING QUÉBEC’S METALLURGICAL EXPERTISE
Québec’s North A New Era in Québec
13. Interview with the Québec Mineral Exploration Association (QMEA)
43. Interview with Aurizon Mines Ltd
14. Interview with Minalliance
44. James Bay
PLAN MORT NO MORE?
45. Interview with Goldcorp Inc.
ÉRIC BEAUPRÉ, DIRECTOR OF SALES AND MARKETING
ISABELLE POIRIER, EXECUTIVE DIRECTOR AND NORMAND CHAMPIGNY, CHAIRMAN
Politics and Taxes The Regulatory Environment in Québec
A NEW WORLD-CLASS MINING CAMP GEORGE BURNS, EXECUTIVE VICE PRESIDENT & COO AND CHRISTINE MARKS, DIRECTOR OF CORPORATE COMMUNICATIONS
76. Le Nord Pour Tous 79. Interview with Technosub
80. Interview with Stornoway Diamond Corp.
46. Interview with Virginia Mines Inc.
GHISLAIN POIRIER, VICE PRESIDENT PUBLIC AFFAIRS
47. Chibougamau and Beyond
NEW REGION, NEW AGREEMENTS
48. Interview with Bowmore Exploration Ltd
THE TIGERS OF THE NORTH
49. Interview with TomaGold Corp.
PITA AATAMI, PRESIDENT
ANDRE GAUMOND, PRESIDENT & CEO
81. Improving the Public Consultation Process
REVIVING PAST MINING CAMPS
71. Analysis
PAUL DUMAS, PRESIDENT & CEO
72. Interview with Air Inuit
DAVID GRONDIN, PRESIDENT & CEO
18. Proposed Policies and New Royalties RIDING THE PQ’S LEARNING CURVE
19. Interview with Lavery
RENÉ BRANCHAUD, PARTNER; SÉBASTIEN VÉZINA, PARTNER
Strategic Minerals
FROM KATIA OPALKA, PARTNER, LAVERY
A New Era in Québec
Québec’s Framework for Raising Funds
FROM EMMANUEL SALA, ASSOCIATE, BLAKE, CASSELS & GRAYDON LLP
52. Lithium
86. Institutional Investors in Québec
RENAULT-FRANÇOIS LORTIE, PARTNER
56. Interview with Nemaska Lithium Inc. GUY BOURASSA, PRESIDENT & CEO
87. Interview with TSX Venture Exchange
20. Expert Opinion 22. Expert Opinion
24. Interview with KPMG Canada 25. Interview with KPMG
LEE HODGKINSON, NATIONAL INDUSTRY LEADER, MINING CANADA
26. Analysis
THE TIRESOME ROAD TO A FAIR TAX FOR QUÉBEC’S MINERS
27. Interview with Ernst & Young
ZAHID FAZAL, PARTNER
28. Interview with PwC Canada
NOCHANE ROUSSEAU, QUÉBEC MINING LEADER
29. Interview with Fasken Martineau FRANK MARIAGE, PARTNER
THE PROMISE OF VERTICAL INTEGRATIONS
57. Interview with Canada Lithium Corp. PETER SECKER, DEUPTY CHAIRMAN & CEO
58. Rare Earth Elements
RUSHING TO FILL CHINA’S SUPPLY GAP
60. Interview with Quest Rare Minerals Ltd PETER CASHIN, PRESIDENT & CEO
61. Interview with Commerce Resources Corp.
65. Interview with Mason Graphite Inc.
Québec’s Crowning Resource
68. Expert Opinion
DARIN W. WAGNER, PRESIDENT & CEO
67. Interview with Orbite Aluminae Inc.
RICHARD BOUDREAULT, PRESIDENT & CEO FROM JEFF HUSSEY, VICE PRESIDENT OF PROJECT DEVELOPMENT, FOCUS GRAPHITE INC.
69. Interview with Focus Graphite Inc.
GARY ECONOMO, PRESIDENT & CEO AND JEFF HUSSEY, VICE PRESIDENT PROJECT DEVELOPMENT
Québec
Global Business Reports // QUÉBEC MINING 2013
BENOÎT GASCON, PARTNER
90. Interview with Ressources Québec DENIS WILLIAMS, GENERAL MANAGER
92. Interview with Sodémex Développement Fund
TYLER MITCHELSON, PRESIDENT & CEO
TO GRAPHITE, PHOSPHATE AND BEYOND
BRIAN KENNY, CEO
37. Interview with Balmoral Resources Ltd
89. Interview with Miller Thomson LLP
63. Other Minerals
SIMON BRITT, PRESIDENT & CEO
Gold PROLIFIC AND GROWING
LOUIS DOYLE, VICE PRESIDENT - MONTREAL
62. Interview with GeoMegA Resources Inc.
66. Interview with Arianne Phosphate Inc.
32. The Abitibi Greenstone Belt
LENDING SUPPORT, FOSTERING PARTNERSHIPS
DANY PELLETIER, INVESTMENT DIRECTOR CAISSE DE DÉPÔT AND CARL GILBERT, INVESTMENT DIRECTOR
CHRIS GROVE, MANAGING DIRECTOR
BENOÎT GASCON, PRESIDENT & CEO
4
Accessing Capital
93. Interview with Royal Nickel Corp.
94. Interview with the Desjardins Group
VINCENT METCALFE, VICE PRESIDENT; JONATHAN ALLARD, SENIOR MANAGER FOR NORTHERN DEVELOPMENT AND GABRIEL ROUSSON, GENERAL DIRECTOR, METALS AND MINING
95. Surviving the Low Cycles
FLOW-THROUGH SHARES AND EXPLORATION BENEFITS
96. Interview with IBK Capital
MICHAEL WHITE, PRESIDENT & CEO
95. Interview with Osler, Hoskin & Harcourt LLP VITALE SANTORO, PARTNER AND HUGO-PIERRE GAGNON, ASSOCIATE
Newfoundland and Labrador
Industry Explorations
Global Business Reports
CONTENTS
Industry Explorations
Moving the Industry Forward
130. Interview with New Millennium Iron Corp.
Engineering, Manufacturing and Equipment
132. Interview with Labrador Iron Mines Holdings Ltd
100. Social Acceptability
SPURRING FIRMS TO STRENGTHEN ENVIRONMENTAL PRACTICIES
101. Interview with BiogĂŠnie, Division of Englobe Corp.
DEAN JOURNEAUX, PRESIDENT & CEO AND ERNEST DEMPSEY, VICE PRESIDENT INVESTOR RELATIONS & CORPORATE AFFAIRS JOHN KEARNEY, CHAIRMAN & CEO
133. Interview with Tata Steel Minerals Canada RAJESH SHARMA, CEO & MANAGING DIRECTOR
134. Infrastructure Development PORTS AND RAILS 136. Interview with Champion Iron Mines Ltd
ERIC THOMASSIN-LACROIX, GENERAL MANAGER, EASTERN AND NORTHERN CANADA
TOM LARSEN, PRESIDENT & CEO AND JEANLUC CHOUINARD, VICE PRESIDENT PROJECT DEVELOPMENT
ROB METKA, GLOBAL MANAGING DIRECTOR, INDUSTRIAL MINERALS
MARTIN BOURGOIN, PRESIDENT
102. Interview with Hatch 104. Expert Opinion
FROM ANNE-MARIE DAGENAIS, PROJECT ENGINEER AND ANDRÉE DROLET, PROJECT MANAGER, GOLDER ASSOCIATES
106. Expert Opinion
FROM VITAL BOULÉ, DIRECTOR ENVIRONMENT, ROCHE CONSULTING LTD
108. Interview with Cain Lamarre Casgrain Wells LLP
NATACHA LECLERC, LAWYER; ROBERT-ANDRÉ ADAM, EQUITY PARTNER; AND PASCAL PORLIER, PARTNER
152. Interview with Altius Minerals Corp.
CHAD WELLS, VICE PRESIDENT OF CORPORATE DEVELOPMENT
153. Interview with Ottenheimer Baker JOHN BAKER, CHAIRMAN
154. Provincial Geology
VOISEY’S BAY AND THE ISLAND OF NEWFOUNDLAND
156. Interview with Vale Newfoundland and Labrador JEFF MCLAUGHLIN, VICE PRESIDENT OF OPERATIONS AND BOB CARTER, MANAGER, CORPORATE AFFAIRS
157. Interview with Marathon Gold Corp. PHILLIP WALFORD, PRESIDENT & CEO
137. Interview with MRB & Associates Geological Consultants 138. Expert Opinion
SANDY CHIM, PRESIDENT AND CEO, CENTURY IRON MINES CORP.
139. Interview with Port of Sept-ĂŽles PIERRE GAGNON, PRESIDENT & CEO
Enabling Progress Service Companies and HSE Standards 160. A Model Support Sector ADVANCING HSE STANDARDS
Overview
161. Interview with Sikumiut Environmental Management Ltd
109. Equipment Suppliers
Quaerite Prime Regnum Dei
BEVIN LEDREW, PARTNER
111. Interview with Cowan Dynamics
142. An Introduction to Newfoundland and Labrador
LEE SHINKLE, REGIONAL BUSINESS DEVELOPMENT LEADER
SEEKING COST CONTROL IN THE DOWN CYCLE RENÉ WENKER, PRESIDENT
112. Interview with Hewitt Equipment JIM HEWITT, CHAIRMAN & CEO
113. Interview with Foramex SERGE CARON, PRESIDENT
A BRIEF OVERVIEW OF THE PROVINCE AND ECONOMY
143. Interview with the Ministry of Natural Resources Newfoundland and Labrador
162. Interview with Stantec
163. Interview with Rogers Enterprises Ltd BRUCE ROGERS, CEO
164. Expert Opinion
COLM ST. ROCH SEVIOUR, PARTNER, STEWART MCKELVEY
CAROLINE BUMUELLER, MARKETING MANAGER
TOM MARSHALL, MINISTER OF NATURAL RESOURCES
NEW TECHNOLOGY, NEW TOOLS
TAYFUN ELDEM, PRESIDENT & CEO
166. Interview with Cementation
PIERRE FRÉCHETTE, PRINCIPAL
POSTING GROWTH THROUGH THE GLOOM
167. Interview with Hard-Rok Inc.
JAMES SIDDORN, PRINCIPAL CONSULTANT
IAN MCBRIDE, PARTNER
YVAN DIONNE, PRESIDENT
FROM SEAN O’BRIEN, SENIOR GEOLOGIST AND PHILLIP SAUNDERS, MINERAL EXPLORATION CONSULTANT, DEPARTMENT OF NATURAL RESOURCES NEWFOUNDLAND AND LABRADOR
114. Interview with Dux Machinery Corporation
165. Interview with East Coast Catering
115. Innovative Consultancies
144. Interview with Alderon Iron Ore Corp.
PATRICK O’CALLAGHAN, PRESIDENT & CEO
116. Interview with Golder Associates
145. Mining in Newfoundland and Labrador
ROY SLACK, PRESIDENT CANADA
117. Interview with SRK Consulting (Canada) Inc.
146. Interview with Davies Ward Phillips & Vineberg
KEITH PHELAN, VICE PRESIDENT, NEWFOUNDLAND AND LABRADOR
118. Interview with Promine
147. Expert Opinion
119. Interview with Simsmart
MICHEL MASSÉ, PRESIDENT AND MARCOS SEVERINO, VICE PRESIDENT OF SALES
120. New Frontiers
SERVICE PROVIDERS SUPPORT THEIR EXPERTISE
121. Interview with Geologica Inc.
ALAIN-JEAN BEAUREGARD, PRESIDENT
Special Section
Mineral Wealth in Newfoundland and Labrador
The Labrador Trough
Geological Potential in the Province
124. The Labrador Trough
150. Exploiting Resources
125. Interview with Labrador City
151. Interview with Rambler Metals and Mining plc
NEW PRODUCERS EMERGE IN A TOUGH CLIMATE KAREN OLDFORD, MAYOR
128. Interview with Alderon Iron Ore Corp. MARK MORABITO, EXECUTIVE CHAIRMAN
IMMENSE POTENTIAL, YET CHALLENGES PERSIST
GEORGE OGILVIE, CEO AND PETER MERCER, VICE PRESIDENT OF CORPORATE DEVELOPMENT
QuĂŠbec
Industry Explorations
Appendix Into the Future 170. Final Thoughts 172. Travel Guide 174. Hotel Directory 176. Index & Company Guide 178. Credits
All interviews were conducted between February and September 2013. Although company transcripts have been updated wherever SRVVLEOH LQWHUYLHZV PD\ QRW UHĂ HFW WKH PRVW UHFHQW GHYHORSPHQWV of the companies featured. This research has been conducted by Gabrielle Morin, Amelia Salutz and Sulaiman Hakemy Edited by Barnaby Fletcher Graphic Design by Gonazalo Da Cunha A Global Business Reports Publication | For more information, contact info@gbreports.com, follow us on Twitter @GBReports or check out our blog at gbroundup.com
Newfoundland and Labrador
Global Business Reports // QUÉBEC MINING 2013
5
Global Business Reports
EDITORIAL
Industry Explorations
An Introduction to Québec A brief overview of the province and economy
Québec often makes the headlines. This is understandable: as Canada’s largest province by land area, and second largest by population, it holds political influence and economic importance to the country. As Canada’s only province claiming French as its sole official language, it claims a unique culture; its cuisine, architecture and natural beauty attract roughly 10 million tourists a year. Yet the media in Canada and elsewhere is more concerned with political squabbles and the fight for independence. In the 2012 provincial elections Parti Québécois (PQ) won a minority mandate. PQ’s support for Québec sovereignty has ensured that this issue remains in the public debate, even if no referendum is likely in the foreseeable future. In the meantime, the PQ’s “secular charter”; which bans conspicuous religious symbols such as headscarves yet makes allowances for exclusively Roman Catholic “items of cultural heritage”; has caused controversy. Whatever one’s position on Québec sovereignty, the feeling that these political squabbles are distracting from more important economic issues is hard to escape. Com-
pared to three other giants of Canada; British Columbia, Albert and Ontario; Québec has a significantly lower GDP per capita, a lower rate of private investment, a lower rate of home ownership, and a greater public debt. Its GDP growth has averaged below that of Canada as a whole since the early 1980s in a trend that shows little sign of changing: growth in 2011 and 2012 was 1.7% and 1% respectively, compared to figures of 2.5% and 1.7% for Canada as a whole, and its manufacturing output declined even as that of provinces such as Alberta and Ontario increased. What makes these figures most frustrating is the potential that Québec holds. The province is one of the most richly endowed mineral jurisdictions not just in resource-rich Canada, but in the world. A plethora of top universities; six in the 2013 Academic Ranking of World Universities world ranking; and a level of research and development spending that consistently ranks as the highest in Canada has enabled the development of advanced industries such as aerospace, information technology, biotechnology and health. Québec’s well-developed financial industry may lack
Québec at a Glance
GDP Growth by Province (annual average % change)
Source: Statistics Canada, Institut de la Statistique Québec, Chambre de Commerce de Montreal Metropolitain
Source: Statistics Canada
Population: 7,903,001 (2011 estimate) Capital: Québec City Head of Government: Premier Pauline Marois (Parti Québécois) Currency: Canadian Dollar (CAD) GDP: $336.38 billion (2011 estimate) Growth Rate: 1% (2012 estimate) GDP per Capita: $35,111 (2012 estimate) Economic sector breakdown: goods: 29%, services: 71% (2011 estimate) Exports: $63.53 billion (2012): aluminium, airplanes, paper, airplane parts, copper and alloys Imports: $85.61 billion (2012): petrol, automobiles, airplanes, trucks and frames Major Trade Partners: USA, UK, Germany, France, China
8
Global Business Reports // QUÉBEC MINING 2013
Canada NL PE NS NB QC ON MB SK AB BC
the size of Toronto, but it is perfectly capable of supporting economic development. In the near future, the chances of populist political posturing being put aside in favour of sensible economic reform look slim. PQ recently issued a new economic policy, “Putting Jobs First”, but many analysts have derided it as too little, too late. Rumours of an election being called in the near future will be welcome to those who blame PQ for recent sluggish growth, but elections usually delay progress in the short term, even if they are necessary in the long term. Despite these problems, Québec still has its success stories. The mining industry is one of them. While it may not enjoy the reputation for regulatory ease that it once had, it nonetheless was one of only two provinces that saw mining output increase in 2012, a year of generally falling metal prices. Even as some aspects of government policy prove to hinder rather than help, and the global mining market suffers through a dismal bear market, Québec’s private sector are still making progress. r
2008
2009
2010
2011
2012
1.1 -1.1 0.9 2.3 1.0 1.6 -0.2 4.0 5.2 1.7 1.1
-3.0 -10.0 0.4 -0.5 -0.8 -0.7 -3.3 -0.4 -4.2 -4.6 -2.7
3.4 6.4 2.8 2.1 3.3 2.5 3.5 2.6 4.5 4.3 3.0
2.6 2.8 1.7 0.6 0.2 1.7 1.8 1.8 5.0 5.3 2.6
1.8 -4.8 1.2 0.2 -0.6 1.0 1.4 2.7 2.2 3.9 1.7 Industry Explorations
ICELAND
GREENLAND
L O C AT I O N
Reykjavik
Nuuk (Godthab)
NORTHWEST ERRITORIES
Iqaluit
NUNAVUT
Yellowknife
Hudson Bay
ERTA
SASKATCHEWAN
Edmonton MANITOBA
NEWFOUNDLAND & LABRADOR
CANADA
St. John's
gary
Regina Winnipeg
QUEBEC
ONTARIO
NEW BRUNSWICK
Quebec
Fredericton
Charlottetown NOVA SCOTIA
Halifax
Montreal
Toronto
PRINCE EDWARD ISLAND
Ottawa Atlantic Ocean
UNITED STATES 500km
Population and Workforce information Source: Various
Government Debt as a Share of GDP by Province (%) Source: Statistics Canada, Conference Board of Canada, provincial governments
6,102,210
French as Mother Tongue
NL PE
4,320,300 Labor Force
NS NB QC ON
17,000
Population employed by the mining industry 2013
MB SK AB
961,700 335,900
English as Mother Tongue Unemployment Rate 2012
Industry Explorations
BC Federal -10
10
20
30
40
50
60
Global Business Reports // QUÉBEC MINING 2013
9
Global Business Reports
FACTSHEET
Industry Explorations
Major World VMS Deposits by District (by million mt)
Gold Shipments by Province Source: Institut de Statistique Quebec
2010
$ MILLION
2011
2012
Source: Geological Association of Canada
3000
DEPOSIT / DISTRICT, COUNTRY
Iberian Pyrite Belt, Spain and Portugal 2500
1500
1000
500
600
Bathurst, NB
495 400
Rudny Altai, Kazahkstan
400
Winday Craggy, BC and Green’s Creek, Alaska
300
Besshi, Japan
230
Tambo Grande
200
Mt.Read, Tasmania Black Sea, Turkey
200 200
Flin Flon - Snow Lake, MB
150
Central Mexico
650
Bergslagen - Orijarvi, Sweden and Finland
110
Central Urals, Russia
100
Northern Cordillera, BC
100 100
North Qilian, China Lachlan Fold Belt, Australia Ontario
NUMBER
Quebec
Territories
Manitoba
Brittish Columbia
Saskatchewan
COMPANY
Labrador
Maritime Provinces
Alberta
1575
Abitibi, ON-QC Southern Urals, Russia
2000
MILLION MT
Trondhjeim, Norway
100 100
PROJECT
EXPLORATION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Abcourt Mines Inc. Adventure Gold Inc. Agnico-Eagle Mines Ltd (51%) & Adventure Gold Inc. (49%) Balmoral Resource Ltd Balmoral Resource Ltd Bowmore Exploration Ltd Clifton Star Resources Inc. Exploration Typhon Inc. Falco Pacific Resource Inc. Gold Bullion Development Corp. Goldcorp Inc. Hecla Mining Company Integra Gold Corp. Maudore Minerals Inc. Metanor Resources Inc. QMX Gold Corp. TomaGold Corp.
Elder Lapaska Dubuisson Martiniere Detour East St-Victor Duparquet Fayolle Rouyn-Noranda Granada Éléonore Joanna Lamaque Vezza Lac Bachelor Lac Pelletier Monster Lake
PRODUCTION 18 19 20 21 22 23 24 25 26 27
Agnico-Eagle Mines Ltd Agnico-Eagle Mines Ltd Agnico-Eagle Mines Ltd Hecla Mining Company IAMGOLD Corp. IAMGOLD Corp. Osisko Mining Corp. QMX Gold Corp. Richmont Mines Inc. Richmont Mines Inc.
Goldex Lapa LaRonde Casa Berardi Westwood Mouska Canadian Malartic Lac Herbin Beaufor Monique
This map is intended for illustrative purposes only. It shows only a selection of currently ongoing projects and should not be used for investment purposes.
34
Global Business Reports // QUÉBEC MINING 2013
Industry Explorations
Global Business Reports
FACTSHEET
Industry Explorations
Narsajuaq Ungava
24
Province de Nain
Minto
Labrador Sea
Torn
uv
ne
g at
Zo
No
Hudson Bay
no
ea
ya u
Qu uéb ec 19 21
Ashuanipi
25
La Grande
11
Opinaca 20 26
32 54
Pa
Opatica 27
one
cht
to rau
14
one cht Allo
15 17
1
7
8 22
Abitibi
An t
icos ti
13
9
16 10 12
Pontiac
23
18
de
n Du
B as s du es S ai n
n es r e rr au e L 6 -T t -
t
H
um
be
Gaspé
Madeleine Basin
r
ge re n a i n tu Ce
Atlantic Ocean
Plate-forme du Saint-Laurent Plate-forme de la baie d’Hudson Province des Appalaches Province de Greenville Industry Explorations
Province de Churchill Province de Nain Province du Supérior
Global Business Reports // QUÉBEC MINING 2013
35
Global Business Reports
INTERVIEW
Industry Explorations
INTERVIEW WITH
Valérie Fillion EXECUTIVE DIRECTOR QUÉBEC MINERAL EXPLORATION ASSOCIATION (QMEA)
Can you provide us with an introduction to the Quebec Mineral Exploration Association (QMEA) and the main milestones that you have achieved since 2011? QMEA has a membership of almost 2,000 individuals and more than 250 corporations, which includes prospectors, explorers, producers and companies that provide services to the mining industry. Among our corporate members who offer mining services, we have drilling companies, helicopter operators, geophysics companies, laboratories providing analysis, accounting firms and law firms, as well as many others. Since 2008, we have worked to promote the mining industry’s position on the suite of legislative changes that apply to industry. Particularly in recent months, the main legislative issues affecting the industry have been the question of the province’s mining royalty regime and the draft legislation of Bill 43, for which the parliamentary commission has just been concluded. QMEA strives to represent our members’ interests to all levels of government. In addition, our role is to offer services that meet the needs of our members, from the publishing of informational materials to the organization of our two annual events: in Abitibi-Témiscamingue and in Quebec City, both of which present beneficial networking opportunities for the mineral sector in Quebec. How has the debate surrounding the royalty regime in Quebec affected the investment decisions made in the exploration sector this year? The proposed modifications to the legal framework and royalty regime call into question the decisions of investors who are waiting for the return of a more stable climate. This uncertainty has a significant impact on small businesses. Contrary to public perception, only 15% of Quebec’s underground mineral potential has been explored. Furthermore, the vastness of our territory leads to higher costs and additional 14
Global Business Reports // QUÉBEC MINING 2013
logistics support for the exploration and development of projects, especially when it comes to the development of projects and the building of infrastructure in the north of Quebec. It is particularly important that we have a regulatory framework that is transparent, stable and predictable in order to stimulate investment. We have significant challenges ahead of us and we need to find good ideas and solutions. On the other hand, the present situation offers the opportunity to certain investors to take advantage of investments with a lower yield but a longer term. Access to land is a key issue for the industry. How can the private sector engage with the government to find solutions that benefit all stakeholders? First and foremost, the government of Quebec is responsible for the management of natural resources by virtue of the Canadian constitution. Quebec’s underground potential belongs to all its inhabitants. Quebec is a vast territory and in order to improve our knowledge of its mineral potential, we must acquire more geo-scientific knowledge. We must also have access to the territory to carry out the research and development of its mining sector. It is the responsibility of the government to put in place favorable conditions for the development of the mining sector. Our members follow a code of practices and laws that govern their exploration activities. It is important to emphasize that exploration is an activity that has minimal impact on the territory. The private sector must collaborate with the government so that we can ensure the improvements made to the regulatory framework correspond with the needs of our industry and the reality of our geo-scientific and economic environments. How can the QMEA play a role in assisting Quebec’s exploration companies to improve their
approach to sustainable development? QMEA’s participation in different working committees and networking groups allows us to transmit information about best practices to our members so that they can continuously improve their operations. For example, drilling companies innovate, develop and adapt their products and working practices from utilizing biodegradable non-toxic products to using machinery that has minimal impact on the ground. Many companies also have internal processes to ensure constant improvement. The role of QMEA is to be aware of these best practices and to heighten the awareness not just of our members, but also of those who come from outside of Quebec to work within the province. How will the emergence of rare earths change exploration here in Quebec? When explorers find new sectors with interesting geological potential, where new deposits are discovered, Quebec acquires new knowledge and develops new competences. Geo-scientific data that we have gathered has helped to stimulate interest in prospection and exploration of certain areas of the province where we have little knowledge of the potential. From this, new opportunities emerge. Can you tell us about the initiatives that QMEA is partaking in to increase the number of qualified workers in the exploration sector? Over the course of the last several years, we have frequently discussed the challenge of developing labor. For example, exploration works must be supervised by geologists who are members of professional orders. The congresses and conferences held by the industry are also importance places where we can promote careers in mining. Furthermore, various organizations have also been tasked with the mission of finding solutions to the lack of skilled labor in the industry. r Industry Explorations
Global Business Reports
EDITORIAL
Industry Explorations
An Introduction to Newfoundland and Labrador A brief overview of the province and economy
Iqaluit
Newfoundland and Labrador at a Glance
NEWFOUNDLAND & LABRADOR
Source: Statistics Canada
Population: 526,702 (2013 estimate) Capital: St. John’s Head of Government: Premier Kathy Dunderdale (Progressive Conservative Party) Currency: Canadian Dollar (CAD) GDP: $33.624 billion (2011 estimate) Growth Rate: 1% (2012 estimate) GDP per Capita: $65,556 (2012 estimate) Exports: $11.32 billion (2012): fish and processed foods, oil and gas, mineral Imports: $5.33 billion (2012): mineral products, machinery Major Trade Partners: USA, China, Russia, UK, Denmark
revenue. Tourists, attracted by the province’s unique and varied geography, have arrived in ever-growing numbers. The success of this economic transformation is such that, despite the effect of the global fall in commodity prices on an economy that depends substantially on its natural resources, Newfoundland and Labrador is expected to reverse the 4.8% fall in GDP it experienced in 2012 with a 2013 growth of 6%. This would put it well above the Canadian average of 1.8% GDP growth, and in a comfortable first position among Canada’s provinces and territories; a position it is forecast to maintain with 3.8% growth in 2014. Although Newfoundland and Labrador still struggles with challenges such as high unemployment, the future is looking positive. r
permanent status as a “have not” province as economic stagnation in the 1990s led to record unemployment. An economy that for centuries had been dependent on fishing, with poor conditions preventing significant agricultural development, found itself unable to adapt to a changing global market and declining fish stocks. A number of factors have since combined to reverse the fortunes of Newfoundland and Labrador since the turn of the 21st century. The expansion of the oil and gas industry has proved an invaluable source of revenue for the province. Sensible government policies led to record budget surpluses. Increased interest and investment in the mining sector, led by exploitation of the iron ore-rich Labrador Trough, has brought jobs and tax
L O C AT I O N
With a population of just half a million, Newfoundland and Labrador may not dominate the headlines as much as its larger neighbour Québec. Its political developments and economic importance do not command the same attention as Québec, Alberta, British Columbia or Ontario. An outsider may be forgiven for viewing it as Canada’s easternmost outlier, rather than a central part of the country. Yet this would be doing a disservice to a province that has, throughout history, played an important role. Human habitation in the province dates back 9,000 years. It was the location of some of the earliest European contact with North America, first from the Norse and then the Portuguese. It was the site of England’s first permanent settlement in North America and a significant source of conflict between British, French and Spanish imperialists in the 18th Century. The process by which Newfoundland became part of Canada, which occurred only after World War Two, has been a source of extended study by historians. In the more modern age, Newfoundland and Labrador looked destined to assume a
CANADA QUEBEC
Quebec Montreal
St. John's
NEW BRUNSWICK
PRINCE EDWARD ISLAND
Fredericton
Charlottetown NOVA SCOTIA
Halifax
Ottawa 142
Global Business Reports // QUÉBEC MINING 2013
Industry Explorations
CREDITS
Global Business Reports Industry Explorations
EDITORIAL TEAM Project Director: Gabrielle Morin (gmorin@gbreports.com) Senior Journalist: Amelia Salutz (asalutz@gbreports.com) Journalist: Sulaiman Hakemy (sulaimanhakemy@gmail.com) "TTJTUBODF QSPWJEFE CZ (#3 T 7BODPVWFS 0GmDF
Senior Project Director: Katie Bromley (kbromley@gbreports.com) Senior Journalist: Ramzy Bamieh (rbamieh@gbreports.com) Journalist: Alexander Corbeil (acorbeil@gbreports.com) Executive Editor: Barnaby Fletcher (bfletcher@gbreports.com) Graphic Designer: Gonzalo Da Cunha (gonidc@gmail.com) Regional Director: Alfonso Tejerina (alfonso@gbreports.com) General Manager: Agostina Da Cunha (agostina@gbreports.com) For more information about GBR, please email info@gbreports.com. For updated industry news from our on-theground teams around the world, please follow us on Twitter @GBReports or subscribe to our newsletter at gbroundup.com. Additional copies of this book can be ordered at gbroundup.com/publications.
THANK YOU GBR would like to extend our thanks to the following organisations for the assistance provided during the research PG UIJT QVCMJDBUJPO
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) www.cim.org City of Labrador Government www.labradorwest.com Department of Natural Resources, Newfoundland and Labrador www.nr.gov.nl.ca Minalliance www.minalliance.ca Mining Association of Canada (MAC) www.mining.ca Mining Industry NL www.miningnl.com Ministry of Natural Resources QuÊbec www.mrn.gouv.qc.ca QuÊbec Mineral Exploration Association (AEMQ) www.aemq.org QuÊbec Mining Association (QMA) www.amq-inc.com Soquem soquem.qc.ca Toronto Stock Exchange (TSX) www.tmx.com Val d’Or Chamber of Commerce www.ic.gc.ca We would also like to express our sincere gratitude to all the companies, associations and individuals who took the UJNF UP QSPWJEF UIFJS JOTJHIUT JOUP UIF NBSLFU XJUI B QBSUJDVMBS NFOUJPO UP ,BUJB 0QBMLB PG -BWFSZ --1 &NNBOVFM 4BMB PG #MBLF $BTTFMT (SBZEPO --1 +FGG )VTTFZ PG 'PDVT (SBQIJUF *OD "OOF .BSJF %BHFOBJT BOE "OES�F %SPMFU PG (PMEFS "TTPDJBUFT 7JUBM #PVM� PG 3PDIF $POTVMUJOH -UE 4BOEZ $IJN PG $FOUVSZ *SPO .JOFT $PSQ 4FBO 0 #SJFO BOE 1IJM 4BVOEFST PG UIF /FXGPVOEMBOE BOE -BCSBEPS %FQBSUNFOU PG /BUVSBM 3FTPVSDFT BOE $PMN 4U 3PDI 4FWJPVS BOE 4UFWFO " 4DSVUPO PG 4UFXBSU .D,FMWFZ GPS UIFJS DPOUSJCVUJPOT PG FYQFSU PQJOJPO BSUJDMFT UP UIJT QVCMJDBUJPO
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Global Business Reports // QUÉBEC MINING 2013
5IJT CPPL XBT QSJOUFE CZ -FT $PQJFT EFT MFT $BQJUBMF *OD XIP DBO CF GPVOE BU #PVMFWBSE $IBSFTU &TU 2VĂ?CFD ( , ( PS DPOUBDUFE PO Further information can be found at www.copies-capitale.qc.ca. Industry Explorations