What’s critical to critical minerals?

With the accelerating transition to a low-carbon economy, the global race is on to find the minerals that will fuel this shift. Across the world, governments are scrambling to keep up, working to simplify permitting rules, introduce incentives and building the needed infrastructure to kick-start new supply chains. The good news is that with an abundant supply of these minerals as well as companies with the expertise to develop mining projects in a sustainable way, Canada is well positioned to both contribute to and benefit from this transition. In order to do so, however, it is critical that Canada creates the right policy framework. Recent government efforts have successfully focused on attracting and enabling the construction of downstream battery facilities and retooling auto plants for electric vehicle (EV) production. While these are big wins for Canada and important components of the EV supply chain and Canadian economy, the upstream component of that supply chain—the mines that provide the minerals—also needs attention. Canada’s competitive advantage is there to be tapped. The first element of building that upstream component must be harnessing and further supporting the skills, experience, and broad existing infrastructure of our established mining industry. Canada is, and has for decades been, world-renowned for our mining industry’s technical expertise, our highly skilled workforce, our capacity for innovation, and our industry-leading focus on sustainable, community-supported mining initiatives. Ammar Al-Joundi is the president and CEO of Agnico Eagle Mines Limited. Photograph courtesy of Agnico Eagle Mines Limited Our governments must quickly leverage this global competitive advantage through focused and effective support of all the foundational elements that create a competitive mining industry. This means suppliers, contractors, educational institutions, local communities, First Nations, and the mining companies themselves (both established leaders, as well as startups). Narrow application of measures and policies to promote critical minerals alone risks overlooking the reality that many mines are polymetallic. For example, Agnico Eagle’s LaRonde mine in Quebec produces gold and silver, as well as copper and zinc. Junior companies can play an important role, but building world-class mines (regardless of the metal) requires operators who bring the experience, the capital, and the technical know-how to build and operate—and responsibly close—what are large, complex operations. The best way for Canada to succeed in the race for critical minerals is through policies that support the entire mining sector. A second element necessary to build our upstream supply chain is to reduce the time required to develop a mine. Currently, it can take as long as 25 years to put a mine into production. At this rate, the world will not have the minerals supply needed in time to meet the commitments of the Paris Agreement. We can accelerate this process without compromising environmental protection, simply by streamlining and harmonizing current regulatory processes. Developing mines more quickly also requires the Government of Canada to invest more in infrastructure. According to the Mining Association of Canada, the infrastructure gap in Canada’s Arctic makes it one of the most expensive jurisdictions for mineral development in the world. The cost of developing an Arctic mine is more than double that in the south. Finally, the success of a project depends on social acceptability and the ability to build and maintain trusting relationships with stakeholders and Indigenous partners. In the past few decades, Canadian miners have made significant strides in these areas. For example, Agnico Eagle’s partnerships in Nunavut are driving Indigenous employment and training, procurement, and entrepreneurship—underpinned by trust and mutual respect. Already one of the largest employers of Indigenous people in Canada, the mining sector is well positioned to drive our country’s economic reconciliation. The Canadian mining industry sets the global standard for sustainability and stakeholder relations. This is an opportunity for our country to create generational value while helping solve one of the world’s greatest climate challenges. By leveraging the expertise of all industry players, we can deliver a future in which Canada is a leading and responsible supplier of the minerals deemed critical to the low-carbon economy and clean energy future. Ammar Al-Joundi is the president and CEO of Agnico Eagle Mines Limited. The Hill Times

What’s critical to critical minerals?

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What’s critical to critical minerals?

This is an opportunity for our country to create generational value while helping solve one of the world’s greatest climate challenges.

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