PDAC: Canada must build processing now, panelists say

Canada has a historic opportunity to build new processing facilities in the country as additional mines get developed amid a global resource boom, attendees were told at the Prospectors and Developers Association of Canada annual convention.Although it’s a leading hub of mining finance, with the Toronto Stock Exchange and its venture component home to more than 1,095 mining and mineral exploration issuers worth a combined C$600 billion ($438 million) in market capitalization, Canada counts few mining behemoths these days. One of those, Vancouver-based Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK), agreed in September to merge with Anglo American (LSE: AAL) under a proposed US$53 billion (C$73 billion) transaction.Foreign takeovers of large-scale Canadian miners such as Inco, Falconbridge and Rio Algom have turned Canada into an economy that’s more focused on extracting and exporting raw materials than building value-added processing activities at home, Canada Nickel (TSXV: CNC; US-OTC: CNIKF) CEO Mark Selby said Monday in Toronto. That’s a model that Ontario Energy and Mines Minister Stephen Lecce refers to as “ripping and shipping.”“One of the big mistakes this country made was 25 years ago, letting the gutting of the major mining companies that used to be headquartered here,” Selby said during a panel discussion. “Not only did they build the mines in Canada, but a large number of the base metals operations in Canada were built by one or more of those companies.”Fresh momentumAttitudes in Ottawa and several provincial capitals appear to be changing. Under Prime Minister Mark Carney, Canada last year created a new Major Projects Office that aims to accelerate critical minerals projects. The federally backed Canada Growth Fund has also begun co-investing in projects including those of Nouveau Monde Graphite (NYSE: NMG; TSX-V: NOU) in Quebec, Foran Mining (TSX: FOM; US-OTC: FMCXF) in Saskatchewan and the Thompson nickel mine complex in Manitoba, signalling federal backing to private investors.Canada already has the infrastructure it needs to handle higher materials exports over the coming decade, Patrice Boulanger, vice president of marketing at Nouveau Monde, told conference attendees.“We have the infrastructure to do a lot of exports,” Boulanger said. “We have deep-sea ports on both the Atlantic Ocean and the Atlantic Ocean. We have a beautiful railway system and trucking system. These are all assets on which we are counting to position Canada for the next 10 years.” Major projectsCanada’s willingness to prioritize mining investment comes at a time when Western governments are under pressure to secure domestic supplies of critical minerals and reduce reliance on China-dominated supply chains. There’s also a new urgency for resource self-sufficiency when the Trump administration levies tariffs against its biggest trading partner – Canada.Even so, Anglo American’s decision to move its headquarters to Vancouver from London if its proposed combination with Teck goes ahead is a positive sign, Selby said.“I’m very happy that Anglo Teck is talking about being headquartered in Vancouver because that’s what we need,” he said. “We need a new round of Canadian champions. We need domestic champions that want to put Canadian assets at the top of the list to make sure that they go first.”Shorter timelinesBuilding mines more quickly will be key to ensuring that Canada can start adding processing facilities, Foran CEO Dan Myerson told the panel.“If Foran can build a copper mine in under five years, so can others,” he said. “More mines will come. Midstream and downstream facilities will come as we build more mines. Don’t miss out. The world is watching. The critical minerals that the world needs are in Canada. Don’t be the one to miss out on the opportunity.”There’s no time to waste, added Canada Nickel’s Selby.“We’ve forgotten how to do process materials downstream,” he said. “Once it leaves the country, all that value is gone. I would really encourage everybody listening here that this is a once-in-a-lifetime opportunity to become a world a leader again in downstream processing, which Canada used to be.”Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com