A powerful story about the future

Facing the greatest opportunity in a generation, British Columbia’s mining industry must step out of the shadows and show Canadians and the global market it’s ready to become the world’s premier supplier of critical minerals.

There are 17 proposed critical minerals mines in development in the province, representing the potential for extraordinary economic returns as the world seeks these indispensable building blocks of a net-zero future.

For years, the BC mining industry has chosen to keep a low profile, even as it has quietly led on many environmental issues. Miners in the province, for instance, have understood the value of attaining social licence from the communities in which they operate since well before environmental, social and governance (ESG) concerns went mainstream. 

Now that much of the world has begun to recognize the need to reduce carbon emissions, British Columbia is primed to become one of the most reliable and lowest-carbon-emitting suppliers of critical minerals. The industry boasts leading technical know-how and is successfully working with all levels of government to get the necessary policies in place to make these mines operational.

There remain challenges ahead, including the need to build electrical and transportation infrastructure, attract billions of dollars’ worth of investment capital, make sure First Nations communities are project partners and ensure the industry is resistant to the physical risks of climate change. While these are all manageable, they must be addressed promptly to have effect.

It’s up to the mining industry to accelerate the process by showcasing its leadership as well as the positive impact the sector can have on British Columbia, Canada and the rest of the world.

A year of progress

The BC mining industry has been working with the province to get necessary investments and policies in place, and we’re seeing progress on multiple fronts. Over the past year, the provincial government issued certificates and permits to move several mining projects ahead. It also recently unveiled a Critical Minerals Strategy, which includes the creation of the Critical Minerals Project Advancement Office to expediate review and approval processes of new mines.

As part of this strategy, the government is committing to work in partnership with First Nations and the industry to identify and advance critical minerals infrastructure, such as the North Coast Transmission Line, which is being supported by a CA$36 billion capital plan at BC Hydro.

The province is also taking significant steps to co-develop with First Nations a new fiscal relationship that will support self-determination and create more opportunities for Indigenous participation in critical mining projects on their territories.

Last November, for instance, the BC government and the Tahltan Nation signed one of the first consent-based decision-making agreements under the Declaration on the Rights of Indigenous Peoples Act. This gives the local Indigenous community final consent over any substantial changes at the Red Chris copper and gold mine in northern British Columbia.

These developments show the extent to which industry, government and First Nations can work together and produce productive outcomes. While further work is needed, this co-operation should be promoted as part of the success story behind mining in Canada.

More to be done

Energy transition 

Low-cost, dependable clean electricity is vital for the growth of mining in British Columbia and the continued decarbonization of existing mines. Mines will need to have the ability to run on clean power, which will include transitioning from diesel-fuelled haul trucks and mobile equipment to electric or hydrogen-powered vehicles.

Over the next few years, we expect to see enabling technologies for this shift commercialized, making it imperative that the province expand its electrical infrastructure today. BC Hydro has committed to spending CA$36 billion over the next decade to build out its electrical system, representing a 50% increase over its previous ten-year plan. But even more will have to be done if the province is to maximize the opportunity presented by critical minerals.

Critical investment

The process required for mining companies to acquire the necessary permits to build and operate their sites remains too long. Both the provincial and federal governments appear to understand the imperative. Ottawa has committed to reducing waiting times significantly, and the BC government is investing more money to support the permitting process.

However, the need to get mines operating can’t be overstated. Around the world, other regions that have significant critical minerals deposits are trying to attract foreign capital to develop their own projects. British Columbia, as well as Ontario and Quebec, must win this global race for capital, in part by proving they can bring mines and minerals to market in a timely fashion.

It's not just red tape that investors are concerned about. In PwC’s Global Investor Survey 2023, which polled 345 investors and analysts around the world, three-quarters of respondents said how companies manage sustainability-related risks and opportunities is an important factor in their investment decision making.

The data also showed that investors want better information from companies, including the cost of meeting sustainability commitments and a clear road map for achieving them. In fact, 75% of respondents agreed with the following statement: “How a company manages sustainability-related risks and opportunities is an important factor in my investment decision making.”

Sustainability in mining

We’re seeing examples where the BC mining industry is adopting innovative solutions to address sustainability challenges.

For instance, Taseko Mines Ltd., which operates copper mines in British Columbia and Arizona, is responding to recent drought conditions in both jurisdictions by increasing water conservation and adopting new technology. A biological water treatment project at its Gibraltar copper-molybdenum mine, in south-central British Columbia, uses naturally occurring microbes within the tailings storage facility to reduce nitrate levels. And the company is building a production facility in Florence, Arizona, that will use significantly less water per unit of production than other copper mines in the area.

“We fundamentally believe Taseko’s business success is built on the pursuit of continuous improvement in our operational, safety, environmental and social performance,” says Stuart McDonald, Taseko’s President and CEO.

While Canadian mining companies have led on ESG reporting efforts for many years, the bar is rising as new requirements come into effect. Most mid-sized to large Canadian companies are already preparing for new domestic rules, which are expected to align with the emerging international sustainability standards.

The reporting standards that are materializing will translate into better data for investors down the road. That represents an opportunity for BC miners if they make the right decisions on how to invest now to get to net zero. Already, many of the large companies that are buying critical minerals today are starting to get more strategic about their supply chains—and they’ll increasingly want to know materials have been mined responsibly.

Rethinking taxes 

A series of new Canadian taxation rules, including new interest limitation measures and recently enacted mandatory disclosure rules, is going to add another layer of compliance mining companies need to consider as they weigh investments and construct deals. The changes will require miners to quickly grasp the business implications and develop a plan to meet the data and disclosure requirements.

Labour market 

Securing sufficient capital and creating the right policies are only part of the formula for success. The BC mining industry will need to attract a wave of fresh talent in the years ahead to get the critical minerals out of the ground and off to market. Labour is already tight in the sector, and demand will only increase as projects come online and thousands of employees retire.

There’s a strong, concerted and creative effort among mining companies to attract and train new workers. The industry already receives provincial and federal support through the financing of the Centre of Training Excellence in Mining and the Mining Industry Human Resources Council. Now is the time to see an even more focused and tailored government strategy at the secondary and post-secondary education levels, as well as greater efforts to boost the participation of First Nations, women and other under-represented groups in the industry.