Australia and Canada have quite a bit in frequent with regards to mining and sources and are vital to the business’s international transformation.
Whereas each international locations are mining super-powers in their very own proper and are supplying a big share of the sources wanted for the global energy transition, they’re additionally utilizing their management to information the worldwide business’s transition to a sustainable future.
Australia and Canada are recognised as the 2 largest exploration locations in greenback worth phrases, with inventory exchanges that mirror the big contribution mining and sources makes to every economic system.
Equally, each international locations supply substantial and comparatively untapped sources, conducive funding environments, supportive governments and well-established plans for the event of the vital minerals wanted for the worldwide vitality transition.
As a result of each have a protracted historical past of working in advanced environmental and social contexts, in addition they have in depth expertise in sustainable practices and significant engagement with First Nations peoples and native communities.
Main the transformation
This robust shared concentrate on ESG ideas and dedication to up to date mining practices have seen Canada and Australia emerge prior to now decade as key leaders within the international business’s response to the challenges dealing with mining globally.
CEO of the Canada Mining Innovation Council (CMIC) Carl Weatherell says the management of the mature mining international locations reminiscent of Canada and Australia are vital to attaining the mining business’s international environmental targets.
“To be able to scale back the mining business’s vitality use, water use and environmental footprint by 50 per cent by 2027, the main gamers haven’t solely a possibility however a accountability to work collectively on improvements that scale back waste, decrease prices and mitigate environmental impacts throughout all elements of exploration and improvement,” he says.
“Canada and Australia are international leaders within the mining business with a long time of expertise and innovation behind them, in order that they have a pure position in main mining’s transformation to a extra responsive, sustainable and resilient business.
“It’s incumbent on the 2 international locations and their firms to work collectively to redefine and rethink the way forward for the business when it comes to when it comes to how we collaborate, who we collaborate with and what we work collectively on.
Mr Weatherell says whereas the worldwide mining business is in fact aggressive by nature, it additionally has a shared future, and by necessity has pursued energetic collaboration on shared challenges, notably round decarbonisation.
“We name this ‘coopertition’ and it is likely one of the causes occasions like IMARC are so vital with regards to pursuing these shared targets.”
He believes Canadian and Australian mining operators and innovators have lengthy understood the necessity for a cooperative effort towards a extra environment friendly, sustainable business, recognising that these targets can solely be achieved if all stakeholders signal as much as a transparent imaginative and prescient for the longer term and work in direction of it collectively.
“The mining and sources industries in Canada and Australia are main the best way with regards to embracing the decarbonisation problem and lending their experience and expertise to international locations the place they make investments.
“As we prefer to say, web zero is simple; zero is tough. However by exporting their management and finest follow globally, Australia and Canada are taking part in a key position in assembly the problem.”
The identical, however completely different
From an investor perspective, Canada and Australia are thought-about low-risk jurisdictions, with insurance policies and regulatory settings that welcome, encourage and incentivise exploration and improvement, notably of the sources wanted to gas the worldwide vitality transition.
As members of the previous British Commonwealth, each international locations share an identical authorized heritage, offering a stage of consolation with regards to assessing danger and a practical method to managing the vitality transition.
Principal and Founding father of BRIDGE©, Siri C. Genik, says whereas each are younger international locations who supply traders secure jurisdictions, robust authorized frameworks, and respect for the rule of legislation, there are additionally variations which may influence on the chance urge for food for traders.
“We definitely see a constant method to points reminiscent of well being and security, environmental and stakeholder administration, EDI, governance and extra broadly sustainability. Each international locations display finest practices in respect of human rights and a dedication to managing the business’s carbon footprint.
“There are frequent core values and alternatives for better funding, however there are variations between each international locations, together with allowing processes and timelines, and completely different danger appetites and funding approaches,” Ms Genik says.
She says Australian firms – from mine operators to exploration and METS firms – want to Canada as a key supply of the vital minerals wanted for a renewable future reminiscent of copper, nickel, lithium, and graphite.
One such firm is the Andrew Forrest-backed Wyloo Metals, which is increasing its operations in Canada with a concentrate on nickel and copper.
Wyloo Metals CEO Luca Giacovazzi says the corporate’s investments, notably within the institution of a world-class Future Metals Hub in Ontario, underscore his perception in Canada’s long-term potential to be a globally related producer of dependable and responsibly sourced battery metals.
“Canada has a once-in-a-generation alternative to determine itself as a serious participant within the new economic system. Our proposed Future Metals Hub offers the cornerstone for a globally related battery materials provide chain in Canada, whereas creating financial alternatives for native communities to thrive.”
However in line with Ms Genik, whereas funding in Canada is at wholesome ranges, fewer Canadian firms have been investing in tasks in Australia. She mentioned this can be a mirrored image of a world mining and sources business in transition, with older funding paradigms being challenged and new alliances being shaped, notably round useful resource provide resilience.
Regardless of this, she mentioned this shift in globalisation additionally represents alternatives for Canadian and Australian firms.
“There are new relationships and alliances being shaped as nations are more and more wanting to face on their very own and – to the extent they’ll – be extra self-reliant and work with companions with shared values.
“It’s not simply the Russia-Ukraine scenario that’s driving this, however you are additionally seeing related traits throughout Asia and South America, creating new alternatives for funding for international locations like Canada and Australia.
“Because the EU is striving to make sure elevated sustainable worth chains for all merchandise being included within the items they manufacture, it has been an vital recreation changer. They’ve adopted quite a lot of very stringent sustainability necessities and laws that each one gamers within the business might want to meet if they need their merchandise to be included in merchandise manufactured or assembled within the EU.
“Different nations are striving to additionally meet these necessities, and once more, Australian and Canadian firms can discuss to.
“The urge for food remains to be there, the traders proceed to hunt a return on their funding, however not at any price, and never all the time looking for instantaneous gratification. Markets are far more fickle as we speak and extra advanced, with geopolitics creating difficult dynamics for traders. We’re seeing investor expectations transcend the worth of the asset and focussing on a wholistic method to the corporate. Buyers wish to guarantee that they’re understanding and together with these non-technical dangers and that they perceive what influence and objective is.
“The chance for Canada and Australia is to proceed to place themselves as sustainable leaders to achieve success on this period of shifting and transition.”
Canada involves IMARC 2023 in Sydney
Canada will proceed its lengthy affiliation with the International Mining and Resources Conference (IMARC) being held in Sydney, Australia this 12 months with a delegation selling the nation’s imaginative and prescient to be the main mining nation within the twenty first century.
The delegation guarantees to be the most important ever and contains Canadian firms showcasing their services to the worldwide mining and sources market, notably within the Asia Pacific area, and a crew from World Affairs Canada selling funding alternatives for firms to determine or increase their operations in Canada.
Senior Funding Officer at Global Affairs Canada, Bertrand Raoult, mentioned Canada offers a extremely aggressive worth proposition for traders.
“Canada is a world mining chief, producing over 60 minerals and metals and residential to superior exploration tasks for lithium, uncommon earths, and different vital minerals the world wants for a cleaner future. Now we have robust mineral exploration, mining and mineral processing sectors and these are attracting downstream manufacturing, as we’re shifting towards vertically built-in provide chains,” he mentioned.
Mr Raoult mentioned Canada is likely one of the most mining-friendly jurisdictions on the planet and helps the sector by beneficiant applications and incentives, aggressive tax insurance policies, a wealthy innovation ecosystem and Free-Commerce agreements that give traders entry to greater than 50 markets.
“However it’s maybe our environmental, social and governance experience that really units Canada aside from rivals. Due to beneficiant applications, our minerals and metals sector business is adopting clear and cutting-edge applied sciences to make mining and processing greener, safer, smarter, and extra environment friendly.
“In consequence, Canada has one of many lowest ESG dangers throughout international mining tasks on common performing notably properly in classes reminiscent of water utilization, neighborhood engagement, conservation and governance.”
The Canadian Vital Minerals Technique highlights the significance of mining and sources to the nation’s international competitiveness and prosperity. The business accounts for 626,000 direct and oblique jobs and is the most important employer for Indigenous Peoples and 19 p.c of Canada’s whole home exports, and roughly $47 billion in mineral manufacturing come from mines and quarries throughout all areas.
Mr Raoult mentioned: “Canada’s imaginative and prescient is to responsibly develop its geological sources, together with vital minerals, advance the participation of indigenous peoples, guarantee sustainable mining and rehabilitation practices, drive world-leading innovation, construct neighborhood help for sustainable mineral improvement and entice underrepresented teams to this high-tech sector that’s key to a inexperienced economic system.”
The Worldwide Mining and Sources Convention (IMARC) is returning to the ICC Sydney from 31 October – 2 November 2023. As one of many world’s largest and most influential mining occasions, IMARC creates a world dialog that draws a number of the most influential leaders within the mining, funding, and METS for 3 days of studying, deal-making and unparalleled networking.
IMARC Chief Working Officer Anita Richards mentioned IMARC 2023 is the perfect alternative for international locations like Canada to draw funding, showcase their experience and interact with mining and METS firms, traders and suppliers to collaborate and develop enterprise alternatives.
She mentioned it was notably encouraging to see giant delegations from the resource-rich Canadian provinces of Ontario and Quebec, which demonstrated the significance that not solely nationwide however state and native governments are inserting on IMARC as a key discussion board for funding attraction.
“Actually, we’re seeing an identical development with Australian state governments, who may even be at IMARC 2023 in unprecedented numbers, specializing in the distinctive alternatives that every supply.
“For its half, Canada has a terrific story to inform about as a secure and enticing vacation spot for international funding within the sources the world wants for a cleaner future, and the experience and management it could actually supply to a transitioning international business,” Ms Richards mentioned.
“IMARC is designed to offer a discussion board to discover these alternatives and to showcase the perfect and newest information, innovation, and progress that profit the entire worth chain.
“Standing alongside Australia as one of many world’s largest mining nations with vital position in the way forward for sources, Canada has all the time been a robust companion of IMARC all through our 10-year historical past and we’re delighted to welcome them again as soon as once more.”