Now is a good time to take a look at the Canadian mining sector.
Canada has one of the largest mining industries in the world, producing more than 60 metals and minerals from 200 mines and 6,500 sand, gravel, and stone quarries. It is a global leader in potash production and a top five global producer of diamonds, gemstones, gold, indium, niobium, platinum group metals, titanium concentrate, and uranium. Of Canada’s 34 critical minerals, six (lithium, graphite, nickel, cobalt, copper, and rare earth elements) have the potential to stimulate Canadian economic growth and manufacturing and supply chains.
The value of mineral production in Canada reached CDN $74.6 billion in 2022, while the minerals and metals sector contributed CDN $109 billion (or 6%) of Canadian gross domestic product (GDP). The mining industry has a presence in every province and territory, and its activities include exploration, mining, and supporting activities (such as processing and product manufacturing).
The January 2020 Canada-U.S. Joint Action Plan on Critical Minerals aimed to strengthen North American critical mineral production for defense, aerospace, clean energy, communications, and other vital industries. Canada’s own Critical Minerals Strategy (launched in December 2022) includes $4 billion and “sets out a course for Canada to become a global supplier of choice for critical minerals and the clean digital technologies they enable.” It contains five core objectives (such as economic growth, job creation, and enhancing global security and partnerships with allies) and six areas of focus, including:
- Driving research, innovation, and exploration,
- Accelerating project development,
- Building sustainable infrastructure,
- Advancing reconciliation with Indigenous peoples,
- Growing a diverse workforce and prosperous communities, and
- Strengthening global leadership and security.
Canada is set to capitalize on the rising global demand for critical minerals. The public and private sectors are making sizeable investments to support the country’s Critical Minerals Strategy.
In May 2024, the U.S. Department of Defense (DoD) announced awards of USD $6.4 million and USD $8.3 million to Canadian companies Fortune Minerals Limited (Fortune) and Lomiko Metals, Inc. (Lomiko) through the Defense Production Act Investment (DPAI) program to help support the Canada-U.S. Joint Action Plan on Critical Minerals.
There are opportunities in Canada’s mining industry to support the critical minerals infrastructure and the electric vehicle (EV) supply chain, as well as other rapidly growing markets, including renewable energy, clean and advanced technology, batteries, and machinery that promote energy efficiencies in the mining sector. Companies offering products and services to this industry may find opportunities in Canada.
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