Australia and Canada have lots in frequent on the subject of mining and sources and are essential to the trade’s international transformation.
Whereas each nations are mining super-powers in their very own proper and are supplying a major share of the sources wanted for the global energy transition, they’re additionally utilizing their management to information the worldwide trade’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 replicate the large contribution mining and sources makes to every economic system.
Equally, each nations supply substantial and comparatively untapped sources, conducive funding environments, supportive governments and well-established plans for the event of the essential minerals wanted for the worldwide vitality transition.
As a result of each have an extended historical past of working in complicated environmental and social contexts, in addition they have intensive expertise in sustainable practices and significant engagement with First Nations peoples and native communities.
Main the transformation
This sturdy shared deal with 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 trade’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 nations similar to Canada and Australia are essential to reaching the mining trade’s international environmental targets.
“To be able to scale back the mining trade’s vitality use, water use and environmental footprint by 50 per cent by 2027, the main gamers haven’t solely a possibility however a duty to work collectively on improvements that scale back waste, decrease prices and mitigate environmental impacts throughout all elements of exploration and growth,” he says.
“Canada and Australia are international leaders within the mining trade with a long time of expertise and innovation behind them, so that they have a pure function in main mining’s transformation to a extra responsive, sustainable and resilient trade.
“It’s incumbent on the 2 nations and their firms to work collectively to redefine and rethink the way forward for the trade by way of by way of how we collaborate, who we collaborate with and what we work collectively on.
Mr Weatherell says whereas the worldwide mining trade is in fact aggressive by nature, it additionally has a shared future, and by necessity has pursued lively 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 on the subject of 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 trade, recognising that these targets can solely be achieved if all stakeholders signal as much as a transparent imaginative and prescient for the long run and work in direction of it collectively.
“The mining and sources industries in Canada and Australia are main the best way on the subject of embracing the decarbonisation problem and lending their experience and expertise to nations the place they make investments.
“As we wish to say, web zero is straightforward; zero is tough. However by way of exporting their management and finest observe globally, Australia and Canada are taking part in a key function in assembly the problem.”
The identical, however totally 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 growth, notably of the sources wanted to gasoline the worldwide vitality transition.
As members of the previous British Commonwealth, each nations share an identical authorized heritage, offering a stage of consolation on the subject of assessing threat and a practical method to managing the vitality transition.
Principal and Founding father of BRIDGE©, Siri C. Genik, says whereas each are younger nations who supply traders secure jurisdictions, sturdy authorized frameworks, and respect for the rule of regulation, there are additionally variations which might influence on the danger urge for food for traders.
“We actually see a constant method to points similar to well being and security, environmental and stakeholder administration, EDI, governance and extra broadly sustainability. Each nations reveal finest practices in respect of human rights and a dedication to managing the trade’s carbon footprint.
“There are frequent core values and alternatives for larger funding, however there are variations between each nations, together with allowing processes and timelines, and totally different threat appetites and funding approaches,” Ms Genik says.
She says Australian firms – from mine operators to exploration and METS firms – wish to Canada as a key supply of the essential minerals wanted for a renewable future similar to copper, nickel, lithium, and graphite.
One such firm is the Andrew Forrest-backed Wyloo Metals, which is increasing its operations in Canada with a deal with 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 supplies the cornerstone for a globally related battery materials provide chain in Canada, whereas creating financial alternatives for native communities to thrive.”
However in keeping 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 trade 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 nations 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 sport changer. They’ve adopted plenty of very stringent sustainability necessities and laws that each one gamers within the trade 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 speak 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 searching for immediate gratification. Markets are rather more fickle right now and extra complicated, 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 need to ensure that they’re understanding and together with these non-technical dangers and that they perceive what influence and function 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 yr 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 biggest ever and consists of Canadian firms showcasing their services to the worldwide mining and sources market, notably within the Asia Pacific area, and a workforce from International Affairs Canada selling funding alternatives for firms to determine or develop their operations in Canada.
Senior Funding Officer at Global Affairs Canada, Bertrand Raoult, mentioned Canada supplies 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 essential minerals the world wants for a cleaner future. We have now sturdy 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 this planet and helps the sector by way of 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 actually units Canada aside from rivals. Due to beneficiant applications, our minerals and metals sector trade is adopting clear and cutting-edge applied sciences to make mining and processing greener, safer, smarter, and extra environment friendly.
“Consequently, Canada has one of many lowest ESG dangers throughout international mining tasks on common performing notably properly in classes similar to water utilization, group engagement, conservation and governance.”
The Canadian Crucial Minerals Technique highlights the significance of mining and sources to the nation’s international competitiveness and prosperity. The trade accounts for 626,000 direct and oblique jobs and is the biggest employer for Indigenous Peoples and 19 % 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 essential minerals, advance the participation of indigenous peoples, guarantee sustainable mining and rehabilitation practices, drive world-leading innovation, construct group help for sustainable mineral growth 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 pulls among 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 nations like Canada to draw funding, showcase their experience and have interaction 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 also 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 may possibly supply to a transitioning international trade,” Ms Richards mentioned.
“IMARC is designed to supply a discussion board to discover these alternatives and to showcase the very best and newest data, innovation, and development that profit the entire worth chain.
“Standing alongside Australia as one of many world’s largest mining nations with important function in the way forward for sources, Canada has all the time been a powerful companion of IMARC all through our 10-year historical past and we’re delighted to welcome them again as soon as once more.”