Mining
Canada’s mining industry has a celebrated past, vibrant present and exciting future, offering tremendous investment opportunities. It starts with leadership in metals and minerals: over 60 are produced here. Clean, renewable energy is abundant. Canada also offers strong capital markets to finance development, supportive governments at all levels and firm commitments to ESG principles. Foreign Investment Promotion and Protection Agreements (FIPAs) and free trade agreements (FTAs) provide unparalleled market access. The future of mining starts in Canada.
The advantage you have in Canada is ESG. […] Part of the way we do business in Canada [is] governance, community outreach; we’ve got a history and a culture of mining here. So we know what it takes on the S and G side. But when you look at the environmental, Canada’s got one of the cleanest grids in the world.
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Opportunities in Mining
A comprehensive publication reveals the full spectrum of investment opportunities in Canada’s minerals and metals sector.
Base metals
Copper—a critical mineral needed for clean technologies ranging from wind turbines and solar panels to electric vehicles and batteries—is sourced from over 30 mining operations in Canada. The country is one of the world’s top ten producers of zinc, a durable and versatile metal central to modern life. And Canada ranks among the world’s top 10 producers for iron ore, essential to steel.
Critical minerals and battery materials
Canada is a natural location for investment in critical minerals, which are essential to renewable energy, clean technology and advanced manufacturing supply chains. Canada is the only country in the Western Hemisphere that has all the critical minerals required for EV batteries: graphite, nickel, aluminum, copper, lithium, cobalt, manganese, molybdenum, and rare earth elements. Canada’s mining industry is ranked among the top five producers of aluminum, diamonds, gemstones, gold, indium, niobium, platinum group metals, titanium concentrate and uranium.
Potash
Canada is the world’s largest producer and exporter of potash, a vital plant and crop nutrient primarily used in fertilizer critical to agriculture. Potash contributes to increasing crop yields which help feed a growing world whose food demands are rising. Canada leads the world in potash reserves, with 1.1 billion tonnes. Saskatchewan, ranked #2 globally for mining investment attractiveness, has Canada’s largest potash reserves.
Gold, diamonds and platinum
Gold is Canada's most valuable mined commodity, with a production value of $12.3 billion in 2020.The value of Canadian gold exports in 2020 was $23.7 billion, a 6% increase from the previous year’s total of $22.3 billion. In 2019, Canada was the world's third largest producer of rough diamonds by value (12.5% of world production) and the third largest producer by volume (13.5% of world production). Canada is a significant global producer of platinum group metals (PGMs), ranking third in palladium production and fourth in platinum production.
Mining support activities
Beyond natural mineral deposits, Canada’s mining leadership extends to capital funding, exploration, primary processing and downstream product manufacturing. Canada’s primary equity markets—the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV)—are home to 43% world’s public mining companies.
7 Reasons why Canada is a global mining leader
Vast resources, excellent talent and an unparalleled ESG commitment. This is just the beginning of the reasons why global investors choose to invest in mining in Canada.
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Investing in mining in Canada
Canadian Minerals and Metals Plan
Launched in March 2019, the Canadian Minerals and Metals Plan (CMMP) includes six action plans to build on Canada’s mining leadership: Economic Development and Competitiveness; Advancing the Participation of Indigenous Peoples; Protecting the Environment; Science, Technology and Innovation; Communities; and Global Leadership.
Indigenous participation in mining has largely been driven through around 455 agreements signed between companies and communities. More than 600 Indigenous communities are located within a 100-kilometer radius of major minerals and metals projects, and more than 200 Indigenous businesses supply the extractive industry in Canada today.
With protecting the natural environment also being a core plan of the CMMP, the long-established, globally recognized Towards Sustainable Mining (TSM) standard is a strong reflection of ESG commitments in Canadian mining.
Incentives
The Accelerated Capital Cost Allowances (ACCA) can provide for a depreciation allowance of up to 100% of the asset cost. To be eligible, assets must have been acquired before the beginning of commercial production, or for major expansions, or (since 1996) for the portion of investment expenditures in excess of 5% of gross income from the mine.
The Mineral Exploration Tax Credit (METC) helps exploration companies raise equity funds by passing on tax credits to investors on eligible expenses. The 15% non-refundable tax credit can be applied against investors’ federal income tax that would otherwise be payable for the taxation year in which the investment was made.
Flow-Through Shares (FTS) allow foreign investors to transfer eligible exploration and development expenses to their beneficial owners, which can then be applied for tax credits for these expenditures.
The Scientific Research and Experimental Development (SR&ED) Program provides income-tax credits and refunds for expenditures on eligible R&D activity in Canada.
Canadian Exploration Expense Claims (CEEs) and Canadian Development Expense Claims (CDEs) are separate federal income tax deductions for expenses related to mining exploration and mining development.
Leading research institutes
You're in good company
Recent Investment Announcements
BHP
Anglo-Australian BHP announced it is moving ahead with the Jansen Potash Project in Saskatchewan. The single largest investment in the province’s history, the Jansen project will see BHP investing $7.5 billion, in addition to the $5 billion already spent. The project will create 3,500 jobs during construction and 600 direct jobs upon completion at the mine site and corporate office in Saskatoon.
BHP
Anglo-Australian BHP has moved its exploration headquarters for nickel and copper from Santiago, Chile and Arizona, USA to Toronto. BHP’s move to Canada comes as nickel and copper expect to see increased future demand from electric vehicle industry growth.
Piedmont Limited
Piedmont Limited (Australia) invested $14.5 million in Sayona Mining’s lithium project in Quebec with a supply agreement for 50% of the mine’s lithium spodumene production.
Sumitomo Metal Mining
Sumitomo Metal Mining (Japan) entered into a joint venture with Canadian mining company IAMGOLD to proceed on construction of the US$ 1.3 billion Côté Gold Project near Gogama, Ontario. A world-class gold deposit, Côté is anticipated to generate over 1,000 jobs during construction and450 jobs during operations.
Rio Tinto
Anglo-Australian-headquartered Rio Tinto announced plans to invest $250 million in its Vaudreuil alumina refinery, extending operations at the plant beyond 2022. The refinery supports over 1,000 jobs in Quebec’s Saguenay-Lac-Saint-Jean region.
ArcelorMittal
ArcelorMittal Long Products Canada, a subsidiary of Luxembourg-based ArcelorMittal, invested nearly $70 million in its Contrecoeur, Quebec steel production facilities. The investment enables the company, which supports 1,700 direct jobs in Quebec and Ontario, to maintain its leading position in steel in North America, with a focus on product quality facilitated through modern plants and a reduced environmental footprint.