< PreviousVisit us online at www.CanadianMiningMagazine.com11 INDUSTRY GREETINGS he mining sector has long been intertwined with humanity’s evolution, influencing entire eras named after its products. Today, it faces a pivotal role in addressing the pressing crisis of our time – climate change. The minerals and metals extracted from the earth play an essential role in the energy transition, enabling the creation of electric vehicles, wind farms, solar panels, nuclear energy, and transmission lines. Without the contributions of the mining sector, these products central to combating climate change would not exist. This call to action comes amidst an alarming backdrop of climate-related events, including record forest fires, hurricanes, and flooding. A recent report from Politico highlighted the severity of the situation in Canada, where 40.5 million acres have burned during this year’s wildfire season, equivalent to four times the size of Switzerland. Over 6,100 fires and 3,000 Environment Canada air-quality alerts mark this year’s wildfire season as 10 times worse than Canada’s historical average. The urgency of addressing climate change is underscored by these escalating environmental challenges. Canada, in particular, is under immense pressure to provide the critical materials necessary for the global transition to a lower carbon future. Canada’s metals and minerals enjoy high demand due to our clean energy grid, robust regulatory system, and leadership in Environmental, Social, and Governance (ESG) practices. Buyers of Canadian mining products can be confident in their responsible sourcing, meeting the world’s highest standards with lower greenhouse gas emissions compared to other regions. The mining sector in Canada is recognized globally for its commitment to ESG, exemplified by initiatives like Towards Sustainable Mining (TSM). Through TSM, the sector not only contributes to the sustainable production of low-carbon technologies but also stands as one of the most significant economic contributors to the country. In 2022, the minerals sector directly and indirectly contributed approximately $148 billion, or roughly six per cent, to Canada’s total nominal GDP, employing nearly 700,000 workers across various mining-related activities. The mining sector’s ability to respond to the increased global demand for minerals and metals is further complicated by a prolonged approval process. Mining projects in Canada typically take 10 to 15 years from initial discovery to production commencement, hindering the industry’s capacity to meet growing demands. The need for coordination between federal and provincial approval processes, streamlined assessments, and a focus on critical issues is emphasized to expedite project timelines. Despite these challenges, there is some progress. The Impact Assessment Agency has started tailoring project assessments and improving its approach to Indigenous consultation. The recent opinion of the Supreme Court of Canada on the Impact Assessment Act is expected to lead to amendments that will further focus federal assessments, hopefully contributing to more efficient reviews. However, a more collaborative approach is needed between federal and provincial governments to address the complex web of approval processes. The urgency of these changes is underscored by the anticipated surge in mining activities to meet the demand for new materials crucial to the energy transition. The global surge in electric vehicle (EV) sales, with a reported increase of over 50 per cent in Europe and nearly 50 per cent in North America, intensifies the need for mining activities. The average EV battery contains approximately 185 kilograms of minerals, including lithium, cobalt, nickel, manganese, graphite, copper, iron, and aluminum. Canada, already a producer of these metals with vast untapped reserves, is uniquely positioned to contribute to a lower carbon future. Moreover, Canada’s clean electricity grid, with 82 per cent coming from renewable or non-emitting sources, results in lower carbon-intensive finished products compared to global alternatives. Several global automotive and battery manufacturers, including Volkswagen, Ford, and General Motors, are choosing Canada for their factory sites and material suppliers, taking advantage of subsidies for material sourcing and production in North America. This increased demand for minerals and metals necessitates the growth of the mining sector, requiring more mines, smelters, and refineries. However, the challenges extend beyond permitting issues to a looming human resources crisis. The industry must attract, recruit, and develop a highly skilled, safe, and diverse Pierre Gratton President and CEO The Mining Association of Canada The Critical Question: How Can Canada Build More Mines Faster?Visit us online at www.CanadianMiningMagazine.com13 Canadian mining workforce. This demand is increasing and posing challenges for a historically homogeneous sector. Demographic challenges, an aging workforce, decreasing enrollment in mining programs, and difficulties in attracting underrepresented groups compound the issue. In response to these challenges, the mining industry has launched new Towards Sustainable Mining protocols focused on improving performance in equity, diversity, and inclusion (EDI). The goal is to make the sector a more attractive employer to a wider range of Canadians and address acute workforce challenges. Companies like BHP, the world’s largest mining company, are setting examples by committing to diversity, aiming to have 50 per cent of their workforce female by the time their largest mining project in Canada, the Jansen potash mine, starts operating. As the world anticipates a potential 500 per cent increase in mineral production for the energy transition alone, the mining sector must align its workforce with the growing demands. This aligns with the global focus on seizing the moment and rising to the significant challenges posed by climate change and the transition to a cleaner, more sustainable future. Canada’s strengths in mining, mineral processing, smelting, and manufacturing, coupled with a robust mining supply business and premier listing venues, position it as a key player. The country’s clean and reliable electricity network and stable political system further enhance its global competitiveness. However, the sector must address the demographic challenges and adapt to the evolving demands of the industry. While the mining sector faces substantial challenges, it possesses significant strengths to navigate the path forward. The urgency of addressing climate change, coupled with the demand for critical minerals, necessitates a collaborative effort from the industry and government to streamline approval processes and attract a diverse workforce. Canada’s mining industry has the potential to lead the global transition to a low-carbon, clean economy, provided it addresses its internal challenges and capitalizes on its existing strengths. M The average EV battery contains approximately 185 kilograms of minerals, including lithium, cobalt, nickel, manganese, graphite, copper, iron, and aluminum. Canada, already a producer of these metals with vast untapped reserves, is uniquely positioned to contribute to a lower carbon future. – Pierre Gratton, The Mining Association of Canada ALL THE WAYS TO ADVERTISE IN CMM IN 2024! PRINT: We publish three issues each year: Winter, Spring, and Fall. Book your space now for all issues. The more issues you’re in, the more money you save! BLOGS: Showcase your expertise to our online communities! A new blog is posted every single week – why not have it be about your capabilities and technologies? Spots sell fast so book now! CMM CONNECTS: Our in-house eblast is delivered six times each year (January, February, April, June, September, and October) to an industry-specific list of 2,000+ recipients. Connect with our contacts and show them how you’re a mining sector powerhouse! COMPANY-SPECIFIC EBLASTS: In addition to CMM Connects, you can send a company-specific eblast to our digital subscriber list. Allow us to create your content or send us your own marketing material! Book for 2024 before it’s too late. SOCIAL MEDIA NETWORKS: We post news to our Facebook and Twitter pages at least three times per day. It could be yours! Ask your sales representative how to have your company’s press releases shared to our social media communities. ONLINE ADVERTISING: Year-over-year, the number of visitors to our website is growing. Target these individuals with a banner advertisement linked to your website. 02 030105 06 04Visit us online at www.CanadianMiningMagazine.com15 FEATURE anadian mining and metals companies can play a massively influential role in spearheading the energy transition. Doing so depends on the decisions made, here and now. Uncertainty abounds. Risks are evolving. Transformational forces and mega trends are reshaping markets every single day. But the societal changes and capital market dynamics we’re witnessing now only threaten the industry if we let them. Leaning into these areas can flip that paradigm, transforming inherent risks into powerful new possibilities for sustainable growth and produced-in-Canada competitive edge. It’s all a matter of perspective. How so? Our EY Top 10 business risks and opportunities for mining and metals in 2024 1 outlook reminds us that the industry is at a crossroads. While environmental, social, and governance (ESG), capital, and license to operate take the top three spots on this year’s list, it’s clear – there can be no separating one from the other. In fact, all 10 priorities on the outlook’s spectrum are inter-connected. Mining and metals companies cannot address one without simultaneously impacting another – or for that matter, several others. In this article, Theo Yameogo says it’s time for Canadian mining and metals companies to lead the way, guiding the global energy transition instead of reacting to it. By Theo Yameogo, EY AMERICAS AND Canada Mining & Metals Leader FEATURE Who should lead the world’s green energy transition? Canada, of course.16Connect with us on Facebook and Twitter Running the gambit from ESG through to climate change (fourth), digital and innovation (fifth), costs and productivity (sixth), geopolitics (seventh), cyber (eighth), new business models (ninth) and workforce (tenth), these areas reflect an intricate web of co-dependent factors. Addressing them holistically can empower Canadian organizations to carve out a powerful path forward. What could that look like? Consider ESG in and of itself. Topping EY’s annual risk and opportunity list for the third time in a row, many of the ESG factors raised in this year’s survey aren’t new in and of themselves. It’s the way they’re perceived that’s changing. Our survey reveals a growing degree of complexity and investor attention across ESG. Local community impact; tailings and waste management; water stewardship; and attaining net-zero emissions are all expected to come under a greater deal of investor scrutiny in 2024. That said, diversity, equity, and inclusion (DE&I) is hot on the heels of those headline-grabbing factors. Ethical supply chains; health, safety, and wellbeing; human rights; and social inequity are also expected to take up increasing investor attention and consideration in the year ahead – reinforcing that ESG is fundamentally about the industry’s overall impact on society as a whole, and the human ability to thrive over the long term. Thinking about ESG in isolation, though, would be a mistake. Everything is connected Essentially, ESG underpins license to operate (ranked third on EY’s list, up from the eighth spot last year). At their cores, these areas are intertwined; they’re also directly linked to capital itself. We know that competition for capital is fierce, even if mining and metals organizations hold the key to critical minerals necessary to fuel the broader transition to cleaner, greener energy sources. In Canada, we’re already seeing that play out in real time. An EY analysis of S&P Global Market Intelligence data shows exploration budgets in Canada are surging, nearly doubling from US$1,442 million in 2018 to US$2,674 million in 2022. This outpaces Australia, the United States, Chile, and every other country we included in our market scan. In a world where society expects the sector to invest more in ESG priorities, and links license to operate with these investments, there can be no separating top-ranked focus areas if you’re going to secure the capital necessary to keep on moving forward. They must be considered The industry cannot afford to sit back and observe. Proactively embracing a much more holistic and comprehensive view of the challenges we face now can best position the industry to unlock sustainable success.Visit us online at www.CanadianMiningMagazine.com17 together in order to make stronger decisions and secure strategic investments to drive better outcomes. And the same can be said across the seven other priorities that made EY’s outlook list for 2024. Climate change (ranked fourth) demands that we tackle the capital E of ESG not down the road, but here, now, today. The mining sector in Canada – and everywhere, to be honest – is expected to provide the minerals critical to the energy transition while simultaneously reducing greenhouse gas emissions (GHG). The demand for these minerals (necessary to build everything from the latest smart phone to the newest kitchen appliances to the sleekest electric vehicles) is unprecedented. At the same, operations are faced with new challenges stemming from climate change factors such as floods, wildfires, and unpredictable weather. What’s more, regulatory disclosures around climate change are changing quickly. All the while, consumers are ever more invested in making buying decisions grounded in sustainability. 2 This reflects a complicated balancing act. For the third year in a row, ESG is the biggest risk for miners, as well as their biggest opportunity to drive differentiation and improvements that will create long-term value for all stakeholders. – EY Top 10 business risks and opportunities for mining and metals in 2024 Continuing the momentum On the upside, mining has already achieved considerable momentum on the climate front. Still, taking those efforts further requires producers to address climate change as part of a clear and integrated strategy geared to drive the energy transition forward. There can be no decoupling of climate change from the first three factors on the list, or the five that come after: • Digital and innovation investments are necessary to reduce costs , improve productivity , support ESG outcomes and rally a workforce in transition. • The workforce itself requires upskilling, reskilling, digital solutions, and a cultural overhaul to ensure it can support new business models , while attracting next-generation talent with vastly different expectations around work. 18Connect with us on Facebook and Twitter • All the while, geopolitical forces and emerging cyber threats must be navigated, mitigated, and accounted for as part of the industry’s ability to operate effectively and deliver. The real question is not which risks and opportunities rank first, second, or third but rather – how can we address these 10 priorities through an integrated plan that allows us to make the greatest possible progress now? To that, I say: 1. Take an end-to-end view of issues as you unlock the upside of risks in volatile times. It may feel like a departure from traditional strategy to reposition risks through more interconnected thinking. This moment requires a fresh approach to strategy, operations, and planning; one that is grounded in bigger picture thinking. The threats are real but reducing or eliminating the vulnerabilities will strengthen one’s position going forward. 2. Adopt a mix of strategies that empowers your workforce to make consistent progress on multiple fronts. The COVID-19 pandemic taught us that mining and metals organizations have the ability to rally their teams in addressing the unique risks they are facing, and triumph in the face of the unknown. 3. Increase engagement with stakeholders, communities, and investors. This is not the time to underestimate the powerful influence your stakeholders have on top- and bottom-line results. Reframe your business plans to place greater emphasis on their needs and demands. Be sure to factor employees into that equation; they have the potential to drive progress while serving as powerful brand ambassadors for the business and the industry overall. As we have witnessed in the past, leading Canadian mining and metals organizations need to operate boldly, and act courageously. The industry cannot afford to sit back and observe. Proactively embracing a much more holistic and comprehensive view of the challenges we face now can best position the industry to unlock sustainable success. Bottom line? Let’s not react to the energy transition. We should lead it. If anyone can, it’s Canada’s mining and metals industry. M References: 1. chrome-extension:// efaidnbmnnnibpcajpcglclefindmkaj/ https://assets.ey.com/content/dam/ ey-sites/ey-com/en_ca/topics/ mining-metals/ey-final-top-10- business-risks-report-en.pdf 2. https://www.ey.com/en_gl/ news/2023/11/ey-future-consumer- index-consumers-learning-to-live- with-less-as-climate-change-and- cost-of-living-reality-hits-home THEO YAMEOGO GRADUATED IN GEOLOGY AND MINING ENGINEERING, AND SPENT MANY YEARS WORKING IN MINING OPERATIONS, ENGINEERING CONSULTING, AND BUSINESS CONSULTING. FOR THE LAST TWO DECADES, HE HAS FOSTERED BUSINESS TRANSFORMATION AND TECHNOLOGY INNOVATION ACROSS THE INDUSTRY, TO DRIVE BUSINESS EXCELLENCE AND GROWTH. HE CURRENTLY COORDINATES THE MINING AND METALS PRACTICE AT EY FOR BOTH CANADA AND THE AMERICAS. THEO HAS DONE WORK ON ALL CONTINENTS, COMBINING HIS BUSINESS AND TECHNICAL SKILLS. Next >