Another not-a-bad year for mining!
Earlier this year, I expected that big restructuring and acquisition deals will dominate the news in 2023. To name a few: Last week, Iamgold signed an agreement to acquire Vanstar Resources. Last November, Teck Resources, Canada’s largest diversified miner, has agreed to sell its steelmaking coal business in a series of deals that are worth at US$9 billion.
Swiss commodities giant Glencore will acquire a majority ownership and has agreed to pay US$6.9 billion for a 77% ownership of the coal business, currently known as Elk Valley Resources. Additionally, Japanese Nippon Steel will acquire a 20% stake. Also recently, in a historic deal that adds to Newmont’s position as the world’s largest gold producer while boosting its production of the copper needed for the energy transition, the Colorado-based miner has completed the roughly US$19 billion buyout of Newcrest Mining.
Here in Canada, the federal government ended the 2023 year on a positive note and recently announced the Critical Minerals Infrastructure Fund (CMIF) that will provide up to $1.5 billion in federal funding over seven years for clean energy and transportation infrastructure projects necessary to enable the sustainable development and expansion of critical minerals in Canada. CMIF funding addresses key infrastructure gaps in the exploration and mining of critical minerals value chains and is intended to help unlock new critical mineral resources, support improved environmental performance at mine sites, facilitate market access for critical minerals, and strengthen supply chains. The fund is also expected to advance reconciliation with Indigenous Peoples by supporting Indigenous consultation and participation, as well as benefits from infrastructure projects that enable critical minerals development. CMIF funded projects must be located entirely in Canada.
This issue is our first combined December/January issue. In this issue, we focus on international mining topics. Internationally, Canada is one of the leading mining countries and one of the largest producers of minerals and metals. Canada’s mining sector has investments in over 100 countries worldwide. Thousands of Canadian mining supply and services companies are also working with the sector internationally. Articles on pages 16 to 33 cover several topics related to international mining, including EY experts forecast for the year ahead, a look at Canadian mining companies and global insurance, and Norway’s plans to open its territorial waters to deep sea mining.
Our regular columns also discuss international mining issues. On page 8, our Law column reflects on the 2023 trendy subject of the rise of resource nationalism in the global critical minerals industry. Additionally, J. Tom Hatfield from McMillan LLP explains how to manage the risks of enforcing against a sovereign state on page 10. The issue also contains several state-of-the-art technology and maintenance articles and more.
Finally, our team wishes our readers Happy Holidays and a Happy New Year. Our next issue is February/March issue that will feature our annual review on the state of mining in Ontario, and a look at the new technology and innovations emerging from the rich vein of suppliers in the province. Relevant editorial contributions can be sent directly to the Editor in Chief no later than Feb. 7th, 2024.