In the recently launched report, Ontario Mining 2022, Global Business Reports (GBR) explores how the Canadian province has not only retained a global leadership position, but planted the seeds to remain strong throughout the transition economy.
Solidifying future gold production:
Ontario is host to 40 operational mine sites and is the largest Canadian producer of PGMs, nickel and gold. Banking on the precious metal’s value as a hedge against inflation, Ontario has a strong position when it comes to new gold mines.
Equinox and Orion Mine Finance Group’s Greenstone mine has started construction and will be one of the largest in Canada, costing about $1.23 billion. It is expected to produce more than 5 million oz Au, with 400,000 oz/y for the first five years, with a 14-year mine life. Construction at Argonaut’s Magino gold mine is on-going, with production scheduled for 2023, and at IAMGOLD’s Côté project construction is on-schedule to begin production the same year.
“I am excited about numerous areas continuing to see significant gold exploration and activity, such as Timmins, Kirkland Lake, Wawa, Red Lake and the Kenora mining district. There is a new center of gravity emerging for mining in northwestern Ontario, particularly for gold opportunities.”
Greg Rickford, Minister of Northern Development, Mines, Natural Resources, and Forestry.
Read more on GBR’s Ontario Mining 2022 report: “A new wave of Ontario gold mines”
M&A has been on the rise throughout 2021 with companies looking to consolidate whole mining regions. Perhaps the most notable is the merger of Agnico Eagle and Kirkland Lake Gold. Now the merger is complete, the company has approximately $2.3 billion of available liquidity, with a mineral reserve base of 48 million oz Au.
Single-asset companies that have struggled to replenish reserves through the downturn are now keen to partner with stronger players.
The TSX has seen a rebound within the mining space with the return of generalist investors. With 14 mining companies on 2021’s TSX30 ranking, a renewed interest in the sector seems to be taking place. There are currently record levels of mining companies looking to graduate from the TSXV to the TSX, with the time spent on the former declining. Companies graduating from the TSXV to TSX made up 56% of new TSX mining listings up until August 2021, a 13% increase from 2020. On the TSX 30, Aura Minerals took the top position in 2021, with a strong presence of mining companies across the whole list.
With an 85% gold-focused portfolio, Star Royalties generated the first carbon-negative gold royalty platform with Green Star Royalties, which will position the company to be carbon negative by 2023. A core focus on decarbonization and ESG is driving the investor market.
Read more on GBR’s Ontario Mining 2022 report: “Mining Finance and Investment”
Entering the electrification race: The transition towards electrification and the ‘green-revolution’ is fundamentally reliant on the mining sector’s ability to ramp up production while keeping carbon emissions low. The impact of climate change has rippled across the world, with U.N. Secretary-General António Guterres speaking of a "code red for humanity”.
In response, the Canadian government has invested C$40 million into the Centre of Excellence in Mining Innovation (CEMI) to fund the Mining Innovation Commercialization Accelerator (MICA). The multi-disciplinary network will be developing clean tech, robotics and automation, which will help extend mine life, shorten the time needed to bring projects into production, and increase safety and efficiency while reducing emissions.
“Borden is a mine of the future where we are looking to use electric technology, not only for the mine, but to prove the technology up and replicate it elsewhere, much like we are doing with autonomous haulage at Boddington in Australia”
Tom Palmer, President and CEO, Newmont
‘Innovation for Mining’ is the term used by CEMI to reference the urgent need for cross-sector collaboration to find solutions for the mining sector’s challenges to lower production costs so as to make more projects viable while simultaneously reducing carbon emissions.
Adopting renewable energy and electric vehicles needs to be made possible not only for majors, but for the whole value chain. Financial challenges are an obstacle for smaller companies that do not have the capex to invest in these technologies.
Ontario has developed international partnerships to draw technology companies from all over the world as an ideas-tank. Following a successful initial program with Vale, NORCAT launched an open innovation platform to share challenges faced by the sector to a larger global technology network.
Related: Partner content: Can West Africa Meet its Growing Potential?
NORCAT’s Underground Centre in Sudbury continues offering companies the possibility to trial run technologies in an operational mine to test, promote and de-risk them. With a focus on safety, ESG and the latest innovations, Ontario is positioned to continue playing the key role in the development of mining for the years to come.
What else is happening in the province of Ontario to ramp up mining and exploration to meet global demand in upcoming years?
Ontario Mining 2022 includes chapters on Production in Ontario and Junior Exploration providing an overview of what is happening on the ground, and also covers companies headquartered in Toronto with operations abroad in Toronto’s Global reach. Leading the Charge explores how the province is overcoming the challenges of the transition towards electrification and decarbonisation.
Ontario Mining 2022 provides interviews with the most important stakeholders of Ontario’s powerful mining industry, including with Mark Bristow (Barrick), Duncan Middlemiss (Wesdome), Dan Symons (Argonaut), and Greg Rickford, Minister of Northern Development, Mines, Natural Resources, and Forestry, amongst others.
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The preceding Joint-Venture Article is PROMOTED CONTENT sponsored by Global Business Reports and produced in cooperation with MINING.com. Visit Global Business Reports for more information.
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