Ukraine war crisis offers Canada an opportunity to lead with responsible mining 

Russia’s invasion of Ukraine has shone a spotlight on energy security throughout Europe and the Americas. World leaders are finally paying attention to their reliance on Russia for energy and critical minerals, and they don’t like what they see. 

Sanctions against Russia should continue and depending on how long and drawn out the invasion is, they may heighten. To date, Russian gold has been targeted but critical minerals have not. It’s obvious why: Russian metals are “critical,” and their supply cannot be easily replaced. The world is looking to Canada to displace this supply, but we aren’t ready. 

Russia is the world’s number one exporter of oil and gas and the largest single provider of oil, gas, and coal to Europe. With a cold winter ahead, European countries may need to start choosing between running factories to keep the economy going, or warming homes. Further, Russia produces just 6% of the world’s uranium, yet claims over 40% of enrichment capacity. Russia is also the number one producer of battery-grade Class 1 nickel and palladium which is used in catalytic converters for cars. Need I go on? 

One thing is clear. The world is far too dependent upon Russia for oil, gas, and mineral supplies. Now is the time for Canadian miners to mobilize. 

The industry is facing an unprecedented demand opportunity not seen in decades since China began its mass scale development. Policy makers are beginning to understand that climate change solutions will require vast additional quantities of metals and it is encouraging that many are discussing critical minerals. With the transition to battery technologies and clean energy, demand for nickel, lithium, and cobalt are each projected by the International Energy Agency to more than double by 2030 from 2021 levels. Copper demand is expected to rise by over 50%. To put this into context given where we are today, just to meet this increase in demand, the industry will need to develop new mines capable of more than doubling nickel and cobalt production. We will need to increase copper production by more than half and lithium production eightfold. All within eight years in a scenario where net zero targets are achieved by 2050, not accounting for the replacement of current reserves as they are mined out, or the displacement of Russian resources. 

As we know, it is not uncommon for it to take 18 years for a new exploration discovery to be defined, engineered, evaluated for economic viability, financed, permitted, and constructed. It’s safe to say, with a timeframe of 10-20 years from discovery to production, that we should be out exploring. . . like now. To attract the required capital, the government must set the tone for success and help reduce regulatory and permitting delays. Now is the time for our industry to ensure that Canadian domestic policy will foster the necessary investment to meet the global demand growth required from our international climate pledges, with the federal government seeking input into its critical minerals strategy now through Sept. 15, 2022. 

The mining sector must begin a massive growth phase so that we can lower our dependence on fossil fuels and meet the lofty net zero targets by 2050. Our industry, governments, and the communities in which we operate need a call to action to ensure that the industry players who benefit from this monumental and seismic opportunity are those that have sustainability, safety, human rights, and environmental protection within their DNA and corporate missions. In other words: us. Our Canadian miners and Canadian companies operating abroad. 

It’s time for our industry to initiate a robust outreach campaign to our friends, family, colleagues, and everyone who will listen. We have been quiet for too long, not boasting of our capabilities and quietly lamenting the challenges we face in private. But the world needs us now, perhaps more than ever, so we must get loud about what we need in return. We need to work closely with our governments. We need significant new strategic metals and resources to be discovered here in Canada and policies designed to expedite their exploration and development. And we need public support.  

My ask of you is simple. Mining executives and board members, geologists and engineers, rock truck operators, diamond drillers, and service providers — proudly tell your neighbours, friends, and elected officials that you work in mining and that the world needs Canada’s resources. Ensure that our children learn in school about Canada’s rich endowment of resources and that the industry has learned from its past mistakes, becoming a leader in global ESG and supporting the United Nation’s Sustainable Development Goals. Loudly promote the change in public perception that we desperately need so that Canada will emerge a global leader once again in sustainable mining, innovation, and technical expertise. It’s our time.

Candace MacGibbon is a Canadian mining executive and former CEO of INV Metals.