GMS: Mining veteran Doug Silver on the ‘massive role’ of Canadians in global mining

Canadians may be a modest bunch, but when it comes to our importance in the global mining industry, we could stand to brag a little. 

At The Northern Miner’s Q3 Global Mining Symposium in late September, Douglas Silver presented data showing Canada leads the world in exploration spending (US$800 million per year vs. US$530 million for runner-up Australia); in capital spending on mining (accounting for 35% of the total compared to 13% for Australia); and the number of listed mineral companies (more than 1,400 compared with 661 for Australia). 

The figures all show the “massive role” Canadians play in global mining, said Silver, a U.S.-based geologist and executive who founded the Denver Gold Group. “They overshadow all the other nationalities when it comes to capital spending.” 

Silver noted that Canada’s TMX Group, which operates three of the country’s five stock exchanges, and regulators such as the Ontario Securities Commission have a lot to do with our strength in mining. 

“In the corporate world, money is the food that allows companies to operate and grow. And having had the privilege of interacting with both of these groups, I can say with great conviction that their corporate cultures are one of helping and not hindering. Their rules have been tested by time and make sense — and I can’t say that about some of the other exchanges, particularly ones near my home.” 

The result, said Silver, is that combined, the companies listed on the TSX and TSX Venture Exchange have grown more than 160% in cumulative listed market capitalization over the last 10 years – despite market downturns and the Covid-19 pandemic. 

“The TSX and Venture exchanges complete more than 1,300 financings each year for mineral companies and this leads to literally billions of dollars in capital raised, which is what we need to go and discover, develop and operate mines,” said the 40-year mining veteran.  

Silver, who started his career as an exploration geologist, has also been an executive in mining royalty and private equity firms, including Red Kite Management and its spinout company Orion Resource Partners – both major players in mine finance. Silver also founded the Denver Gold Group, and was inducted into the U.S. National Mining Hall of Fame in 2018. 

Globally, Canadian companies own more than 6,100 projects in 97 countries, with the vast majority of these projects located in North America. 

Through their leadership in global mineral activity, Canadian companies have also become leaders in creating global mining standards, Silver said. 

“When Canadian companies operate in foreign jurisdictions, they also take these standards with them and share them. And this elevates the world in mining practices, which is, with the current emphasis on ESG, very, very important.” 

Threat to Canadian mining 

During a Q&A session, moderator and Northern Miner Group president Anthony Vaccaro asked Silver what he believes is the biggest threat to Canada’s dominance of the mining sector. 

“I think the biggest threat to Canadian mining is the internet,” he replied. “Because what it allows is people that are anti-mining have an easier way to get together and fundraise.” 

Silver is currently studying the root causes behind the surge in opposition to mining projects — which is coming at the same time as the EV transition, and global electrification requires more metals. 

“It sounds like a great idea,” he said of global electrification. “But there’s simply not enough deposits in the world and permitting is taking longer and longer to put them into production. 

Governments of the world are “absolutely ignorant” on the whole subject of copper, Silver said.  

“Take Resolution or Rosemont (both copper projects) in Arizona where they’re pushing 20 years since they started permitting. The governments can’t have it both ways. They can’t demand that we develop more copper mines, and then not allow us to develop them. 

“So this supply delay will continue. And as long as the anti-mining forces have the microphone, they will continue to delay, stall, cheat whatever it takes to prevent new mines from being built.”  

Both governments and the public have important choices to make, he noted. 

“Governments are going to have to decide whether they want to serve the people and upgrade their infrastructure, or whether they want to simply sit on social issues, and not have these privileges.” 

Silver added: “I think the world has to decide what that balance is, between what society needs to evolve and be more innovative, and how we get those metals.” 

Ultimately, Silver said that project delays will just mean higher prices. “If the demand is higher than the supply, the price is going up. So what a wonderful time to be 40 years old and having a big career in the mining business!”