Ottawa wants to shorten mine approval times by a third  

Canada is aiming to cut four to five years off the time it takes for mining project approval, mainly by syncing federal and provincial requirements, Natural Resources Minister Jonathan Wilkinson says.  

With Canadian mines taking 12 to 15 years on average from discovery to commissioning, Wilkinson said he was open to trimming the review process by a third during an interview in Toronto with The Northern Miner as PDAC wound down on Wednesday.   

“That would be a good objective,” the minister said. “I was just meeting with officials from Australia, we were talking about regulatory process. They have mines they are permitting in four years and yet they are very strongly focused on environmental and Indigenous issues. I’m not saying we can necessarily get there, but we should be striving to actually be as efficient as we possibly can.”   

Canada is among Western countries trying to ramp up mining output to meet rising demand for metals used in electric vehicle batteries instead of relying on China. The Asian power refines 40% of the globe’s copper, 59% of lithium, 68% of nickel and 73% of cobalt, according to the Washington-based Brookings Institution. But many countries are targeting net-zero emissions for dates long before they will have approved the mines needed to achieve their climate change-fighting goals.  

Wilkinson mentioned that a Foran Mining (TSXV: FOM; US-OTCQX: FMCXF) project in Saskatchewan is a contender for federal construction funding, just as the United States government is helping with Lithium Americas’ (TSX: LAC; NYSE: LAC) US$4 billion Thacker Pass lithium project in Nevada.  

He said he may have news next month on shortening British Columbia project reviews, and that Ontario must consider if developing its Ring of Fire region is going to save more carbon with green metals than will be released by building new roads and mining in muskeg swamps.  

Investment screening

Canada’s foreign investment rules will continue to scrutinize state-owned enterprises involved in critical minerals and order divestments even if the actual development isn’t in Canada, he said. China’s Zangge Mining was forced to divest a 65% stake in Ultra Lithium’s (TSXV: ULT) Laguna Verde lithium project in Argentina.  

“Both we and in many Western countries that are working hard to ensure access to critical minerals, to ensure that we can successfully manage through the energy transition, want to ensure that that access is broader than just Canada and the United States.”  

Foran is developing its McIlvenna Bay copper project in east-central Saskatchewan with its Bigstone copper-zinc project nearby and a centralized mill in a carbon-neutral development by using electric vehicles and hydro-electric power.  

“I was just actually meeting with the minister from Saskatchewan,” Wilkinson said. “That project from their perspective would be a priority, and from our perspective, we’re interested in what the provinces are interested in doing.”  

The ministry hasn’t allocated the almost-$3.8 billion in last year’s budget that included $1.5 billion for infrastructure, roads and power lines, the same amount for projects as well as money for research and development such as geoscience. 

Peat carbon 

“I anticipate us being able to open up for applications for infrastructure money quite soon and the same thing is going to be true of the projects so that money will start to be dispersed,” he said. “I would hope we will also see some other measures in the budget that will focus on accelerating the work in the minerals area and minerals processing area. But that of course is the purview of the minister of finance.”

In Ontario, the Ring of Fire region in the far north is advancing environmental assessments for roads that some internal government memos estimate will cost more than $2 billion to build. Environmental critics and some Indigenous groups say it will unlock the swampy area’s natural storage of carbon in peat, defeating the whole purpose of mining for green metals. Wilkinson said he was meeting with Ontario Mines Minister George Pirie on Wednesday.  

“We’re going to have that conversation about how do you move forward in a way that respects the rights of Indigenous communities in the area, and there are many, but also that is sensitive from an environmental perspective,” he said. “I’m very concerned about the peat. It’s got to be addressed.”  

Minister Wilkinson, who’s represented the riding of North Vancouver since 2015, said Canada was approached for industry help at a ministerial level meeting this week because it is a global leader in exploration, development and stewardship in more than 100 countries.  

“A number of the African countries were asking, is there a way that Canada could actually help to develop a toolbox around how do you actually develop a regulatory process, how do you think about water issues, how do you deal with tailings.”  

Canada allocated $70 million for international collaboration after it joined the new Sustainable Critical Minerals Alliance last year. It grouped together the U.S., the United Kingdom, Australia, France, Germany and Japan to help each other on projects.   

Wilkinson said he was impressed with the enthusiasm at this year’s PDAC.  

“There is a real sense of optimism about the sector and its prospects,” he said. “That’s good for Canada. I keep saying everywhere I go this whole critical minerals area in particular is a generational economic opportunity.”