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Results: 1 - 15 of 21
View Paul Lefebvre Profile
Lib. (ON)
View Paul Lefebvre Profile
2021-05-07 14:33
Thank you, Mr. Chair.
My thanks to all the witnesses for joining us today.
Again we have another really good panel of witnesses, just to show us the ingenuity in Canada, as we are tackling climate change and looking at economic opportunities, which this represents. I really want to thank all of the witnesses who are here today for the work you do.
Actually, I'll ask Bob a question.
How are you?
It's good to see you.
We've heard a lot about food versus fuel, which I find very interesting. At the same time, though, we talk about supply and demand, because that obviously drives the economy. As I say, we're looking at this as an economic opportunity. It's a necessity. At the same time we're looking at how we reduce our greenhouse gas emissions.
Your members are obviously among some of the largest fuel producers in Canada. How do they see this economic opportunity and their role in reducing greenhouse gas emissions at the same time?
Bob Larocque
View Bob Larocque Profile
Bob Larocque
2021-05-07 14:34
Thank you very much, Paul.
To put it in perspective, for the clean fuel regulation, that's B10, if you wish, or bio-based 10% and ethanol at 15%, we need billions of litres in Canada by 2030—anywhere from six billion to 10 billion. We will send a brief to the committee about those numbers of litres versus percentage and cost that we talked about. We are taking this very seriously. We're looking at every single option.
Hydrogen is also an option for us. Electrification is another one, with charging stations in our sites. We're also looking at coprocessing, which is actually putting crude right into a refinery. That's something that we haven't talked about yet, but there's a facility in Burnaby, B.C., right now doing this. They want to double it. Tidewater is also talking about that in their investments.
This is significant, and billions of dollars are going to be invested. We already saw $1 billion go into two facilities in the last three months, and we'll see a lot more.
View Paul Lefebvre Profile
Lib. (ON)
View Paul Lefebvre Profile
2021-05-07 14:35
That means that the businesses are seeing a big opportunity to do this.
View Jeremy Patzer Profile
CPC (SK)
With the coal phase-out that's happening because of this government, it's obviously good to see the jobs that you're going to be making here and producing here. What's the opportunity to expand in this and to make this an even larger-scale operation than what you have right now?
Josh Gustafson
View Josh Gustafson Profile
Josh Gustafson
2021-05-07 14:43
We would be foolish not to take into consideration the ability to increase and to move alongside the market as it grows. Obviously it's a little bit more risky since it is just coming in. The CFS hasn't even been fully rolled out yet. We have plans to look at increasing in size to adapt to different feedstocks and to look at production and marketability for everything from Canadian fuel producers and suppliers to a home for it in the U.S. right down to the export market.
We haven't even talked about the spinoff effects for all the other industries that are going to be affected, like the processors, the logistics and shipping industry, and farmers. There are going to be widespread impacts.
Robert Fung
View Robert Fung Profile
Robert Fung
2021-03-12 13:20
Chair, committee members, panellists, good afternoon.
Let me begin by emphasizing that there's an opportunity for Canadian leadership in this vital strategic sector that we cannot afford to miss. I will focus on three topics: first, the opportunity to build a critical new industry in Canada; second, I will use the Torngat rare earth project in northern Quebec, which I chair, as an example of Canada's opportunity to be a global leader of an industry vital to the low-carbon economy; and third, the important actions that the government can take to realize this opportunity for Canada.
Rare earths are critical to enable the world to transition to a low-carbon economy. They are a group of 17 elements which are critical raw materials because of their technologically advanced and strategic end uses. They are used in lasers, medical scanners, emission-reducing catalysts, fibre optic telecommunications, ceramic capacitors—literally any technologically advanced piece of equipment. However, the most important use to get to a low-carbon economy is to manufacture permanent magnets for electric motors, wind turbine generators and even for the speakers in our smart phones. They are needed everywhere.
Electric vehicles use permanent magnet motors because of their higher efficiency and smaller size and weight. When Canadian auto manufacturers, in fact, all global manufacturers, commit to electrifying their vehicle platforms, they are creating an enormous demand for specific rare earth elements. Canada has the opportunity to develop our own secure supply of rare earths to support Canada's, the United States', and the world's demand for electric vehicles and to do so in an environmentally sustainable fashion.
Today, China supplies in excess of 80% of world demand. We all know that is not a geopolitically acceptable situation.
Torngat Metals is a Canadian-owned company, developing one of the world's largest rare earth ore bodies with the best mix of the particular rare earths needed to make permanent magnets. Torngat's deposits are located in northern Quebec, about 240 kilometres northeast of Schefferville. It is Torngat's strategy to prioritize environmental sustainability throughout all of its operations and emphasize consultation and collaboration with indigenous governments and communities on all aspects of the project.
The rock containing rare earths will be mined in a totally environmentally sustainable manner using wind power as much as possible and using the Lockheed Martin hybrid airships to transport the rare earth concentrate to Schefferville, then by rail to Sept-Îles and to the processing plant in the Bécancour industrial park between Montreal and Quebec City.
Producing the separated rare earth oxides is where the value is created, and Torngat is collaborating with world-leading technology partners to assemble the expertise needed to produce these specialty chemicals and to grow this expertise and related R and D in Canada. Torngat targets to produce cost-competitive separated rare earths in Quebec in 2025-26.
Rare earth projects such as Torngat's need support to get into production to meet Canada's needs and the industrialized world's needs, so let me offer four recommendations for Canada:
First, set a near-term deadline for NRCan and ISED to complete and publish their critical metals and rare earths strategy. Second, increase federal government efforts to collaborate with Europe, the U.S. and Japan on building new supply chains outside of China. Third, expand the criteria with existing NRCan and ISED programs to enable rare earth projects to qualify and apply for funding. Fourth, provide funding assistance for development projects to bridge the gap between early-stage development and construction financing.
These initiatives would make an enormous impact for these projects to get into production more quickly.
When I read a report of the Government of Australia's commitment to hardwire themselves into the global supply chain using access to their $1.3-billion modern manufacturing fund, and we, in Canada, have the natural resource, are an education nation with highly skilled labour and sit next to the world's largest economic and industrialized country, I can only implore Canada to step up. We cannot afford to miss this opportunity for our country and for our allies.
Thank you, sir.
Juan Merlini
View Juan Merlini Profile
Juan Merlini
2021-03-12 13:25
Mr. Chair, thanks. I will start, and then I'll pass to Nancy.
Members of the committee, good afternoon. It's a pleasure to appear before you today and have the opportunity to address the important topic of how Canada can position itself as a key supplier and enabler of critical minerals with the global low-carbon transformation that is under way.
My name is Juan Merlini. I oversee the sales and marketing function for Vale's base metals globally. I am joined by my colleague Nancy Concepcion, who leads our marketing and research teams for the base metals business line.
Before we begin, we would like to acknowledge that we are presenting to you today from the traditional lands of the Anishinabe, Haudenosaunee, Huron-Wendat and Mississaugas of the Credit territories. Vale would also like to acknowledge the indigenous peoples whose lands we operate on in Manitoba, Ontario and Newfoundland and Labrador.
Vale is one of the world's largest integrated mining companies with global headquarters in Rio de Janeiro, Brazil, and a market cap of approximately $90 billion.
Our global base metals business has a rich 119-year history. It is headquartered in Toronto and has operations across five continents. We are present in Newfoundland and Labrador, Ontario and Manitoba. As one of the largest producers of high-quality nickel and an important producer of copper and responsibly sourced cobalt, we produce the metals that are critical to building a cleaner and greener future.
Our operations in Canada provide employment to over 12,500 Canadians. Our direct and indirect GDP contributions to the Canadian economy over the past decade have totalled $43.7 billion Canadian, which includes $12.7 billion in capital investments.
Vale Canada produces 97,000 tonnes of nickel, representing 51% of the country's nickel output. Vale Canada produces over 125,000 tonnes of copper, representing 23% of the country's copper output. Regarding other key minerals for the low-carbon economy, Vale Canada also produces over 2,000 tonnes of cobalt as well as platinum and palladium.
Vale shares the government's determination to decarbonize the Canadian economy and create a greener and healthier future for Canadians. We have set ambitious decarbonization goals for all Vale's businesses across the world. By 2030, our plan is to achieve a 33% reduction in GHG emissions, and by 2050, carbon neutrality. Our company has announced $2 billion to meet these ambitious goals, and we are already under way in defining projects to get us to this target.
These efforts have involved, and will involve, far-reaching changes. I'd like to highlight that Vale in Ontario has already spent $1.5 billion to clean the air we breathe. Our clean AER, atmospheric emissions reduction, project, was the single largest environmental investment in the history of Greater Sudbury and resulted in an 85% reduction in sulphur dioxide, a 40% reduction in metals particulate and a 40% reduction in greenhouse gas from our Copper Cliff smelter complex. Looking at the present and to the future, we are focusing our efforts on electrifying our fleet, switching our fuels from diesel to biofuels and exploring the feasibility of storing carbon in tailings.
Our GHG agenda is only one part of Vale base metals' broader effort to advance the environmental, social and governance performance of our company and our industry. Given the issues around critical minerals in other parts of the world, we believe the Canadian mining sector has a special responsibility to set the standard in building positive relationships with local communities and delivering benefits to indigenous partners and other stakeholders where we do business.
As we look to the future, we believe that Vale is well positioned to contribute to the development of the electric vehicle industry. Here in Canada, we produce three key base metals: nickel, cobalt and copper. All of them are important components of the EV supply chain, but meeting Canada's aspirations to be a player in this market will involve addressing some important issues.
Meeting the rising demand will be a challenge, particularly for copper and nickel.
We also need to develop strategic long-term relationships in key spaces, such as EVs, and this includes partnerships with leading academics, institutions, customers and OEM producers that support long-term and significant investment. These innovation and supply chain ecosystems are essential.
Coordination among government levels will also be very important, as the supply chain will need federal, provincial and local coordination to ensure that we can respond to this generational opportunity as efficiently and cohesively as possible.
Bringing new nickel, copper or cobalt deposits online is capital intensive and takes a considerable amount of time. Even in the most stable and favourable mining investment jurisdictions like Canada, it still takes at least seven to 10 years from the discovery of a viable deposit until you have commercial production
All of these highlight the need to have the greatest amount of policy certainty, permitting support, coordination and commitment from government, which are essential for success. Lack of attention with regard to the upstream and the necessary investment in the upstream aspects of the supply chain and related processing development will constrain the development of the EV supply chain in Canada.
We see industry, downstream manufacturers and all levels of government as partners, and in order for a North American supply chain to be developed and remain robust, we will all need to work together to make this happen.
I'll pass it over to my colleague Nancy to highlight the landscape for EVs.
Liz Lappin
View Liz Lappin Profile
Liz Lappin
2021-02-22 11:14
Good morning. My name is Liz Lappin, and I am the president of the Battery Metals Association of Canada, or BMAC for short. In addition to BMAC, I also work for E3 Metals Corp., just recently mentioned by Mr. Bubar. We're working to develop a first-of-its-kind lithium project in Alberta. Thank you for the opportunity to present today.
Development of the battery metals sector, from mines to mobility, is essential to support the continued expansion and adoption of clean tech as the world transitions to a low-carbon future. Relative to the EU and Asia, the Canadian battery metals supply chains are currently in their infancy. However, with surging demand for battery metals to feed the expanding EV supply chain, the market opportunity for Canada is growing.
BMAC was formed to help develop the united industry voice. Through a collaborative approach, we're working to connect, align and advance the industry so that it can meet its full potential for Canada. Our community is predominantly based in western Canada; however, our vision is pan-Canadian.
This brief is divided into three sections that outline recommendations for the sector.
The first area of focus is support for critical minerals project development. The World Bank and a host of forecasters anticipate greatly increased global demand for critical minerals in the years ahead. While Canada has an abundance of resources, they have been slow to develop due to a variety of challenges. Examples include high volatility in emerging pricing, competition for capital against established critical minerals jurisdictions, the highly complex nature of battery metals production, and delays in regulatory and policy development. Canada needs to move swiftly to support the needs of its domestic economy.
To support critical minerals development, BMAC recommends financial support for qualified domestic battery metals companies that are capable of demonstrating viable prospective projects; promoting exploration and identification of resources by amending the Income Tax Act to ensure that lithium brine resources are eligible for flow-through shares; encouraging provinces to rapidly develop responsible yet industry-friendly mineral policy and regulations to accelerate critical mineral resource development; and promoting streamlined tenure and regulatory frameworks to incentivize responsible development. Finally, we recommend prioritizing innovation funding for industry cluster applications, which would incent Canadian collaborations and strengthen connections along the supply chain.
Our second area of focus is investing in value-added manufacturing. To avoid simply being an exporter of raw materials, Canada needs to further develop its domestic value-added industries across the country. Developing a complete, made-in-Canada, end-to-end, coast-to-coast supply chain is key to ensuring that Canadians have access to the resources and products they need, including batteries for electric vehicles and energy storage. To do this, we recommend prioritizing investment in the battery component and cell manufacturing sector as part of Canada's “build back better” strategy, developing policy and financial incentives to support Canadian industry and government to buy local, and, finally, harnessing the purchasing power of government, public institutions and publicly owned businesses to provide scale.
Our third and final focus area is developing a cohesive strategy. To borrow an analogy from the arts, it is commonly said that in order to play a symphony, you need an orchestra. Today what I hear are a variety of notes of music or even sometimes a few lines of music strung together. If the entire orchestra—including government, industry, academia and stakeholders—can all get organized behind a conductor, or essentially an overarching strategy, we could play some pretty incredible music. A symphony, like art, can be transformational, and a successful build-out of this industry in Canada can also be transformational, but only if we can all get behind that strategy, acting as a system rather than as individual actors or musicians just playing our own parts.
Canada is on the cusp of a rare, once-in-a-generation opportunity to develop its critical mineral industry and compete in this major new market. The global pandemic, in particular, has laid bare the shortcomings in Canada's ability to produce critical goods needed for our country. We do not wish to face similar circumstances in the resources, components or products that will deliver a greener future to Canadians. While it's true that Canada has fallen behind in this respect, it can still catch up, particularly as the sector continues to evolve to meet Canada's own needs.
BMAC believes that by acting swiftly, together, efficiently and responsibly, we will realize the abundant opportunities before us.
Thank you.
View Patrick Weiler Profile
Lib. (BC)
Thank you, Mr. Chair, and thanks to the witnesses for joining us today for some very interesting discussions.
My first question is for Mr. Bubar. You mentioned that you have a number of exploration projects for a number of rare earth elements. You mentioned that demonstration projects funded by the government on different topics would help with this. What is needed to bring these projects into production, beyond simply going through the regulatory process?
Donald Bubar
View Donald Bubar Profile
Donald Bubar
2021-02-22 12:36
As I mentioned earlier, the Saskatchewan Research Council has created a very positive precedent there for a modest-scale demonstration plant to process rare earth minerals and also a facility to do the separation part of the processing required to make the individual rare earth oxides. That's where a lot of the costs and challenges are for aspiring new producers.
Getting that started is actually helping us with our project in the Northwest Territories, where we have an Australian company now as a partner. They are now working directly with the Saskatchewan Research Council on getting that started. Once we do, then we see the potential there to grow production over time as we get the market established and can expand production capacity. That's the way you have to look at these things.
View Patrick Weiler Profile
Lib. (BC)
Just as a follow-up to that, apart from China, what other countries are doing this effectively right now, and what can we learn from them?
Donald Bubar
View Donald Bubar Profile
Donald Bubar
2021-02-22 12:37
Not many. China has been way ahead of us on this all along, recognizing that they have to build out the downstream to justify the development of the upstream side. It looks like the EU is now starting to really take the reins on it over there, from what Simon was saying earlier and from what I've been witnessing.
Pierre Gratton
View Pierre Gratton Profile
Pierre Gratton
2021-02-19 14:44
Mr. Chair, members of the committee, and fellow witnesses, I am Pierre Gratton, President and CEO of the Mining Association of Canada (MAC). I’m accompanied by Brendan Marshall, Vice President of Economic and Northern Affairs.
Thank you for the opportunity to discuss the important matter of critical minerals with you today.
Increasing geopolitical uncertainty has focused attention on the precariousness of existing supply sources for many primary materials, including critical minerals classified by Canada's allies as the primary materials on which their economies and national security depend.
An increasingly uncomfortable reliance upon China for many of these commodities has led Europe, the U.S., Canada, Australia and other allies to come together to develop strategies and policy instruments to lessen this dependence.
Within Canada, there is a growing desire to source and procure locally, where possible, especially when doing so achieves better environmental and health outcomes. Recent polling data finds that almost 90% of those surveyed liked the idea of Canada being a preferred global source of critical minerals and would like to see government take a number of steps to support this approach.
The environmental, social and corporate governance leadership of mining companies operating in Canada, boosted by MAC's unique and increasingly globally recognized “Towards sustainable mining” initiative, reinforces confidence that when it comes to world-leading sustainable mining practices, Canadian mining is a leader.
The government has recognized that a resilient Canadian mining and metal manufacturing sector is essential to the 2030 climate plan's goal of establishing a domestic battery electric vehicle manufacturing supply chain. If a prosperous transition economy in Canada is contingent on the establishment of a domestic BEV supply chain, then strategic critical mineral investments are essential.
How do we make it happen? We propose two types of investments: first, programs that de-risk investments currently subject to China's market dominance, thus enabling current gaps in critical and BEV supply chains to be filled domestically in Canada; and second, investments that strengthen and enhance Canada's current levels of critical and BEV mineral and metal production.
For decades, China has held monopoly-like control over critical minerals production and distribution, rendering the rest of the world reliant on procurement and creating a level of risk that deters investors from entering these markets.
For example, who would invest in a rare earth mine with no access to a downstream facility to create value-added rare earth products? Who would invest in a value-added manufacturing facility when there is no upstream mine to source from? What advanced manufacturer would set up shop where they didn't have access to the materials they need to produce their end products—BEVs, high tech, medical or otherwise? The answer is no one, at least not without strategic government support that prioritizes economic security and autonomy enough to enable companies that play by the rules to thrive.
To address these challenges, we propose the establishment of a five-year, $250-million program to de-risk projects across the critical minerals supply chain using a two-tier approach: first, advancing pilot and demonstration projects; and second, scaling the successful ones to a level where operational independence is achieved.
Beyond plugging current supply chain gaps, government must also not compromise existing supply, with the impact of carbon pricing on remote mines being the top concern. Off-grid remote mines are virtually exclusively reliant on diesel fuel for power and haul-fleet operations for the time being. With very limited and currently uneconomic options to displace diesel, the competitiveness and longevity of these operations under the proposed clean fuel regulations and the projected $170 per tonne carbon price will erode.
Why does it matter, in the context of critical minerals? In 2018, for which we have data, 52% of nickel and 62% of cobalt shipped in Canada came from off-grid mines. Today, most EV batteries use cathodes with 60% nickel and 20% cobalt. Unless we get climate policy right, a Canadian critical minerals value chain will not materialize. Even if we plug rare earth supply chain gaps, we cannot compromise our ability to produce the materials that make up 80% of the input into batteries.
To this end, we seek your support for an industrial off-grid clean electrification fund.
COVID-19 has put into sharp focus what happens when we let industries slip away, leaving us at the mercy of global supply chains that, in times of crisis, can fail. Let's seize the tremendous opportunities before us to expand and strengthen our economic future.
Thank you very much.
Lisa McDonald
View Lisa McDonald Profile
Lisa McDonald
2021-02-19 14:49
It will be me.
The Chair: Excellent.
Ms. Lisa McDonald: Good afternoon, Chair and committee members. I'm Lisa McDonald, executive director of the Prospectors and Developers Association of Canada. I thank you for the opportunity to speak to the committee today.
As the leading voice of the mineral exploration and development sector in Canada, PDAC represents more than 7,200 members. Our work focuses on fostering a responsible and competitive mineral industry. Mineral exploration and mining form a cornerstone of our economy, employing over 700,000 Canadians and contributing in excess of $100 billion to our GDP in 2020. It is the largest private sector industrial employer of indigenous people on a proportional basis in Canada, and a key partner of indigenous businesses from coast to coast to coast.
Discovery of new deposits is an essential part of the mineral industry value chain. Over the last decade, more than $15 billion has been spent by companies exploring for minerals and metals in Canada. Mineral exploration is a significant economic driver in many northern and remote parts of the country through employment, procurement of services and providing development opportunities for the future. This sector is uniquely positioned to play a key role in reigniting critical parts of Canada's economy as we look beyond the COVID-19 pandemic.
The pandemic has reminded us of the resiliency of our mineral industry, as many companies were able to quickly adapt to find ways to safely operate. It has also reminded us of the value of infrastructure, and how northern and remote regions in Canada suffer from a deficit in transportation and telecommunications links. In fact, Natural Resources Canada estimates that mineral exploration in our three territories dropped by 50% in 2020 versus the year prior, whereas spending in Ontario and Quebec actually increased over the same period.
To ensure that all of Canada can recover from this pandemic, governments must focus on fiscal and regulatory frameworks that support the competitiveness of our mineral industry and development of the infrastructure needed to build back stronger. If something is not grown, it is either recycled or mined. The things that Canadians rely on each day, the inputs of modern society, come directly from the mineral industry. Our industry expertise, vast resources and potential for further discoveries mean that Canada is well positioned to become the global supplier of choice for the clean technology and renewable energy sectors, and lead our transition towards a low-carbon future.
However, mineral exploration is a complex process with low odds of success. Only about one in 10,000 mineral claims reach an advanced exploration stage, and just one in 1,000 advanced-stage projects become mines. Junior exploration companies do the bulk of this high-risk capital-intensive work, and account for upwards of 70% of all mineral discoveries made in Canada. However, new discoveries in Canada are in decline, with grassroots exploration down by roughly 75% over the last decade.
To become the global supplier of choice, Canada must encourage more investment in grassroots exploration and the search for new critical mineral deposits. To do so, we recommend that the government work with industry to improve the effectiveness of the flow-through share incentive and increase the mineral exploration tax credit from 15% to 30% in each province and from 15% to 40% in each territory, as these two mechanisms combine to generate roughly two-thirds of all funds raised for exploration in Canada.
The government also plays a critical role by facilitating public geoscience. Research by Ernst & Young in 2019 showed that every dollar in public geoscience spending by the government in recent programs has generated more than seven times that in overall economic benefit to Canada. PDAC recommends that the federal government take advantage of this value proposition by creating a new funding mechanism to support comprehensive provincial and territorial mineral resource assessments, based on geoscientific evidence, to identify and incorporate critical mineral potential into infrastructure, land management and conservation decision-making.
Thank you for your time today.
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