Ottawa has unveiled a selection of expedited “nation-building” initiatives, including the advancement of two copper mines to secure a crucial natural resource amidst rising global demand and supply constraints. Prime Minister Mark Carney emphasized that such projects should enhance Canada’s self-sufficiency, resilience, and security while delivering tangible benefits to Canadians.
Copper, the world’s third most utilized metal crucial in electrical applications, is at the forefront of these endeavors. The federal government is backing the regulatory approval for the McIlvenna Bay Foran Copper Mine Project in Saskatchewan and the expansion of the Red Chris Mine in northwestern British Columbia to cater to the escalating demand for this essential mineral, driven by the surge in data center development supporting artificial intelligence technologies.
Vince Beiser, the author of “Power Metal: The Race for the Resources That Will Shape the Future,” highlighted Canada’s significance as a major mining powerhouse with copper being a cornerstone natural resource of the 21st century, essential for powering electric vehicles and green energy solutions.
Despite Canada’s existing infrastructure comprising copper mines, refineries, and a smelter, the country has lagged in copper production and exports in recent years, raising concerns among experts that even with accelerated initiatives, catching up might be a challenge.
Copper’s global dynamics have been influenced by the U.S.-China trade tensions, with prices on an upward trajectory in recent years. The threat of tariffs on raw copper by the Trump administration earlier this summer underscored the vulnerability of the market, prompting a 50 percent levy on semi-finished copper products. This move spared countries like Canada but impacted Chinese refiners significantly.
Natural Resources Minister Tim Hodgson emphasized Canada’s democratic role in copper production, accusing Beijing of manipulating copper prices and advocating for Canada to bolster its position in the copper market.
While China dominates rare-earth minerals, its hold on the copper sector is less pronounced, creating an opportunity for Canada to assert itself in this realm. However, Canada’s share in global copper production is relatively modest, accounting for only two percent, with significant growth potential lying outside the country.
Canadian mining companies are increasingly prioritizing copper over other commodities, with Barrick Mining transitioning towards a copper-focused portfolio by divesting its gold assets. The proposed acquisition of Teck Resources by Anglo American for its copper operations signals a major consolidation in the mining sector, highlighting the scarcity of viable projects in the copper industry.
The decline in copper production in Canada over the past few decades has been concerning, prompting industry stakeholders to view the current projects as a step towards reversing this trend and reclaiming Canada’s position in the global copper market.
While Canada aims to increase its share in global copper production over the next two decades, the delayed start in planning and executing projects could pose challenges in meeting the anticipated demand. The prolonged process of exploration, validation, economic justification, and operationalization underscores the time-sensitive nature of addressing the growing demand for copper.
