Backed by its recent actions in the critical minerals space, the Quebec government laid out a strong case for why mineral exploration and mining development in the francophone province is a good idea during The Northern Miner’s recent Q2 Global Mining Symposium.
A panel of three government representatives, headlined by Nathalie Camden, Associate Deputy Minister of Mines, Energy and Natural Resources pledged a desire to work with proponents towards reaching favourable development decisions.
The Quebec government has been proactive in positioning the economy to benefit from the energy transition. In October 2020, it was the first jurisdiction in Canada to launch a critical minerals action plan.
“The plan sets clear priorities, and it covers all aspects from exploration to recycling. So far, it has generated great interest internationally, being commercial — with promoters and investors — and with different government officials,” Camden said.
The minister also noted that Quebec is emerging as a lithium powerhouse, holding the largest lithium reserves in Canada and nearly half of the lithium projects currently underway.
“And we also have rare earths deposits. We are one of the few jurisdictions globally with all the minerals required for batteries, namely lithium, nickel, cobalt, graphite, and manganese. And in addition, we have many aluminum smelters. So we have the potential to develop 38 of the 50 critical minerals that appear on the new February American list.
“We can work closely and rapidly with promoters and other stakeholders. We certainly have a good ESG report as a reliable, sustainable and ethical partner. We have a plan. We have the resources needed. We have the political will and all the tools to position ourselves as a leader in developing critical minerals by helping companies and governments realize their projects or meet their concerns to secure their supply,” said the minister. “We are open for business in Quebec.”
View of the open pit Canadian Malartic mine, in Quebec. Credit: Adobe Stock.
Camden pointed out Quebec ranked the sixth most attractive mineral jurisdiction globally, according to the Fraser Institute’s most recent Mining Survey, released in April.
The province currently has 22 mines in operation, three in care and maintenance and 33 mining projects. Some are driven forward by major players such as Rio Tinto (NYSE: RIO; LSE: RIO), Glencore (LSE: GLEN), ArcelorMittal, Newmont (TSX: NGT; NYSE: NEM), Agnico Eagle Mines (TSX: AEM; NYSE: AEM), and BHP (NYSE: BHP; LSE: BHP).
“Quebec offers a business environment that is stable and favourable to investments,” said Camden.
The Quebec government has introduced various tax benefits and incentives tailored to mining exploration, production and manufacturing companies.
“In Quebec, we want to assist companies at all stages in developing their mining project to reduce delays and share the risk,” Camden said.
As part of its initiative, the provincial government has developed a program to support companies that conduct mining exploration activities related to critical minerals.
The minister also touted the province’s ample low-cost, renewable hydroelectricity supplies, with possible special rates available for the industrial sector.
Camden underlined that Quebec generally has well-developed infrastructure, with firm plans to develop roads and power lines into the far-northern areas.
“Social acceptability and responsible development are paramount in Quebec,” Camden said. “Our government has developed different approaches and tools to promote the establishment of relations with Indigenous people. And we want to favour the acceptance of projects.
“We are fortunate enough to count on a large Indigenous population with whom, in some cases, we have established and signed modern treaties. And we have with them some sustainable partnerships, which gives predictability to proponents,” Camden said.
Investissement Quebec
Other government officials also explained how their organizations could assist proponents.
Amyot Choquette, Investissement Québec’s senior director of investment at Resources Québec said the organization’s core purpose was to participate in Quebec’s economic development activities and stimulate innovation and growth of local and international investment, all while supporting business creation and development.
It has close to 1,000 employees located in 30 offices in Quebec and 12 offices abroad to fulfill its mandate. Through its division, IQ International, it has developed a ‘one-stop shop’ for foreign investment in Quebec by providing strategic information, comparative analysis and sector advantages, networking with local and international businesses and decision-makers, site selection services, and services to support recruitment.
Choquette said it acts as the financial arm of the Quebec government. “We can provide several financial contributions to businesses in Quebec through Venture Capital Development capital loans, loan guarantees, investment funds, tax credit, and equity investments. We play a vital role in the economic development of Quebec by stimulating the growth of business productivity and diversification of markets.”
Investissement Québec manages a portfolio of about $12 billion in investment across all sectors of the Quebec economy.
O3 president and CEO Jose Vizquerra (left) at the Marban project core shack near Val d’Or, Quebec. Credit: O3 Mining.
Choquette said the investment agency had substantial financial firepower. “We can contribute financially at every stage of a project on exploration, development, construction and operations with a capital pool of about $1.6 billion. We can invest from $1 million up to $100 million-plus dollars. I suppose Quebec can provide financings and other financial instruments from $10 million up to $250 million, giving you a rough idea of how we can support sizeable mining projects in Quebec,” he said.
Investissement Québec has strict investment criteria, including projects having solid management teams, good economic benefits for Quebec, social acceptability, partnership and profitability of the project being financed. “Over the last three years, we’ve contributed about $200 million for financing mining projects in Quebec,” Choquette said.
Soquem
Meanwhile, Soquem Inc. president and CEO Tony Brisson said his organization’s job was to develop a high-quality government-owned exploration portfolio to make a significant discovery within the next five years.
“Considering its financial structure, Soquem is less sensitive to market and metal price fluctuations than the average junior mining company, which creates a sustainable exploration process,” Brisson said.
Soquem’s activities cover all aspects of exploration, from project generation and grassroots drilling resource estimates to pre-economic assessment.
With the support of Investissement Québec, of which it is a subsidiary, Soquem can deploy its 12 staff geologists to support exploration initiatives over longer-term time frames up to 15 years.
“It’s part of the DNA to partner with our company to share expenses, risk expertise, and develop a win-win scenario,” said Brisson. “Usually, we use two-way partnerships. Soquem may acquire an interest in a project owned by a company or individual, or we may sell an interest in one of our projects into a company or individual.”
He said Soquem was well positioned in the provincial mining ecosystem, often acting as a ‘springboard’ and a project generator across several commodities. “For decades now, we have been buying, selling and participating in joint ventures like this. We have a lot of interesting projects available for sale,” Brisson said.
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