Ottawa Bets on Copper as Cornerstone for Economic Growth
Two of the five “nation-building” projects on Ottawa’s fast-track list are linked to a critical mineral that’s growing in value.
Copper mine expansions in east-central Saskatchewan and northwest B.C. are included in Prime Minister Mark Carney’s plan to boost the economy and “strengthen Canada’s position as a global supplier of critical minerals for clean energy,” according to a press release from the federal government.
Copper is a critical mineral used to transport electricity. It’s found in homes, buildings, technology like phones or computers, and vehicles — especially EVs. Data centres that house artificial intelligence technology are driving the demand further.
Kevin Ansdell, a geology professor at the University of Saskatchewan, says more copper will be essential in the future as the world shifts to greener energy.
“Demand for copper is not going down,” Ansdell said.
But Canadian copper production has gone down in recent years, dropping nearly 25 per cent between 2014 and 2023, according to data from Natural Resources Canada. Globally, Canada had less than one per cent of copper reserves in 2023, while Chile had the largest share at 19 per cent.
The copper mine expansions named to Ottawa’s list of projects won’t make Canada a top global producer, according to industry experts, but they can help add to supply.
Foran Mining Corporation’s McIlveena Bay project is located in one of Canada’s richest mineral belts. The Saskatchewan copper and zinc mine is expected to begin operation next year with the potential to expand in the future.
“We’re really looking at developing a mining district here. We know there’s more copper in the ground,” said Foran Mining’s director of government relations, Carter Zazula. “We have a 140,000-hectare land package. We’re still exploring it as we build.”
Industry experts agree there are more copper deposits to be discovered across the country, but exploration costs money and it doesn’t come with a guarantee.
The president of the Saskatchewan Mining Association, Pam Schwann, says the McIlveena Bay project is a positive step that could lead to future mining operations.
“We’ve gone a long time without a new copper-zinc mine coming into production in Canada, let alone Saskatchewan,” said Schwann. “It sends, I think, an important signal to global investors that Canada is back into building mines again. And that’s a really important signal because we rely on international investment in the Canadian mining industry.”
B.C. and Ontario account for most of Canada’s copper production. The expansion to the Red Chris Mine in northwest B.C. is expected to boost the country’s annual copper production by more than 15 per cent.
This article was first reported by C TV News
