QUÉBEC MINING 2016 Legal Regime - Abitibi Gold - Commodity Diversification Plan Nord - Financing - Innovation-Services and Support - Global ...
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QUÉBEC MINING
2016
Legal Regime - Abitibi Gold - Commodity Diversification
Plan Nord - Financing - Innovation- Services and Support
Mining Development Anchored
MINING DEVELOPMENT
st
in the 21st Century
anchored in the 21 century Welcome letter by Pierre Arcand, Minister of Energy and Natural Resources and Minister
Responsible for the Plan Nord, Government of Québec
Varied mineral potential Mining development in Québec has changed significantly in recent years, and is now
built on a foundation of best practices. Our Government, to ensure that its actions are
consistent with the principles of sustainable development, has prepared a Strategic
Vision for Mining Development in Québec, centred around three guidelines.
Advance existing mining industries and develop new ones
We have introduced a variety of tax-related measures for exploration and mining that
provide even greater incentives for mining investments. We also hope that our measures
to stimulate R&D investments will strengthen existing industries and allow for the
emergence of new ones in areas such as electric transportation, information technology
and health. Thanks to these Government incentives, we are able to assert that Québec
now offers one of the most investment-friendly mining sectors in the world.
Prevent and mitigate environmental impacts
The environment is a priority for Québec. We are taking a proactive approach to this
issue, not only by valorising mine waste, but also by rehabilitating mine sites and
promoting mineral-based energy innovation.
Promote transparency and citizen participation
We have amended our legislation to ensure that mining projects are able to coexist
Acknowledge expertise harmoniously with host communities. Pre-project industry-community collaboration and
hiring of local and Aboriginal workers are now intrinsic aspects of mining development
in Québec. The Act respecting transparency measures in the mining, oil and gas
industries and the Green Paper presenting the Guidelines of the Ministère de l’Énergie
et des Ressources naturelles in the Area of Social Acceptability are additional examples
of our commitment to social involvement.
Plan Nord
Lastly, the Government, through the Plan Nord, has laid down the foundations for a 20-
year cycle to achieve planned, harmonious development of Northern regions and their
vast potential for mining.
Thanks to all these measures, I can unequivocally state that Québec’s mining sector is
firmly anchored in the 21st century!
An innovative, renewed and motivated sector
For further information:
mern.gouv.qc.ca/mines
QuebecMines.gouv.qc.ca
Exclusive
Introduction Financing
Interviews
to Directory
and
NUNAVUT
Québec Plan Nord
Hudson
Strait
GBR, Cluster Industrial,
A guide to the province's legal ProMéxico,
Québec INA and
offers complementary
framework and government CLAUGTO
sources of fundingprovide a
and support
initiatives contact directory
for project of major
developers.
players that together make
6-21 18-25
up Mexico's automotive
Ungava
community. Bay
Hudson Bay
Editorial
Analysis
Mines and Québec's
projects
Global Business Reports'
support base
journalists provide unique
Québec's main players in gold From Abitibi local companies to James
insights into all aspects of the
and new commodities of interest. multinationals. Bay
automotive value chain by
working on the ground and Radisson
26-56
meeting face to face with
industry leaders. TOC 55-77
NEWFOUNDLAND
AND LABRADOR
Eastmain Fermont
Introduction to Québec 36. Interview with Stornoway Diamond Corp Québec's Providers and Support Base
37. Interview with Nouveau Monde
8. Québec Looks Forward to the Upturn 38. Interview with Arianne Phosphate 68. Innovation and Smart Design
Mistissini
10. Interview with Ministry of Energy and 39. Interview with Mine Arnaud 70. Interview with Hatch Sept-Îles
Natural Resources 40. Factsheet: Québec's non-traditional minerals 71. Interview with BBA Matagami
Chibougamau
12. Interview with Québec Mining Association 72. Interview with Hewitt Equipment r
ive
o
49
(QMA) 74. Interview with Englobe R
ce
14. Interview with Québec Mineral Exploration 75. Interview with Atlas Copco en
Precious Metals wr
Association (AEMQ) 76. Interview with Urecon La
St
16. Interview with Osler, Hoskin & Harcourt 77. Interview with Fournier Industries Rouyn-Noranda
17. Interview with Lavery 44. Canada's Favorable Gold Context 78. Positive Deviants, article by Tanguy Paquot Val-d'Or
46. Interview with Richmont Mines Gulf of St Lawrence
18. Making the Most of Each Dollar
19. Interview with Ressources Québec 47. Interview with Hecla Mining Company
20. Interview with Sidex 48. Interview with Osisko Gold Royalties
21. Interview with BMO Capital Markets 49. Map: Québec's producing mines Québec City
22. Interview with SOQUEM 50. Interview with Balmoral Resources Final Thoughts NEW
23. Interview with Société du Plan Nord 52. Interview with Integra Gold Corp. BRUNSWICK
24. Plan Nord Factsheet 53. Interview with Tres-Or Resources 82. Conclusion Montréal
54. Interview with Sphinx Resources 84. Final thoughts
55. Interview with Falco Resources 86. Company Directory
56. Interview with Radisson Mining Resources 90. Credits ONTARIO
Downturn Resourcefulness 57. From Abitibi-Témiscamingue to the World
60. Factsheet: Mining impact on employment UNITED STATES OF AMERICA
28. Beacons of Hope 61. Interview with CMAC-Thyssen
30. Interview with Nemaska Lithium 62. Interview with Major Drilling
32. Interview with Commerce Resources 63. Interview with InnovExplo This research has been conducted by
33. Interview with Geomega Resources 64. Interview with WSP | Parsons Brinckerhoff Ty Jeevaratnam and Razvan Isac
34. Map: Québec's main projects 64. Interview with Meglab Edited by Alfonso Tejerina and Mungo Smith
35. Interview with VanadiumCorp Graphic design by
Inanç Duman / Designa / Özgür & Deniz
A Global Business Reports Publication
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Industry Explorations QUÉBEC MINING 2016 Global Business Reports
GBR • Industry Explorations • QUÉBEC MINING 2016
INTRODUCTION TO
QUÉBEC
"Québec is a great mining jurisdiction: the quality of our geoscientific
database is tremendous, the tax incentives for exploration are great, and the
expertise we have in the province is world-renowned, and globally exportable.
But we still have things to improve, in terms of environmental regulation
uncertainty, and uncertainty regarding access and protection of land."
Frank Mariage,
Image: Courtesy of Nemaska Lithium
Chairman of the Board,
AEMQ
EDITORIAL Global Business Reports Global Business Reports FACTSHEET
Québec Looks Provincial capital: Québec City GDP PER CAPITA
$41,260
Forward
Premier: Philippe Couillard (Québec Liberal Party) (USD, 2014)
Surface: 1.67 million km²
GDP growth (2015): 1.1%
$36,162
Population: 8.3 million (2015) GDP PER CAPITA
to the Upturn
Unemployment rate: 7.6% (2015) PPP
(USD, 2014)
QUÉBEC AT A GLANCE
Source: Statistics Canada, Institute de la Statistique Québec
GDP GROWTH (%)
The Province sees
2,0
1,8
political improvements and
24%
GOLD AND SILVER 1,6
MINING GROWTH
legislative stabilization (2015)
1,4
1,2
10%
METAL
MINING GROWTH
(2015) 1,0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
8 Positive evolution would be the best way to describe the devel- 9
opment of Québec’s mining industry over the past several years.
The prestigious annual survey of mining companies, conducted
by the Fraser Institute, perfectly reflects this trend, with Québec
gradually improving its appeal as an investment destination for
the industry: from 24th in the world in 2013, to 10th in 2014, to
8th in 2015. This report will analyze why and how these positive
THE NEXT LEVEL
changes occurred, and see what role the province will assume for
itself in the future. You look ahead to the next advance, and we do, too. From
Keeping these facts in mind, we arrive in present-day Québec, a our heavy-hauling Minetruck line to LHDs, which include
mining jurisdiction traditionally known for its exceptional gold the new Scooptram ST7 Battery with zero emissions, you
and iron ore reserves situated in the north of the province in re- can face tough challenges with Atlas Copco at your side.
gions such as Abitibi-Témiscamingue (gold), and the Labrador
Trough (iron ore); gold is trading at roughly US$1,250/oz, while
iron ore prices are hovering at US$60/mt. So is it all doom and 819-825-6121
gloom for “La Belle Province” and its miners? Quite simply put: www.atlascopco.ca
no, not at all.
Many developments have been occurring within Québec’s inter-
nal structure in the last five years. The accomplishment with the
biggest impact was the adoption of Bill 70, “an Act to amend the
Mining Act,” which cleared the waters for many potential inves-
tors. “With Bill 70 finally being passed in December 2013, the
whole legislative uncertainty is now gone. The actual amendments
are quite subtle, so there were little changes to the daily operations
of mining companies,” stated Eric Levy, partner at Osler, Hosking,
Image: Courtesy of Arianne Phosphate
& Harcourt LLP.
As always, politics also played a major role in the metamorpho-
sis of Québec’s attractiveness as a mining jurisdiction. On April
7 2014, the Liberal Party won a provincial majority government
of 70 seats in the National Assembly of Québec, with the con-
11
Industry Explorations Global Business Reports Global Business Reports QUÉBEC MINING 2016 Industry Explorations
INTERVIEW Global Business Reports Global Business Reports EDITORIAL
Pierre ment Québec’s natural resource subsid-
iary. “The CMH fund is fully operational
Arcand
now. Out of that, C$500 million will be
exclusively dedicated to Plan Nord proj-
ects; the rest will cover all the province
of Québec. Ressources Québec has made
several investments in the market over the
Minister of Energy and past years and in 2015-2016, we had 10
Natural Resources and interventions over a broad scope of com-
Minister responsible for the Plan Nord
panies at different development stages of
their projects for a total of C$220 million.
GOVERNMENT OF QUÉBEC The two main projects we supported this
year belonged to Osisko and Agnico Ea-
gle, but in the past, we also offered help to
What were the main objectives you set so, it hopes to support the revival of the and government financial support through, Stornoway Diamond Corporation (Project
for your mandate? Plan Nord by providing access to strategic among others: Investissement Québec, a Renard’s construction phase), and Cana-
When the Québec Government came to infrastructure to mining companies. state-owned enterprise which participates dian Royalties (Project Nunavik Nickel’s
power in April 2014, it made a number of With regard to mine operations, the in the capital of companies, grants loans operational scale-up),” explained Denis
commitments. We undertook to share min- Éléonore gold mine began commercial and loan warranties; the Caisse de dépôt Williams, general manager of Ressources
ing, oil and gas royalties with local and production last summer. The processing et placement du Québec, a state-owned Québec.
Aboriginal communities, use natural gas plant for the DSO iron project in Schef- enterprise which manages the assets of Image: Courtesy of Stornoway Diamond Corporation
Leaving politics aside and diving deeper
supplies to aid in the recovery of the Côte- ferville recently began operations too, and the public and parapublic insurance and 8 into Québec’s mining operations, we see
Nord region, and develop a world-class Stornoway’s Renard diamond mine is also pension plans; and the Fonds de solidar- servative Parti Québecois coming in sec- the extractive industries operating within numerous, overall positive developments.
network of suppliers and equipment man- starting production this year. Other proj- ité FTQ, a development capital fund that ond, with 30 seats. “The election of a new the Plan Nord area, and yearly Hydro- From favorable US$/C$ exchange rates
ufacturers in the mining, hydroelectricity ects may also start between now and the calls upon the savings of all the Québec- provincial government has had a good Québec contributions. Furthermore, a improving gold producer profits, to non-
and forest sectors. In addition, we prom- end of the decade. Examples include Ari- ers. Québec also offers advantageous tax impact. The dialogue between the indus- special fund, the Capital Mines Hydrocar- traditional mineral projects marching
ised to reactivate sustainable Northern de- anne Phosphate and Mine Arnaud, which credits, a qualified workforce throughout try and the authorities has improved, there bures (CMH), worth C$1 billion, was also strongly to operation, Québec is visibly
10 velopment with the Plan Nord. are expected to begin apatite production its territory, a top-notch geo-scientific da- is a better general mood within the sector included within the initiative. This was en- rallying up forces and moving in the right 11
Our Government has established a favor- in 2019. Royal Nickel’s Dumont project, tabase, a competitive network of suppliers and investors now view Québec as once trusted to Ressources Québec, Investiss- direction. ▬
able environment for mining investment. a large open-cast nickel mine, could also and equipment manufacturers, and road, again being open for business,” said Levy.
We have a new mining regime, clear, start up in 2019. In addition, Nemaska railway and maritime links to much of its Communication and investor perception
stable and predictable. Indeed, Québec’s Lithium’s Whabouchi project will be start- territory. were not the only elements of the equa-
business structure is competitive and of- ing a pilot plant in Shawinigan this year. The stable business environment created tion that improved as a result of this politi-
fers some of the most advantageous mea- by the adoption of the Mining Act has also cal change. One year later, in April 2015,
sures in Canada. What has been done so far as part of the helped maintain the level of investment in Premier Phillipe Couillard announced
new Plan Nord? Québec. Furthermore, in the last Québec the revival of Jean Charest’s “Project of
How would you characterize the evolu- The Plan Nord has a budget of C$450 Government Budget, mining exploration a Generation,” the development of 72%
tion of Québec’s mining sector since you million over five years. The Société du credits were increased by 25% and a 20% of Québec’s land surface, covering 1.2
came into office? Plan Nord (Plan Nord Corporation), cre- rebate on electricity prices has been given million km2 in the north of the province:
The mining industry is an important sec- ated a year ago, already has a number of for a period of four years to companies the Plan Nord. However, this new ver-
tor of Québec’s economy. In 2015 alone, achievements to its credit, including in- who process natural resources. Clearly, sion would be a scale-down of its 2011
it generated nearly C$3 billion in invest- vestments in the Bloom Lake mine, the Québec is open for mining business.
Built from
original predecessor – Couillard called
ments and supported more than 30,000 acquisition of railway and port infrastruc- for public and private investments total-
direct and indirect jobs. Québec’s mining ture in the Pointe-Noire sector of Sept- What are the Department of Mines’ ing C$50 billion over 20 years through to
shipments in 2015 were valued at C$7.7 Îles, a direct-shipping iron mine project main objectives for the medium term?
the core.
2035, a significant change from Charest’s
billion. Québec is responsible for 20% of in Schefferville, measures to promote re- The Québec Government unveiled its new initial plan, of C$80 billion over 50 years.
Canada’s total mining production. It pro- gional employment, a telecommunications Strategic Vision of Mining Development Breaking that down further, C$20 billion
duces and develops 15 metals and 13 non- investment in Nunavik, assistance to the last March. This takes the form of a five- would come from Hydro-Québec’s new
metallic minerals, and is considered to be Town of Sept-Îles for economic and envi- year plan containing 50 actions designed projects, C$2 billion from the government Osler’s lawyers dig deeper to help you achieve your business goals –
Canada’s most diversified mining produc- ronmental projects, the signature of a new to achieve 38 objectives. Three main as public infrastructure, while the other through M&A transactions, commercial arrangements, taxation,
er. agreement with the Cree Nation, and fund- guidelines are identified: advance existing C$28 billion would be constituted by pri- environmental and aboriginal matters, mineral and surface rights,
In spite of the difficult economic context, ing for a feasibility study for a rail link be- mining industries and develop new ones, vate-sector investments. construction and infrastructure matters. It’s law that works.
there are a number of positive elements. tween Sept-Îles and the Labrador Trough. prevent and mitigate environmental im- Consequently, the Société du Plan Nord
Champion Minerals has bought the Bloom What factors make Québec a globally pacts, and promote transparency and citi- was created in 2015 to implement this ma-
Lake mine from Cliffs Natural Resources. attractive and competitive mining juris- zen participation. The Vision applies to the
Osler, Hoskin & Harcourt llp
jor endeavor. Over its intended timeline, osler.com
The Québec Government has also pur- diction today? entire mining sector and also touches upon the organization will benefit from a total
chased Cliffs' facilities at Pointe-Noire, Québec offers many advantages to mining primary metal processing, suppliers and estimated budget of C$2.7 billion, which
along with the Arnaud railway. In doing companies, including its mineral potential equipment manufacturers. ▬ is generated by tax-money coming from
Industry Explorations QUÉBEC MINING 2016 Global Business Reports Global Business Reports QUÉBEC MINING 2016 Industry Explorations
INTERVIEW Global Business Reports Global Business Reports FACTSHEET
how we can emulate the right behavior. We are proud that 4,500 mine
workers have accepted to participate.
What has been the overall effect of the new Mining Regime?
The new Mining Act helped clear the waters in terms of predictability, QUÉBEC'S MINING SECTOR
however it also brought new obligations. The intent was to create more
communication with local communities and municipalities. However,
Source: Government of Québec
the new monitoring committees have to be financially sustained by
25
the mining company; it is unclear for us where this actually stops. An-
other measure was related to site rehabilitations. Now, before getting
Josée a permit, a mining company must provide a financial guarantee cov-
ering 100 % of the restoration’s costs. That translates to considerable
ACTIVE
MINES
Méthot
increased costs in the early stages of development. Also, we are now
obliged to submit a complete environmental assessment study for op-
erations exceeding 2,000 mt/day, as opposed to 7,000 mt/day before.
Finally, public consultations are mandatory for all projects, irrespec-
tive of their size. Consequently, it is difficult for us to remain competi-
2
MINES IN
President and CEO tive on the global scale.
CONSTRUCTION
QUÉBEC MINING
ASSOCIATION (QMA) Are we seeing more mineral diversification in play in Québec?
The diversity of our mineral potential will ultimately carry us through
What have been the QMA's recent milestones?
The QMA has made important reforms in terms of membership, gov-
the downturn. When the liberals launched the Plan Nord 2.0, they sent
out a clear message: that mining is a core business for Québec. We
all know this is a difficult time for iron ore, zinc or nickel. Thank-
26
DEVELOPMENT
ernance, and rules of operation. We have opened our doors to become fully, we have strong gold production in Québec; and we are getting PROJECTS
more inclusive. Nowadays, the essential support system that the mining good news in apatite, with Arianne Phosphate, and diamonds, with
industry needs to operate is part of our association: service providers, Stornoway. Moreover, Royal Nickel’s Dumont project is expected to
12
equipment suppliers and research organizations. Moreover, the QMA is
committed in two important programs: the Towards Sustainable Devel-
opment initiative, and a new Health & Safety innovative project.
start construction soon. Projects in lithium and rare earths also bring
some hope. 310
EXPLORATION
............................................
What makes Québec a great mining jurisdiction, and what are the PROJECTS BUILT
Could you give us more details about your Health & Safety pro- QMA’s plans for 2016?
grams? The quality of our manpower in Québec and the excellence of our ON E XPERIENCE.
Health & Safety (HS) is one of the top priorities for the QMA and its
members. In the last few years, we have created a Workplace Health and
universities and research centers are core strengths. Furthermore, we
are still a very stable and predictable jurisdiction, as compared to oth- C$ 7.7 billion C$ 3.2 billion FUELL ED
Safety strategic committee (WHS). Québec has a strong track record in
this field, but the QMA is now pushing this further through a revolution-
ers. For 2016, the QMA is targeting to improve communication and
dialogue with local communities and First Nations. Otherwise, another
production value exports value
BY E XPERTISE.
ary initiative to identify the typology of responsible employees. We are important step will be the integration of Minalliance, an organization
trying to see what makes some people accident-prone and some not, and meant to promote mining to the general public, within our structure. ▬ For more than 35 years, BBA has been
28
DIFFERENT
helping industrial clients transform complex
problems into practical, innovative and
MINERALS
sustainable solutions.
15 metals
13 indusrial minerals
Recognized for its extensive field
experience and cutting-edge expertise,
C$ 2.9 billion Average investment
in mining over the
last decade
BBA delivers a comprehensive range
/ year
of consulting engineering services,
from studies and asset integrity plans to
commissioning and operational support.
With offices from coast to coast, BBA
is synonymous with proximity and agility.
Industry Explorations QUÉBEC MINING 2016 Global Business Reports Global Business Reports Industry Explorations
INTERVIEW Global Business Reports
Frank
Mariage
Chairman of the Board
QUÉBEC MINERAL
EXPLORATION ASSOCIATION
(AEMQ)
What has been the overall effect of Bill 70 on the mining industry? started falling in the rankings all the way to the 18th place because of
Québec went through four legislative attempts to reform the Mining Act the uncertainty that surrounded the numerous attempts to amend Qué-
in five years. Moreover, during this time, provincial elections occurred bec’s mining regime. The 2015 report put us up to the sixth place, and
as well, where mining was a hot topic. All these factors created a very the reality is that Québec is a great mining jurisdiction: the quality of
difficult environment. Venture capital does not mind risk, because inves- our geoscientific database is tremendous, the tax incentives for explo-
tors can calculate; what they cannot calculate or measure is uncertainty. ration are great, and the expertise we have in the province is world-re-
Now, we have greater certainty; unfortunately, we are confronted with nowned, and globally exportable. But we still have things to improve:
an unfavorable global commodity climate. The AEMQ is working with we are ranked 60th in the world in terms of environmental regulation
the government to see what we can do together to offset that. uncertainty, and uncertainty regarding access and protection of land.
Québec saw a resurgence in the 2015 Fraser Institute’s Mining Sur- In 2015, the government of Québec placed a moratorium on ura-
vey. What makes Québec a top mining destination today? nium mining in the Province. How did that affect the industry?
Taking a step back, in 2007/2008, Québec was ranked first in the world Although the moratorium is not yet official, there is presently a de-fac-
14 by the Fraser Institute. That occurred due to reasons such as a favorable to moratorium on uranium which has been in effect since 2012-2013.
tax regime, incentives, and sound government planning. Then, Québec Strateco Resources is now suing the government for more than C$190
million, and all this stems from the fact that Strateco put about C$120
million in developing its project, promoting it, even attending interna-
tional events with the Premier, as being a core part of the Plan Nord,
only to get their permits rejected in the end. There is a spillover effect
across all resources, and the industry. International financiers know
what is happening in Québec, and they can quickly dismiss any proj- Our expertise
ects, no matter the commodity or resources, if they are in the proximity
of Strateco’s propriety; this has happened to some of our members. and financial resources
will help your company
In April 2015, Premier Philippe Couillard announced a scaled-
down revival of Plan Nord. What has been done so far? prosper in Quebec.
We had a Plan Nord 1.0, and now a Plan Nord 2.0. The initial objec-
THERE ARE PLENTY OF GREAT REASONS tive was to help out the iron ore mega projects in the Labrador Trough,
TO BECOME A QMEA MEMBER: which needed massive infrastructure investments, but with the down-
turn of the iron prices, people started looking West in the province,
Business Networking
analyzing what else is out there. So now we are happy to see the ad-
Visibility opportunities vancement of other projects not related to iron ore, like Stornoway,
Preferential rates Nemaska or Arianne's projects. We have strategic minerals that will
Insider Information require secondary transformation, which will occur in Québec, and
thus generate more jobs, and more added value.
Just ask one of our more than 1,200 members! What are AEMQ’s main plans and objectives for 2016?
Isn’t it time you joined too? As explorers, access to land is AEMQ’s first priority for 2016. Second-
ly, we will be focusing on helping the government review its regula-
tions regarding the permitting processes for mining companies, which
have become cumbersome. Thirdly, we will continue our proactive ap-
819.762.1599 proach with communities, both Aboriginal and non-Aboriginal. In ad-
info@aemq.org dition to that, the AEMQ will continue developing its annual congress,
aemq.org Xplor, into a world-class event. ▬
Industry Explorations QUÉBEC MINING 2016 Global Business Reports R E S S OU RC E S QU E BE C . C OM
INTERVIEW Global Business Reports Global Business Reports INTERVIEW
Eric Levy & erational level, we are involved with Mason
Graphite. Internationally, Lavery mining spe-
Have there been improvements in the dia-
logue between First Nations and the min-
Hugo-Pierre Gagnon
cialists are in the boards of several Québec ing industry?
mining companies that are active outside of The relationship between the mining industry
Canada and that are performing very well at and the First Nations has become a lot more
the moment, like Dynacor Gold in Peru and business-focused nowadays. Companies look
Maya Gold and Silver in Morocco. at First Nations and see partners willing to
help and contribute to developing projects
EL: Partner
What is your view on Bill 70 and how has it by offering various services (manpower,
HPG : Partner changed Québec's mining industry? contracting, equipment, etc.) at a local level.
OSLER, HOSKIN & EL
The adoption of Bill 70 was important be- Communication has improved dramatically
René
HARCOURT LLP cause it put a lid on legislative uncertainties and that has led to a win-win situation.
in Québec. The actual changes that it brought
were not so dramatic, but, once again, people Are Québec companies leveraging their ex-
How has Québec's mining sector evolved in recent years? Branchaud did stop talking about it, which was a very
positive effect. The industry still confronts it-
perience to offset the market conditions by
finding contracts abroad?
EL: Overall, our mining clients in Québec are experiencing a self with PR issues, but most of this bad repu- Companies from Québec have been exporting
very difficult climate at the moment, mostly because of the HPG Partner tation comes as a result of the abandoned sites their expertise abroad for years. We are form-
harshness and the duration of the commodity prices’ downturn. LAVERY of the 40s and 50s. People need to understand ing world-class geologists, and mining engi-
However, positive changes have occurred since 2013: the elec- Toronto. Here, in Montréal, we have a great local team with tre- that the times have changed: we cannot blame neers at universities such as McGill or Laval,
tion of a new Provincial government has had a good impact – the mendous experience in all transactional aspects relevant to the the miners of today for the actions of the in- who are then able to work all over the world.
dialogue between the industry and the authorities has improved, mining in mergers & acquisition dustry. We are especially adept dustry 70 years ago. Nowadays, our clients There are several cases of drilling companies
there is a better mood within the sector, and investors now view at dealing with the TSX Venture Exchange, where most of Qué- Could you outline some of the mining proj- pursue responsible mining practices and on formed in the Abitibi region, which are now
Québec as once again being open for business. Furthermore, with bec’s juniors are listed. Our real strength is that all our offices ects you have been working on? most accounts, they were ahead of the legisla- globally recognized brands. Essentially, that
Bill 70 finally being passed in December 2013, the whole legisla- work together as one team. Furthermore, through our network, Lavery has been heavily involved in the con- tion present in Bill 70. It is a paradox to hear means that even if the mining industry goes
tive uncertainty is now gone. The actual amendments are quite Osler is able to assist clients even in foreign jurisdictions. solidation process that is currently happening people complain about mining in Québec, quiet in Québec, these companies can still
subtle, so there were little changes to the daily operations of min- within Québec’s mining industry, with cases since this a Province that was significantly continue to do good work in other jurisdic-
16 ing companies. The royalty payment debate was a very tricky What are the fundamental qualities a mining company needs like the creation of Oban Mining. At an op- built with the help of this particular industry. tions abroad. ▬ 17
one however, and thankfully, that was settled mid-2013 with a to survive the downturn?
hybrid solution, containing a minimum, and a progressive tax, HPG: The most important asset is the management team, which
based on mining companies’ outputs. This flexible measure was needs to have geologists, engineers, miners and business people
essential, as it gave the industry some air – otherwise, a heavy,
JOIN US!
with a proven track record of success, in Québec and abroad.
first-dollar type of royalty would have suffocated the sector. Obviously, juniors also need great mineral assets. We are see- SME’s 5th Annual Current Trends in Mining Finance
ing more and more companies being active in non-traditional (CTMF) Conference:
What are some of the strategies that Osler’s mining clients commodities, such as rare earths, lithium, or niobium, which
are using to attract the much-needed financing? are heavily used in the constantly growing, high-tech industries. MANAGING THROUGH THE CYCLE,
EL: Gold is currently a stabilizing factor for Québec’s mining We see these non-traditional commodities as an area of growth
industry, due to the very favorable USD/CAD exchange rate. for mining companies in Québec. In addition to that, fostering
INVESTING FOR THE FUTURE
That said, the issue is that none of the big gold producers, cur- good relationships with Québec’s key financial, governmental April 30th – May 3, 2017
rently active in the province, are Québec Inc. anymore. Osisko and mining institutions such as SOQUEM, Ressources Québec, at the Offices of Shearman & Sterling, New York, New York
is the exception, and they are doing tremendously well, having Investissement Québec, Fonds de solidarité des travailleurs du
just settled a C$150 million financing deal in early February, but Québec (FTQ), or the Caisse de dépôt et placement du Québec, Revisit the CTMF Conference website for updates and to register to attend the events that
they are a royalty company, which operates under a completely will focus on the outlook, trends and issues that impact raising capital in the mining industry.
is also essential.
different business-model. The exploration companies that Osler Hear experts in the global mining, banking and the investment community talk about best
practices and technology used to manage technical and non-technical risks associated with
represents have mostly been in survival mode these past couple Going forward, what should we expect from Québec’s min- mining projects.
of years, and they are starving for cash: public company costs, ing sector in 2016? Register early for the conference, the dinner and 3 workshops about: Increasing the reliability
renewal of permits, auditing – all these expenditures make life HPG: As a trend, we expect more and more insolvency proceed- of mineral resource estimates for exploration and development of a mining project; the
very complicated for juniors right now. On top of that, even the ings to occur for mining companies with projects that have be- Global Battery Supply Chain and Energy Storage – the 21st Century’s New Oil; and legal
end-of-the-year, flow-through financing, which used to be more come too costly, such as Cliffs Natural Resources’ Bloom Lake issues about the raising of capital, public disclosure of resources and funding green field vs.
prevalent, is considerably weaker today. project. In addition to the strong M&A consolidation activity we brown field projects, and other topics.
already mentioned, we also believe that smaller exploration com- Join us to network with mining, engineering, technology and other executives as well as
What are some of the key strengths that recommend Osler to panies will be going private, so as to mitigate their significant
analysts, bankers, private equity firms and high net worth investors by attending the
conference, dinner and receptions.
the mining sector? public company, governance and disclosure costs. Moreover, this
HPG: Osler benefits from extensive synergies between its of- move would facilitate easier access to private financing sourc- The format of the event encourages networking. Join Us!
fices in Canada and New York: we have offtake arrangement es. In 2016, Osler will continue to help its mining clients during
specialists in New York, infrastructure, project finance and oil Visit the 2017 CTMF Conference website for Updates,
these difficult moments for the industry. We know that business to Register and become a Sponsor!
and gas expertise in Calgary and Vancouver (our newest office), will be back due to the cyclical nature of the mining industry, and
and mining, financing and mergers and acquisition expertise in when that happens, we will still be here. ▬
Industry Explorations QUÉBEC MINING 2016 Global Business Reports Global Business Reports QUÉBEC MINING 2016 Industry Explorations
EDITORIAL Global Business Reports Global Business Reports INTERVIEW
What has Ressources Québec achieved since we are only a complementary financing
Making the Most of Each Dollar over the last years?
Ressources Québec was launched in 2012,
so we spent some time successfully putting
a team into place, and getting our name in
actor, we need others to be involved as well,
and that is not happening right now. How-
ever, in the long-run, we expect to become
active in this segment again, due to the large,
the industry. We manage our own budget, as untapped potential in the Labrador Trough.
part of Investissement Québec, but we were
Québec offers its own financing alternatives to the industry also entrusted with a provincial governmen- What characteristics in a company make
tal fund. In 2011, when the initial Plan Nord it an attractive target for Ressources Qué-
was envisioned by Jean Charest’s liberals, bec?
the idea was to give Ressources Québec Ressources Québec will always be a com-
C$750 million to manage. In 2015, one year plementary player on the financing scene.
after Premier Philippe Couillard’s election, Therefore, the first thing we look at when de-
the liberals renewed their promise and even ciding to invest in a project is whether there
supplemented it with C$250 million, creat- are other financial institutions backing it up
“
Previous boom years in the industry created ing the Capital Mines Hydrocarbures (CMH) as well. Afterwards, we obviously analyze
the impression that the sources of financing fund, for a total of C$1 billion, which is fully the strength of that project’s management
We are pleased with what Québec is doing to foster a very stable exploration and
were limitless. This is how hundreds of junior operational now. Out of that, C$500 million team, the quality of its mineralization, and
companies flourished, with the same groups
spinning off two, three or four different as-
mining environment. The province remains one of the best places in the world to
pursue metal prospecting." Denis will be exclusively dedicated to Plan Nord
projects.
the global economics of the commodity in-
volved. Our investment needs to have a di-
sets into new entities. Then, suddenly, the
free buffet was over, and even today, when
Michael White, President and CEO, IBK Capital Corp
Williams Ressources Québec has made several invest-
ments in the market over the past years and
rect, visible impact. Nowadays, you cannot
finance an entire operation in one go – proj-
”
we seem to be reaching the final stages of this in 2015-2016 we had 10 interventions over ects need to be delineated into development
long low cycle (at least for certain commodi- a broad scope of companies at different de- phases: that gives us more confidence that
ties), access to funds continues to be the main fett, president and CEO of Tres-Or Resources. as investors will focus their eyes on those few velopment stages of their projects, for a total our money will be spent properly.
headache for project developers. Companies active in Québec can also look out companies that are actually moving forward. of C$220 million. The two main projects we
Eric Levy, partner at Osler, Hoskin and Har- General Manager supported this year belonged to Osisko and What makes Québec an attractive mining
for the support of several public and private In the words of David Grondin, president and
court LLP, explained that exploration compa- bodies that provide financing and promote CEO of TomaGold, "a company will see sig- RESSOURCES QUÉBEC Agnico-Eagle, but in the past, we also of- jurisdiction for foreign investors?
18 nies have been in "survival mode" over the economic development in the Province, in- nificant financial growth if it can manage to fered help to Stornoway Diamond and Cana- Because of the difficult global commodity 19
last years: "They are starving for cash; public cluding Ressources Québec, development raise a large amount of cash for project devel- dian Royalties. climates, we are finding that financiers are
company costs, renewal of permits, audit- capital fund Fonds de Solidarité FTQ, the opment in the current environment. Drilling more prudent now; however, they still see the
ing – all these expenditures make life very SIDEX diversification fund, and the Caisse is currently not expensive, and by only in- What is the current status of SOQUEM? potential here. Québec is a diversified, and
complicated for juniors right now. On top of de dépôt et placement du Québec. And, this creasing drilling activities, mining companies SOQUEM continues its mandate of helping politically stable mining jurisdiction, with
“
that, even the end-of-the-year, flow-through does not exclude the possibility of knocking can prepare themselves for when the markets companies discover new projects in Québec, great geology, and it has also become pre-
financing, which used to be more prevalent, on the door of other federal-level agencies, increase." doing excellent work on that front – they dictable, with the new mining regime passed
is considerably weaker today." like Nemaska Lithium did when it obtained In Québec, gold activities are recovering, have a total portfolio of around 70 projects, in late 2013. Investors needed that, and they
And yet, companies in Québec benefit from a C$12.87 million grant from Sustainable De- thanks to the favorable currency exchange Our investment needs to have a direct, and they take on about 15-17 new tasks year- currently feel comfortable knowing the rules
advantageous tax regimes when it comes to velopment Technology Canada (SDTC). rates and to higher price levels in the precious visible impact. Nowadays, you cannot ly. Their goal is to help mining companies to of the game. Moreover, there is a wealth of
exploration: "It is primarily the tax regime Raising dollars continues to be tough, even in metals spectrum during 2016. Iron ore, how- finance an entire operation in one go, further develop their projects, making them human expertise in the province: we have
that has improved Québec’s mining industry. Québec, but the truth is that juniors operating ever, does not see the light at the end of the projects need to be delineated into marketable, and then finding partners that the schools, the mining companies, and the
We receive money back for putting hard dol- in other jurisdictions in Latin America or Af- tunnel yet. In this context, Québec is looking can bring those operations into production. service support system, which all operate at
development phases. That gives us more
lars in the ground. Since 2011, the tax filings rica do not have the same access to these sorts to leverage its geological richness to promote a world-class level. Lastly, there is good ac-
confidence that our money will be spent
have been taken over by Revenue Québec, of investment vehicles to obtain financing. other commodities, and this is where having Stornoway Diamond, Arianne Phosphate, cess to capital, in Québec, and also through-
who efficiently process and refund money to
properly.
Beyond survival, being able to add value by an investment fund with a clear mandate to Nemaska Lithium –just a few examples of out Canada.
junior companies in need of exploration funds the drill bit in the current context is the key promote diversification like SIDEX can pay solid projects moving ahead in Québec.
”
to move forward," explained Laura Lee Duf- differentiator for juniors in the marketplace, off. Are we seeing increased mineral diversi- What should we expect from the mining
Michel Champagne, general manager of SI- fication today, and is iron ore still a valid sector moving forward?
Image: Courtesy of Richmont Mines
DEX, acknowledged that the fund has had mid-term option? We expect to see more M&A activity in the
to reduce the size of their financings in the It is very encouraging to see mineral diver- market, because some companies, especial-
current market, from C$500,000 to between sification happening in Québec, a province ly in the exploration phase, will have to re-
C$50,000 and C$100,000 per project. He put traditionally known for its iron ore and gold think their ways of developing their projects,
emphasis on the promotion of non-traditional resources. More and more, new discoveries in this cash-tight investment scene. In the
commodities: "Diversification is a way to al- of rare earths, graphite, lithium, apatite, and meantime though, Ressources Québec will
leviate the effects of struggling commodity even diamonds are making the headlines, continue to support the mining sector, as we
markets. Different mineral markets are not al- strengthening Québec’s brand as a mining know that the industry will come back. It is
ways on the same cycle, which means that if industry, and offsetting the risks of being too essential for projects to continue to be devel-
one commodity market is down, the industry focused on one or two commodities. In the oped, so that when the downturn finally ends,
can be carried by another market." ▬ short-term, it is unlikely for us to act in any they are ready to tackle the markets, and hit
way in regards to iron ore projects in Québec: the ground running. ▬
Industry Explorations Global Business Reports Global Business Reports QUÉBEC MINING 2016 Industry ExplorationsINTERVIEW Global Business Reports Global Business Reports INTERVIEW
Can you give an update of SIDEX’s ac- major production of minerals in Québec is How has BMO evolved within the Qué- with companies and international inves-
tivity in the mining industry? iron, but the mining industry also depends bec mining industry over the last three tors. BMO is interested in what is trending,
Since 2011 there has been a downturn and on gold, nickel, and other commodities. It is years? what are the key concerns, and what are
operating within the mining industry has important for the mining industry in Québec BMO Capital Markets is a North Ameri- the opportunities globally and locally. This
been challenging, but we are currently start- not to be dependent on one mineral. Differ- can investment bank, but within the min- global interest makes us relevant within all
ing to see a pickup in the market. Our core ent mineral markets are not always on the ing industry, we have a truly global fran- the cycles in the mining industry.
business is to finance exploration ventures same cycle, which means that if one com- chise. Our mining platform has continued
and we have succeeded in financing a sig- modity market is down, the industry can be to be large and strong over the past three What is your take on the current levels
nificant amount of projects over the last carried by another market. years, including in Québec. While certain of M&A activity?
few years. Although the volume of projects banks have been downsizing, we have not There is an expectation that the larger com-
that we finance has not significantly de- What do you think of the new Plan Nord? changed our stance relative to the mining panies facing certain debt burdens will
creased, the size of the projects and financ- Plan Nord was based on the possible iron sector. have to divest their assets. In all likelihood,
ing has been reduced. Instead of financing production coming from the Labrador One of the main challenges in the mining there will also be some consolidation be-
C$500,000, we have scaled down to finance Trough. Since the iron ore price has de- industry is access to capital. Fortunately, in tween the junior companies in the market
only about C$50,000 to C$100,000 for in- creased significantly, the project has taken Québec’s mining sector, there are a number in order to have a better chance at raising
dividual projects. SIDEX does not have a on another focus and targets other commod- of government related institutions, such as capital.
specific annual budget and we are trying to ities, such as diamonds or lithium. Every- Ressources Québec, Sodémex and SIDEX,
Michel meet all the needs of the industry. body wants to build infrastructure during
the low cycles, but attaining investment for
which help stimulate mining investment in
the province. These financing institutions
What differentiates BMO within a very
competitive sector? Nicolas
Champagne Brunet
What are the main elements that SIDEX infrastructure is always challenging, as in- are complementary solutions to the market, The scale and depth of BMO’s mining
looks at when deciding to finance a proj- vestors cannot see immediate return on the but private companies and private sources platform, combined with our commitment
ect? risk that they are taking. of funding are still required. The ultimate to the mining sector during all periods of
SIDEX will firstly look at the quality of the objective is not for the institutions to do the cycle, gives us a great advantage in the
project, and we also consider the manage- Is Québec a better mining jurisdiction transactions on their own, but rather to un- market. We are active in the space from an
ment and the capital structure of the com- today compared to 2013? lock financing situations. investment banking standpoint, working
General Manager pany before deciding to finance. Over the There has been a significant amount of for corporations, as well as from an insti- Director, Global Metals & Mining,
SIDEX last few years, we have been looking sig- changes within the mining industry since In this difficult climate, what are the tutional sales standpoint, working with in- Investment & Corporate Banking
20 nificantly more at the Corporate Social Re- 2013, and the mining environment has main factors BMO looks at before fi- stitutional investors. The depth of our fran- BMO CAPITAL MARKETS 21
sponsibility (CSR) of the projects that we probably improved. CSR is currently more nancing mining companies? chise makes us relevant and active on all
finance. Companies need to provide a CSR of a preoccupation, but it does result in in- We will look at the economics and feasibil- fronts, which in turn drives deal flow.
plan that takes into account the environ- creased time for project completion and thus ity of the project, the demand of the com- Operating in Québec also has great ben-
“ “
ment, communities and safety and security. increased costs. There are also more regula- modity, project margins, quality of man- efits, particularly as it relates to working
tions and mining companies need to work agement, contemplated funding, and the with local mining funds. Stornoway Dia-
Can you give a case study of a successful harder to satisfy the stakeholders. However, capital structure of the company. The mix mond is a great case study for any company
There are more regulations in Québec project that SIDEX financed? flow-through share financings, tax credits between the various security classes has seeking a sizable financing in the mining There is an expectation that the larger
and mining companies need to work SIDEX is a diversification fund and we for money spent exploring and credits for changed, depending on market windows sector. Their very successful transaction companies facing certain debt burdens
want to encourage and diversify mineral mining duties still make Québec one of the and general conditions, but the general cri- in 2014, raising more than $900 million,
harder to satisfy the stakeholders. will have to divest their assets. In all
exploration, thus we are restricted from fi- most favorable jurisdiction to explore. teria and principles have not changed. called upon various classes of security, eq-
However, flow-through share financings, likelihood, there will also be some
nancing gold projects in established mining uity, convertible debt and royalties, in ad-
tax credits for money spent exploring camps. We are involved in a broad range What are SIDEX goals for the next three Compared to 2013, is Québec currently dition to working with the local funds such
consolidation between the junior
and credits for mining duties still make of exploration projects for any commodity to five years? regarded as having a more stable busi- as Ressources Québec, Fonds FTQ and companies in the market in order to
Québec one of the most favorable with an attractive market outlook such as In 2015, we devised a funding instrument ness environment? CDPQ. have a better chance at raising capital.
jurisdiction to explore. phosphate, diamonds, lithium and graphite. in collaboration with the Solidarity Fund Uncertainty in the business environment is
” ”
With regards to lithium, we are focused on and Caisse de dépôt to support companies never a good thing. The regulatory changes Finally, can you elaborate on BMO’s
the Nemaska project as we think that this that are struggling in the current climate. that were effected in 2013 have been kept conference held in Florida earlier this
deposit has the most chances of going for- Our aim is to assist companies to survive in place, and the new mining code has been year?
ward. In terms of graphite, we are most- while the markets are down. We also saw implemented according to plan. Currently In 2016, we celebrated the 25th edition of
ly focused on the project with Nouveau that companies have difficulty raising funds there is an element of confidence which is the conference and it was again a huge suc-
Monde. Some of our success case studies and thus, from 2014, we started to offer partly due to the majority government that cess in the context of challenging markets.
include the Stornoway Diamond project, companies a quick fix financing option. is in place. In my opinion, Québec has re- We had a significant amount of participa-
the Virginia Baie James projects, and we We will offer companies with a good proj- mained a very good place to do mining and tion, with over 245 investors and 215 com-
also financed the first exploration drill holes ect and serious management C$100,000 for business in general. panies attending the conference, providing
for the Canadian Royalties mine. fieldwork. a good split between investors and compa-
Companies and investors should keep an How does your international reach help nies. In addition, we had a significant rep-
How important is mineral diversification eye on the Québec mining industry. Projects you provide better services and solutions resentation of private equity funds. In total,
for the attractiveness of Québec? are doing well and succeeding and there are to clients? over 4,000 one-on-one meetings between
Diversification is a way to alleviate the ef- still many opportunities to invest in the in- The mining space is truly a global sector companies and investors took place at the
fects of struggling commodity markets. The dustry. ▬ in terms of the being in a flow of dialogue conference. ▬
Industry Explorations QUÉBEC MINING 2016 Global Business Reports Global Business Reports QUÉBEC MINING 2016 Industry ExplorationsINTERVIEW Global Business Reports Global Business Reports INTERVIEW
What are the main differences between Could you provide us with an overview of
Jean Charest’s original initiative and the the financial framework behind the Plan
Can you provide an update of SOQUEM We are always trying to find new, more ef-
Plan Nord 2.0? Nord?
and the evolution of the company over ficient ways of exploring. Funding masters
The approach towards sustainable develop- Our ambition is to reach C$50 billion of in-
the last three years? theses and PhDs is also a method we use
ment and stakeholder partnerships remains vestment by 2035. More specifically, within
As a corporation, SOQUEM is lucky to to improve exploration technologies. SO-
the same in Plan Nord 2.0 as it was in the the next five years, the Québec government
have a constant budget, contrary to the rest QUEM collaborates with the universities
original initiative. The concept had been well will make C$1.7 billion available to the
of the industry, which is finding it difficult and technical schools and we hire young
organized and thought of, and what remained Plan Nord, with C$360 million coming from
to attain financing for exploration projects. geologists and technicians to keep new in-
to be achieved was the actual implementation the Fonds du Plan Nord, and the remaining
Over the last three years, we have been formation and ideas coming into the com-
of the plan: this is where the Plan Nord 2.0 C$1.34 billion coming from various depart-
doing a significant amount of drilling on pany.
starts becoming different than its predeces- ments within the governmental apparatus.
various projects, particularly the B26 gold-
sor. The creation of the Société du Plan Nord, On top of that, we have the newly created
zinc-silver-copper project. SOQUEM has What are your comments on the diversi-
getting the Québec government behind the CMH (Capital Mines Hydrocarbures) fund,
also been focusing on the Kwyjibo REE fication of the mineralization spectrum
idea of taking concrete action, making fund- totaling C$500 million, and Ressources Qué-
Olivier Robert
project. in Québec?
ing available and facilitating infrastructure bec's C$500 million budget managed by In-
Québec is a province that is very rich in
projects has been essential. Another differ- vestissement Québec, which will both be tar-
While financing for early exploration is mineral resources and our job is to ex-
Grondin Sauvé
ent aspect is related to knowledge and re- geted at supporting the private sector.
difficult to obtain, how important is SO- plore all of them. With new technologies
search: during the initial plan, we realized
QUEM’s role in the market? and trends in the power generation mar-
that we had information gaps in terms of the What were the reasons behind the govern-
SOQUEM is investing money into projects ket, for example, the need for lithium will
biodiversity and the mineral diversity of our ment's acquisition of the railway and port
to help them survive in the current market. start to increase significantly and we need
mandated territory. We are actively engaging infrastructure of Pointe-Noire, in Sept-
We are not only funding exploration, but to be prepared for this demand escalation.
President and CEO universities and research centers to improve Îles? President and CEO
we are gaining interest in their properties, SOQUEM is also involved in one of the
SOQUEM our knowledge base in that sense. Moreover, The acquisition was related to the potential SOCIÉTÉ DU PLAN NORD
owning shares in the different companies. top REE projects in Québec, the Kwyjibo
since we are not currently within a mining we see in the Labrador Trough, where we
Our goal is to see those companies grow project in joint venture with Focus Graph-
boom, we can take more time in adequately have eight advanced projects in develop-
and succeed in their operations. ite. We are of course involved in more tra-
preparing the layout. We are strategizing is- ment, apart from the existing ones, which
ditional exploration for precious and base
sues such as access to territory, telecommuni- will be relaunched once the iron ore prices
How many projects can SOQUEM take metals, and we were also behind the dis-
22 cations, energy, and new technologies. come back. We could face the scenario of 23
on at the same time and what are the covery of the Renard diamond deposit,
having a regional production of 150 mil-
“ “
criteria for choosing partners? with Ashton Mining of Canada.
Could you further elaborate on the specif- lion mt/y, and for that we need proper in-
With our team, SOQUEM can work on 12
ics of “The Plan Nord toward 2035”, and frastructure in place. We took advantage of
to 15 projects per year, depending on their Since 2013, there has been a revival of
the “2015-2020 Action Plan”? the market context and Cliffs' exit to acquire
The revival of the Plan Nord has had scale. We aim to promote local Québec the Plan Nord. How has this impacted
The Plan Nord 2.0 is based on the sustain- the Pointe-Noire facilities at a very competi- We want the development of
a positive impact on our operations companies: in the last two years, we have SOQUEM’s operations?
able development triangle of economic, so- tive price, to prepare for that prolific future. Northern Québec to serve as a model
in terms of infrastructure. There are signed agreements with Adventure Gold The revival of the Plan Nord has had a pos-
cial, and environmental components. Our Moreover, we are also looking at ways of in- for other parts of the world that share
government initiatives to build more and Midland. For more advanced projects, itive impact on our operations in terms of
long-term vision will lead us towards our fi- creasing the railway capacity in the region as its characteristics, and we plan on
we will look at partnering with a mining infrastructure. There are government ini-
access roads to the North, which is nal 2035 objectives, but in the meantime, we well.
operator that will be able to bring the mine tiatives to build more access roads to the achieving that by pursuing a diversified
beneficial for SOQUEM and other have created a mid-term five-year action plan
into production. North, which is beneficial for SOQUEM mineral spectrum, in a responsible way.
exploration companies, as it opens new called the “2015-2020 Action Plan”. Within Would you like to add a final message to
and other exploration companies, as it
exploration areas with cheaper means this intermediary step, we have 90 items. The our readership?
How is SOQUEM contributing to sus- opens new exploration areas with cheaper
”
of transportation than a helicopter or a five main sectors of focus are mining, energy, Québec has tremendous development poten-
tainable development in Québec? means of transportation than a helicopter
floatplane. forestry, bio-agriculture, and tourism. tial, and this is a secure jurisdiction, open for
SOQUEM is applying the highest stan- or a floatplane.
One of the main mining-related economic ob- investments. There are many projects that
dards in our operations on the ground.
jectives is to promote the diversified poten- can be completed here, and for that to hap-
The mining sector is an industry where re- What are SOQUEM’s main goals and
tial we have in the province: nickel, cobalt, pen, we need financing and technology to
sources are not renewable, but are rather objectives for the short term?
”
zinc, iron, lithium, vanadium, graphite, rare adequately optimize them. We want to es-
replaceable, and thus conducting explora- SOQUEM has three advanced projects in
earths, gold, diamond, apatite –all these min- tablish partnerships with foreign investors,
tion the right way is the best strategy to be our pipeline for the rest of 2016, which
erals exist in the Québec, but traditionally, institutions, and companies. We want the de-
sustainable. are Moblan, Kwyjibo and B26. We hope
iron, gold, and sometimes nickel got all the velopment of Northern Québec to serve as a
to benefit from the hot lithium market with
attention of the industry. We want to put more model for other parts of the world that share
SOQUEM is improving the technologies the Moblan project, in partnership with
emphasis on elements such as lithium, graph- its characteristics, and we plan on achieving
that are being used for exploration ac- Perilya. For the Kwyjibo project, we will
ite, and vanadium, metals which are related that by pursuing a diversified mineral spec-
tivities. Can you elaborate on this? conclude the metallurgical testing. The
to fast-developing technologies. Stornoway trum, in a responsible way. We are seeking
SOQUEM aims at being innovative and B26 project will remain our main focus
Diamond’s Renard project represents a great to secure long-term off-take agreements for
continuously developing new technolo- in terms of diamond drilling. We are also
example of this new approach: as Québec’s mining companies, and to multiply the posi-
gies. We were directly involved in the de- conducting lots of grassroots fieldwork to
very first diamond mine, it will create many tive effects of the mining industry, by engag-
velopment of INFINITEM, a successful keep our pipeline of projects full and to
positive spin-offs for the Cree Nation, while ing in secondary and tertiary processing right
electromagnetic geophysical technique. generate our next drill-ready projects. ▬
having a minimal impact on the environment. here, in Québec. ▬
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