Access to Land
Access to land is a cornerstone of mineral exploration. No available land means no exploration, no exploration means no discoveries, and no discoveries means no mining – a $109 billion direct contributor to Canada’s GDP and the centre of Canada’s Critical Minerals Strategy.Â
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Mineral exploration annual spending ranges from $22.4 million to $909 million across Canada’s provinces and territories. Jurisdictions must compete to attract these scarce but impactful exploration dollars in order to sustain the rate at which mineral deposits are discovered in their jurisdictions, and to benefit from the direct and indirect economic opportunities generated by these activities. While not every deposit is developed into a mine, the probability of discovering a mineable deposit increases with greater exploration activity.
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PDAC undertakes a range of research and advocacy with federal, provincial and territorial governments to create an attractive investment climate for the mineral exploration industry; one which will increase the probability that companies will discover deposits that could conceivably become mines one day. In addition, PDAC provides tools and resources to its members to help them explore responsibly and effectively.
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Land Availability
Canada’s geological endowment is one of our primary competitive advantages over other countries – so long as mineral rich (prospective) lands are open for exploration. The availability of prospective land, and the land required for related infrastructure, profoundly influences investment decisions made by companies. As land withdrawals remove accessibility to prospective areas, Canada becomes a less attractive place to explore, and companies go elsewhere.
PDAC and the mineral exploration industry understand that there will be times where the biodiversity or cultural values associated with a specific piece of land are so high that they must and should be withdrawn. Land use determinations must be based on scientific evidence, considering all of the information and perspectives necessary, including biodiversity, Indigenous and Treaty Rights, and geoscience, to make balanced decisions on diverse goals and values.
Land withdrawal decisions based primarily or even solely on biological data, without incorporation of socio-economic data (such as mineral and energy potential), can be detrimental to the growth of Canadian communities and economies.Â
Working with regional associations across Canada, PDAC advocates for land withdrawal decision-making processes that are: transparent, inclusive, evidence-based, holistic, adaptable, and adequately resourced.
Infrastructure
Remote and northern regions in Canada are rich in mineral resources, with the minerals industry acting as a proven, key private sector driver of economic activity in these areas. Due to the transportation infrastructure deficit in remote Canada, however, it is significantly more expensive to explore and mine. A 2015 study undertaken by PDAC with other industry associations found that:
- Exploration projects more than 50 km from a supply route have average all-in costs 2.27 times higher than non-remote projects (up to 50 km away).
- Projects in the most remote regions of the country have average all in costs 3 times more than non-remote projects.Â
- Capital costs for producing mines are up to 2.5 times more in remote areas. Operating costs are as much as 60% higher.
In part because of these infrastructure challenges, a 2016 PDAC study found that, of the almost 200 mineral deposits discovered in Nunavut, the Northwest Territories, and the Yukon, a staggering 85%, 69% and 77% (respectively) await development, as opposed to a national average for undeveloped projects of 61% (53% for those located below the 50° latitude line).Â
To capitalize on the economic potential of remote and northern Canada, PDAC has long recommended that the Government of Canada create an infrastructure investment bank that could help finance resource-development-related infrastructure projects in remote and northern Canada. We are very pleased that the Government of Canada, in its 2016 announcement, scoped its proposed Canada Infrastructure Bank to include projects that contribute to jobs and growth, and in 2023 announced creation of the Critical Minerals Infrastructure Fund.