It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Thursday, June 08, 2023
Hurtigruten Unveils Concepts for Battery and Sail-Powered Cruise Ship
Hurtigruten's cruise ship concept uses batteries and electricity with sails and solar power (Vard Design)
Coastal shipping company Hurtigruten Norway released the first designs for the company’s proposed zero-emission cruise ship. After identifying and studying the most promising emerging technologies, Hurtigruten and its partners are proposing a cruise ship that would use batteries, retractable sails with solar panels, and AI technologies. The goal is to launch the first vessel in 2030.
“Following a rigorous feasibility study, we have pinpointed the most promising technologies for our groundbreaking future cruise ships. We are committed to delivering a ship that surpasses all others in terms of energy efficiency and sustainability within just a few years,” said Hedda Felin, CEO of Hurtigruten Norway.
Designs for the cruise ship are the result of the first phase of the “Sea Zero” project launched a year ago by Hurtigruten and 12 maritime partners and the research institute SINTEF in Norway. They report that they identified what they view as the most promising technologies for future ships while noting that some of the technologies still require extensive research before commercialization.
The goal of the project is a small, custom-built ship that can operate sustainably on the Norwegian coast. Hurtigruten operates vessels along the coast between Bergen and Kirkenes making up to 34 port calls. The company has maintained the coastal service for 130 years since its inception in 1893. They view this design as the first step toward transforming the company’s entire fleet into zero-emission vessels.
The design concept developed in the first year of research calls for a 443-foot long ship that would have 270 cabins accommodating 500 passengers and operated with just 99 crew. The ship would also have a cargo hold and space to transport cars. A streamlined shape will result in less air resistance and reduce energy use. In addition to ample outdoor space, enlarged surface areas and windows will increase passenger comfort.
“We are developing the concept for the world’s most innovative cruise design and researching to find the optimal design methods suitable for zero-emission ships. The streamlined shape, with its innovative hull and propulsion solutions, not only reduces energy demand but also increases passenger comfort,” said Henrik Burvang, Research and Innovation Manager at VARD, the design and shipbuilding company participating in the project.
The design concept is for ships powered by electric and equipped with batteries that charge in port. Combining 60-megawatt battery solutions with wind technology, Hurtigruten says the vessel is expected to feature numerous firsts and improved solutions that do not exist on cruise ships today, including retractable sails with solar panels, artificial intelligence maneuvering, contra-rotating propellers, and multiple retractable thrusters. Additional technologies include air lubrication, advanced hull coating, and proactive hull cleaning.
The three retractable, autonomous wing rigs will comprise 1500 square meters (16,146 square feet) of solar panels and a total wind surface of 750 square meters (8,073 square feet), reaching a maximum height of 164 feet when fully extended.
Sail/solar panels would be retractable (Vard Design)
They also look to AI technology to improve the operation of the vessel including navigation and as a result, the bridge area is expected to be significantly smaller. Hurtigruten Norway expects through its current operations on the coast and the use of AI to collect data that learns the most efficient docking and undocking methods for each port, improving in port operations in bad or challenging weather. AI they believe will contribute to enhanced maneuvering.
One of the key challenges that they have to overcome through new technology is the power used in hotel operations. Their goal is to reduce overall energy consumption by 50 percent versus the line’s current ships while noting that half of a ship’s power can be consumed in the hotel area. Passengers will be involved in the energy-saving through the use of an interactive mobile app to monitor and control water and energy consumption.
The Sea Zero project is now entering a two-year phase in which the proposed technologies will be developed further and tested. Hurtigruten highlights that the current research and development phase focuses on battery production, propulsion technology, hull design, and sustainable practices that reduce energy use to an absolute minimum.
GEOLOGY
New Age Metals given $300,000 grant from Manitoba development fund
By Marilyn Scales June 7, 2023 White spodumene in a matrix of quartz and albite from the Eagle pegmatite.
New Age Metals photo
New Age Metals (TSXV:NAM; OTC:NMTLF) has received a grant of $300,000 from the Manitoba Mineral Development Fund. The money will be released in three, $100,000 installments for work done in the Winnipeg Rover pegmatite field. The work is part of a farm-in joint venture with Mineral Resources of Australia.
The development funding from the government is in addition to the $2-million preliminary exploration budget for 2023-24.
The summer field program is planned to better define historical documented showings and anomalous grab samples collected between 2018 and 2022, as well as to potentially locate buried LCT (lithium-cesium-tantalum) pegmatites. The main objective is to define and prioritize drill targets and bring additional projects to a drill ready stage in an effort to outline an economically exploitable lithium deposit in close proximity to Tanco mine on the northwest shore of Bernic Lake.
New age will share all information related to the project activities with the development fund and Manitoba government. The company will also account for all direct and indirect expenditures for the full amount.
Work planned for this summer includes bedrock mapping, property wide lithogeochemistry on potential drill targets, soil geochemistry using the mobile metal ion (MMI) process, and biogeochemistry where MMI cannot be done.
New Age has four lithium properties – South Bay, Northman, Mclaughlin Lake, and the flagship Bird River – in Manitoba.
A pegmatite is an igneous rock showing a very coarse texture, with large interlocking crystals usually greater in size than 1 cm (0.4 in) and sometimes ...
What is Pegmatite? Pegmatites are extreme igneous rocks that form during the final stage of a magma's crystallization. They are extreme because they contain ...
GEOLOGY
Solid results for Laurion from ore sorting at Ishkoday polymetallic project
After a pair of tests completed at the Saskatchewan Research Council, (Laurion Mineral Exploration )
By Marilyn Scales June 6, 2023 Mineralized sample from the Ishkoday gold and base metals project.
Laurion Mineral Exploration photo
After a pair of tests completed at the Saskatchewan Research Council, Laurion Mineral Exploration (TSXV:LME; OTC:LMEFF) is pleased with the way material from the historical Sturgeon River mine surface stockpile responded to sensor-based ore sorting. The mine is part of the Ishkoday gold-base metals project 28 km northeast of Beardmore, Ont.
Laurion president and CEO Cynthia Le Sueur-Aquin said the mineralization from the stockpile responds well to both laser and colour sensor-based sorting. Ore sorting is being considered for its potential to reduce downstream processing volume and costs.
The first test campaign treated samples based on their gold content. They were subjected to X-ray transmission (XRT) which sorts by difference in particle density combined. Laser illumination was also tested, which was the more efficient method. Laser illumination sorting upgraded the sample by 75% (from 3.9 g/t to 10.4 g/t) with a sorting efficiency of 74.4%.
The second campaign treated a large sample of stockpiled material after it was crushed and split. Material below 10-mm was screened out, reducing the volume by 50%. One hundred +10-mm particles were then selected at random for laser and colorimetric sorting.
A semi-empirical model for laser sorting indicated that 69% of the mineralization could be rejected while losing only 0.6% of the gold to the reject pile. The material was upgraded by 220% (from 2.63 g/t to 8.42 g/t), a result that exceeded expectations.
Comparable results came from the colorimetric test. The volume was reduced by 60% with a loss of only 0.94% of the gold. The mineralized material was upgraded 145% (from 2.63 g/t to 6.44 g/t) in the accepts pile.
The Ishkoday property includes several past producers, including the Sturgeon River mine, which produced 73,322 oz. of gold and 15,929 oz. of silver when it was active from 1936 to 1942.
Read the informative corporate presentation on the Laurion website.
A bigger vision for better use of the Earth’s resources
The mining sector requires constant innovation if it is to optimize production, lower costs, and, most importantly, improve safety for workers. Artificial intelligence (AI) and machine learning (ML) technologies can make a big difference and help businesses adapt even in the face of unpredictable events.
Veracio is a stand-alone entity, infused with Boart Longyear’s rich legacy of innovation, and sits at the intersection of technology and orebody science
Recently, Boart Longyear (the world’s leading provider of drilling services, drilling equipment, and performance tooling for mining and drilling companies) announced that its Geological Data Services division will operate as a separate entity called Veracio. The new entity is set to combine science and digital technologies in a single, integrated platform and help mining companies get more value from their orebody data faster, while mitigating the environmental impact of their decisions.
JT Clark, CEO of Veracio. Mike Ravella, chief innovation officer of Veracio.
Veracio’s technologies and platform, the result of a decade of testing and development in sensing, automation, and AI technologies, empowers miners to dig deeper into data, accelerating exploration and making better decisions that result in economically efficient operations and reduced waste. Powered by Boart Longyear’s award-winning Geological Data Services integrated technology platform, Veracio will support the growing global need for critical minerals by championing an approach to orebody science based on speed and sustainability.
Veracio’s (originally Boart Longyear’s) innovative in-field drill sample scanning system, TruScan, has been named “mining innovation of the year” at the prestigious Mines and Money conference in London, held in December 2022. This recognition highlights Veracio’s commitment to providing cutting-edge technologies that drive productivity and efficiency in the mining industry.
A few weeks ago, I caught up with Veracio’s newly appointed CEO, JT Clark (JTC) and chief innovation officer, Mike Ravella (MR), to discuss Veracio’s recent “graduation from Boart Longyear,” as Clark likes to call it.
VERACIO, A WHOLLY OWNED BOART LONGYEAR SUBSIDIARY, OFFERS MINING CLIENTS A RANGE OF SOLUTIONS THAT IMPROVE, AUTOMATE, AND DIGITALLY TRANSFORM THEIR OREBODY SCIENCES. CHAMPIONING A MODERN APPROACH THROUGH A DIVERSE PRODUCT PORTFOLIO BY FUSING SCIENCE AND TECHNOLOGY TOGETHER WITH DIGITAL ACCESSIBILITY, VERACIO LEVERAGES AI AND ADVANCED ANALYTICS TO ACCELERATE REAL-TIME DECISION-MAKING DRIVING EFFICIENCY IN MINERAL EXPLORATION AND MINING WHICH IS MOVING MINERAL RESOURCES FORWARD.
CMJ: To start the conversation, my first question to both of you is how did you end up in your positions as CEO and CIO of the new company?
JTC: For most of my career, I worked at BCG, a prominent consulting firm and in my most recent position, I served as the global leader of BCG’s mining practice. Six years ago, I shifted my focus to applying AI and advanced technologies to optimize mining operations, creating BCG Phosa, a real-time optimization tool for mineral processing covering the entire value chain. Although it has delivered significant improvements in production, we discovered that the accuracy and granularity of orebody knowledge were limiting factors. AI requires detailed and high-quality information to identify smaller differences and make finer adjustments and mining companies were not capturing sufficient detail about the orebody to support AI.
In my consulting work with Boart Longyear, I learned about the range of technologies under the Geological Data Services division and their ability to provide accurate and detailed orebody knowledge. I was amazed by their solution which had previously hindered my AI deployment work. With their technology, I also saw the potential to improve the production and recovery of critical minerals throughout the life of the mine. This is how I ended up at Veracio, this was a natural move for me, and I believe the products and services we offer are critical in driving accurate and detailed orebody knowledge for mining optimization.
MR: I am a hydrogeologist by trade, and in my background in contaminant hydrogeology, we used real time digital sensing for dynamic environmental site investigations to provide information about contaminant source areas and plumes. I worked in environmental and then mining related drilling for Boart Longyear. When I entered the mining field, I found orebody knowledge definition archaic in the mining space. After running several drilling businesses for Boart Longyear in the U.S. and then Australia, I started Geological Data Services from an idea for Boart Longyear in 2015 when we started to look at digital sensing and AI and applying it to mineral exploration and mining, and that is how Veracio started.
“I CONSIDER VERACIO A GRADUATION FROM BOART LONGYEAR. THE AI/ML-BASED TECHNOLOGIES UNDER THE GEOLOGICAL DATA SERVICES DIVISION HAVE MATURED AND DESERVE RECOGNITION AND ATTENTION OF THEIR OWN.” JT CLARK, CEO OF VERACIO
CMJ: So, what do you like most about your job?
MR: Working with a group of people and clients who truly believe and are 100% focused on changing mineral exploration and mining through digital sensing and AI and knowing that the work we are doing is providing critical mineral solutions for humanity.
TruScan in the field. Credit: Veracio
CMJ: Can you please talk to us briefly about Boart Longyear’s decision to operate its Geological Data Services division as a stand-alone entity called Veracio, what was the reason for the decision?
JTC: Boart Longyear is an ideal birthplace for the development of innovative technologies and capabilities for the mining industry. Developing such technologies requires a conducive environment, and Boart Longyear’s 127 years of experience in the most challenging operating conditions provide just that. I consider Veracio a graduation from Boart Longyear. The AI/ML-based technologies under the Geological Data Services division have matured and deserve recognition and attention of their own. Furthermore, technology development is a distinct business from drilling services, and it is essential to establish new processes for funding and operation to support Veracio’s technology objectives while working closely with the engineering and operating expertise at Boart Longyear. We are providing these technologies with an appropriate platform to grow and serve the industry.
MR: Boart Longyear is focused on providing safe productive drilling to the mining industry. At the end of the day, the product of Boart Longyear’s services and products is quality drill samples. Mining companies require these drill samples to understand the earth. A natural progression for Boart Longyear is Veracio, where we are focused on unifying orebody knowledge and giving mining companies information about the earth at high density in real time.
CMJ: Most people tend to not associate the mining industry with such things as advanced systems technology; however, in your opinion, how can artificial intelligence transform the mining industry?
JTC: This is a common misconception, as the mining industry has been investing in building advanced analytics and AI capabilities for some time now. However, compared to tech companies, the mining industry falls behind in terms of AI development. The reason is that mining poses unique and complex challenges that simplistic solutions of the first generation of AI were not capable of solving. AI had to continue to evolve and mature to effectively support the mining industry.
AI has already started to transform the mining industry and will continue to play a central role in its future. Primarily, this is because the world demands more critical minerals that the mining industry must supply, while at the same time mining companies must operate with a smaller carbon and environmental footprint. With declining head grades and increasing geological difficulty, new discoveries are geographically remote, more challenging to access, and often in challenging geopolitical environments. The traditional mining and exploration toolkits are ill-equipped to satisfy these demands. The mining industry significantly benefits from AI, as it equips them with the necessary tools to improve performance, automate processes in challenging environments without risking human lives, and achieve a higher level of accuracy and precision.
TruScan scanning core. Credit: Veracio
For example, mines that have been operating for decades have historically sent ore to waste that would now be considered economic ore. However, upcoming mining projects involve mines that might only have a 10- to 20-year mine life, are deep underground, and are hard to access. To overcome these challenges, the mining industry needs a more advanced toolkit that allows for more accurate, precise, and deliberate resource recovery. There is no margin for error, as valuable resources cannot be wasted and left in a pile for future generations to recover. They must be extracted today.
MR: I agree, and I see it growing more and more each year. It is clear that the future of mining will be very different from the past. Feedback and actions from early adopters and mining companies clearly define this.
CMJ: Can you please explain the role of AI and ML in improving mine safety?
JTC: Improving the understanding of the orebody and automating tasks using AI are two primary ways to operate more safely in the mining industry. By better understanding the structural geology of the orebody using AI, we can reduce the risk of bench failure and improve the quality of mine planning.
Additionally, by automating tasks that previously required human intervention using AI and other technologies, we can remove the person from dangerous environments and eliminate risk. For example, automating rod handling on drilling rigs which is one of the most injury-prone activities. By using AI to capture in situ geological information, we can reduce the number of times we have to handle rods, ultimately taking humans out of harmful activity.
Our goal is to reinvent workflows and activities that have been in use for decades and create safer and less vulnerable options.
MR: Digital sensing allows the mining clients to be bionic. They can work remotely and reduce exposure. The future mine site geologist will be far more accurate, consistent, and efficient. They will also be able to be on site less through digital sensing, software, AI, and ML.
CMJ: How can ML and AI maintain the operation and performance of mining machines using predictive maintenance?
MR: At Veracio, we utilize ML and AI to drive orebody discovery, definition extraction, and processing. Knowing what is in the ground and the parameters required to extract and process early and at high definition allows the mining company to make rapid decisions creating enormous value.
TruScan station. Credit: Veracio
CMJ: Finally, how can Veracio help its mining customers meet the unprecedented minerals demand that is fuelling the transition to a more sustainable economy?
JTC: Veracio’s primary mission is to enable (i) a bigger vision, facilitating the transition to electrification and a more environmentally friendly world; (ii) smarter data, providing the right information at the right time for informed decision-making; and (iii) a smaller environmental footprint, achieved by improving mine design accuracy, reducing the impact on the environment, improving biodiversity, and lowering carbon footprint.
As the demand for critical resources in the world increases, it is becoming harder to discover new deposits. To make new discoveries economically viable, increased precision is required, and the margin of error must be reduced. At Veracio, we do not just provide data but also analytical tools to support the next generation of accuracy, making decision-making more efficient and accurate, and enabling more efficient execution of mining agendas.
June 6, 2023 The cost of 100-ton trucks has hardly increased while their operating expenses have rocketed.
Credit: Navoi
Labour costs are replacing oil products as a mine’s most expensive item as inflation impacts operating expenses more than capital costs, new reports show.
Wages for some copper and gold mine employees in the southwest United States increased by around 10% in the last year and a half, helping raise hourly pay by 4% at unionized and non-union surface and underground metal and industrial mineral mines across the U.S., according to Costmine Intelligence, a unit of The Northern Miner Group.
The trend is part of 30% higher labour costs since the 2015 commodity bear market, Costmine vice-president Mike Sinden said in a recent interview. Barring another oil price shock, U.S. workforce costs are expected to be the fastest increasing element in a mine’s expenses, Sinden said. For open pit mines, he says labour could exceed half of their costs.
“As non-unionized labour gains bargaining power and union contracts roll off, we expect to see double-digit labour costs,” Sinden said. “That could really add fuel to the fire if energy prices stay strong.”
Labour costs are rising in Canada and the U.S. at a similar pace when accounting for foreign exchange. Until 2021, wage cost increases largely matched inflation at around 2% to 4%, but last year saw some pay increases of 5% to 12%, Costmine data show. Salaried staff saw similar increases.
Metso introduces sustainable battery black mass recycling
Battery black mass recycling is becoming an important means to complement virgin battery metals supply and to reduce the carbon footprint
By Canadian Mining Journal Staff June 7, 2023 A rendering of what a Metso hydrometallurgical black mass recycling plant might look like. Metso image
Battery black mass recycling is becoming an important means to complement virgin battery metals supply and to reduce the carbon footprint of the battery supply chain. To respond to these needs, Metso is launching an advanced sustainable battery black mass recycling process.
The recycling process complements Metso’s extensive battery minerals technology offering, which covers concentration and hydrometallurgical processing as well as related services.
Metso is eager to close the loop and extend the life cycle of the many critical minerals that go into batteries for electric vehicles of all sizes. “With Metso’s technology, the critical metals can be sustainably extracted from black mass and re-used in new battery production or in other applications. Recycling of black mass from batteries with Metso’s process can reduce up to 60% of embedded carbon compared to use of virgin materials,” explains Don Simola, director, battery chemicals technology at Metso.
Metso’s hydrometallurgical black mass recycling process enables the treatment of mechanically separated and shredded batteries for recovering battery raw materials like nickel, cobalt, and lithium, as well as manganese and copper. The process is based on Metso’s proprietary VSF X Solvent extraction technology and complemented with OKTOP reactors, Larox PF filters, dual media (DM) and LSF filters, and thickeners and scrubbers. Many of these technologies are part of Metso’s Planet Positive offering.
The process flowsheet can be tailored according to feed materials and desired end products with a possible phased approach for adding equipment also for the recovery of less valuable materials.
Metso VP, hydrometallurgy Mikko Rantaharju said that with the launch of the battery black mass recycling process, the company’s battery minerals value chain covers 90% of the end-to-end production process.
Clients will be supported in the design of the process with comprehensive testing and research from Metso.
Key considerations for mining companies and investors
Canada has long been an attractive destination for foreign investment, thanks in part to its rich natural resources, including its vast reserves of minerals and metals. These minerals are viewed as essential to Canada’s long-term prosperity, and Canada is eager to both grow and protect its mining industry. However, as the global geopolitical landscape shifts, Canada’s stance on foreign investment in its mining sector has also evolved. This consideration came to the fore in November 2022 when the Canadian government announced the blocking of three investments in Canada’s critical minerals sector. Given the current political and legal landscape, Canadian mining companies and non-Canadian companies who own Canadian mining assets or who are looking to invest in Canadian mining assets need to understand the complex Canadian regulatory landscape that applies to minerals and mining, and how it applies to a subset of minerals termed “critical minerals.”
What is critical?
In its Critical Minerals Strategy, published in 2022, the Canadian government provides a comprehensive summary of those 31 minerals considered to be critical minerals. These minerals have few or no substitutes, are strategic and somewhat limited commodities, and are key materials needed for electric vehicle batteries and motors, semiconductors, batteries, and other technology and energy related areas. Of the 31 critical minerals identified in the strategy, six minerals (lithium, graphite, nickel, cobalt, copper and rare earth elements) are prioritized for their distinct potential to spur Canadian economic growth.
The strategy aims to position Canada as a trusted and reliable supply of responsibly sourced and sustainably produced minerals, while also recognizing the strategic value and importance of critical minerals to Canada’s own national security and the importance of bilateral cooperation with allied countries. The five core objectives of the strategy are (i) supporting economic growth, competitiveness, and job creation; (ii) promoting climate action and environmental protection; (iii) advancing reconciliation with Indigenous Peoples; (iv) fostering diverse and inclusive workforces and communities; and (v) enhancing global security and partnerships with allies.
The strategy addresses six areas of focus for meeting the objectives of the strategy, namely: (i) driving research, innovation, and exploration; (ii) accelerating project development; (iii) building sustainable infrastructure; (iv) advancing reconciliation with Indigenous Peoples; (v) growing a diverse workforce and prosperous communities; and (vi) strengthening global leadership and security. The strategy focusses predominantly on developing value chains (as compared to the traditional focus on supply chains), from exploration and extraction, to processing and manufacturing, to product use and recycling.
Investment Canada Act – national security reviews
The Canadian government has many tools to achieve its foreign policy objectives, including the Investment Canada Act (ICA), which is Canada’s primary legislation for overseeing foreign investment into Canada. The ICA’s stated purpose is to review significant investments in Canada by non-Canadians in a manner that encourages investment, economic growth, and employment opportunities in Canada, while also reviewing all investments into Canada that could be injurious to Canada’s national security. While the ICA assesses foreign investment in several ways (including reviewing significant investments into Canada that exceed high financial thresholds to confirm that they are of “net benefit” to Canada), for critical minerals, the key review regime now is the government’s ability to conduct national security reviews of foreign investments.
National security reviews are conducted at the government’s discretion and assess whether an investment could be, as mentioned above, “injurious to national security.” Governmental guidance indicates that all investments by state-owned and state-influenced enterprises (SOEs) will be subject to enhanced scrutiny, regardless of the size or value of the investment, and such SOE investments will be scrutinized even more if they involve investments in critical minerals or energy, with the government cautioning parties to identify any potential connections to “SOEs or entities linked to or subject to influence by hostile or non-likeminded regimes or states.”
Following in the footsteps of this guidance, in November 2022, the Government of Canada announced that it had conducted national security reviews of a “number of Canadian companies engaged in the critical minerals sector, including lithium” culminating in orders that three foreign investors, each based in China, divest their interests in the following three TSXV-listed Canadian lithium exploration companies:
1. Sinomine (Hong Kong) Rare Metals Resources (Sinomine) was ordered to divest its “past and ongoing investments,” including a 5.7% minority interest, in Power Metals Corp., a company with lithium and other mineral assets in Ontario. Sinomine also had an offtake agreement in connection with these assets. In December 2022, Power Metals announced that Winsome Resources agreed to acquire Sinomine’s voting shares in Power Metals and its interest in the offtake agreement, with a nominee director replacing Zhiwei (Frank) Wang, the vice-president of Sinomine.
2. Chengze Lithium International Limited was ordered to divest its “role and interest” (including 19.35% minority interest) in Lithium Chile Inc., a company advancing a lithium property portfolio in Chile and Argentina. Importantly, Lithium Chile does not have any mining operations in Canada.
3. Zangge Mining Investment (Chengdu) Co., Ltd. (Zangge) was ordered to divest its 14.17% minority interest in Ultra Lithium Inc. Ultra Lithium is an exploration and development company focused on acquiring and developing lithium, gold, and copper assets with interests in a brine lithium property in Argentina, hard rock spodumene type lithium properties at Georgia Lake-Forgan Lake, Ont. Zangge also had an agreement with Ultra Lithium which included US$50 million in payments and investments related to Ultra Lithium’s lithium exploration project in Argentina for a 65% stake in the subsidiary owning the Argentinian property. Ultra Lithium has since disclosed that Zangge and the company agreed to terminate this investment agreement.
The Canadian government provided no specific reasons for the divestiture orders, including not specifying any factual determinations made about the investments that influenced the government’s decision to make these orders, and the orders themselves were kept confidential. There is additional uncertainty as to what was considered in determining that Lithium Chile’s assets implicated Canadian national security, since the mineral properties are located outside of Canada.
Given the number of Canadian companies operating in foreign jurisdictions, as well as the mineral richness of areas such as the “Lithium Triangle” of Chile, Argentina, and Bolivia, it is of note that the Canadian government is willing to extend its reach into those jurisdictions through the nexus of Canadian public companies. Unsurprisingly, TMX Group Inc., the owner and operator of the Toronto Stock Exchange and TSX Venture Exchange, was critical of the government disrupting the flow of capital to exploration companies without providing some replacement for that funding.
How Bill C-34 further changes the foreign investment landscape
On Dec. 7, 2022, the Canadian government proposed several amendments to Canada’s national security regime through the introduction of Bill C-34: An Act to amend the Investment Canada Act, which will further strengthen the government’s ability to conduct national security reviews under the ICA.
The most notable change for the purpose of this article is an amendment requiring pre-closing filings for investments in Canadian businesses engaged in activities in prescribed business sectors if the investors will acquire control of a Canadian business or part of a Canadian business (such as through a director appointment right). The investment cannot be implemented until the government confirms (explicitly or implicitly) that there will not be a national security review, or the national security review is terminated. While the prescribed business sectors have not yet been identified, we expect that critical minerals will be subject to this new pre-closing filing requirement.
The requirement to file investments pre-closing, including minority investments, represents a significant change. Currently, pre-closing national security reviews arise in acquisitions of control of Canadian businesses that exceed certain financial thresholds and in investments where investors file voluntarily to obtain pre-closing certainty. The proposed amendments are broad, with the potential that minimal investments into Canadian companies or their subsidiaries may compel notification if
> the targets have critical mineral interests (or other interests identified by the government);
> the investors obtain access to or can direct the use of material non-public technical confidential information or assets; and
> the investments include any measure of control (e.g., director appointments).
Further regulatory guidance from the government is needed to clarify when this obligation will apply. In the interim, companies involved in critical minerals should be aware that the proposed legislation risks potential months-long pre-closing review processes for investments where no filings were previously required. Depending on the scope of the regulations and any accompanying guidance, these amendments risk adversely affecting the flow of foreign direct investment into Canadian mineral companies.
Conclusion
The Government of Canada has broad powers when it comes to assessing foreign investment into Canada, which will be strengthened under the proposed amendments to the ICA. Further, the government has demonstrated a willingness to use these powers in the context of intervening with foreign investments related to critical minerals. While mining companies are no strangers to dealing with regulatory requirements, companies operating in the critical minerals space soliciting foreign investment now must contend with new risks associated with potential Canadian national security reviews. Canadian critical mineral companies looking to obtain funding or investment and non-Canadian companies looking to invest in Canada’s critical minerals sector should seek expert advice in the early stages of any funding or investment process to identify and consider regulatory deal risks and strategic options.
SASA JARVIS is a partner, mining, capital markets, and securities, at McMillan LLP. BETH RILEY and JOSHUA CHAD are partners, competition, antitrust, and foreign Investment, at McMillan LLP. RAVIPAL S. BAINS is a partner, capital markets and securities, at McMillan LLP.
Why government transparency matters for B.C.’s mining sector
UBC study recommends updating government transparency strategies
The government of British Columbia is determined to improve transparency in the mining sector. Mining companies and communities are preparing for a surge of activity to meet the metals and minerals demand for green technologies. This means a flood of information will be inundating government employees covering a range of issues, including deposits, job creation, permits, waste, consultation, and water and air quality.
A team of graduate students from the University of British Columbia (UBC) are recommending a citizen-centric approach for the online presence of the B.C. ministry of energy, mines, and low carbon innovation. The team of four studied the “B.C. mine information” website and supporting infrastructure, comparing it with mining hubs in Canada and abroad that share similar socio-political conditions. Expert interviews in Queensland, Australia, served a key role in their findings.
The UBC student team with their faculty advisor during field research in Brisbane, Australia. From the left, in the back is David Deen and Jackson Porreca, and in the front is Nehal Gupta, Dr. Nadja Kunz, and Julia Basten. Credit: David Deen
Government’s role as information provider
The study found that governments are often at risk of dumping highly technical data on the public. These efforts aim for transparency, but can lead to confusion among diverse audiences in practice.To combat this risk, an accessible ecosystem is needed to ensure citizens can make informed decisions about mining in their communities. B.C. ramped up transparency efforts following the 2014 tailings dam failure in Mount Polley. The disaster challenged public perception towards the industry and regulation in the province. Efforts continue within the government to increase the reliability of information presented, and determine the appropriate level of synthesis.
Premier David Eby emphasized the importance of equity in information sharing in his 2022 mandate letter to the minister, and it is central to the B.C. mining strategic plan.
The government aims to be a neutral and objective provider of information. Although the burden of earning a social license to operate rests largely with mining companies, the government must ensure citizens have a complete picture of mining’s value and risks. They must also be certain the flows of information remain relevant to all interested parties.
Using Queensland as a guide
The UBC team interviewed experts in Queensland, Australia, across various professions connected to mining, and all were given anonymity in the study. Several experts throughout the state said that effective information sharing prioritizes public needs, which relies on community engagement and openness.
According to one expert, although the bulk of mining information originates from mining companies, the government is the most trusted distributor of information.
Multiple experts who worked with mining communities in Queensland said the information provided to public audiences is often not representative of a “spin-free narrative.” While the government aims to curate and simplify complex and technical information, this simplification risks not being perceived as neutral and objective. This perception challenges transparency.
Tools for transparency
Queensland, Australia presents a strong case for meeting the needs of diverse user groups through distinct online portals directed towards general and technical audiences. Websites were found to be easy to navigate and full of timely information.
The state shares information about mining through a website hosting three platforms. It caters to the general public through the following:
> a balance between high level information and an interactive spatialized map interface;
> change management;
> links to other databases
> video tutorials guiding users; and
> a dedicated help center.
This format of information sharing, tuned to specific audiences, contributes to transparency and public trust in government as an infomediary.
Bird’s eye view of Eskay Creek project in northwestern B.C. at sunset (2021). Credit: Skeena Resources
Next steps for B.C.
British Columbia is expanding its information sharing efforts through its mine information website and Mines Digital Trust, a dedicated portal for information disclosure about industry. It is an innovative first step directly targeting the public.
Similar to Queensland, there are opportunities in B.C. for these tools to provide the content sought by diverse audiences. There is also room to connect and integrate with other platforms like CleanBC, which are effective at communicating citizen-centric information in the context of the province’s emissions reduction plans.
Communities are empowered when they can access information which is relevant to their needs, up-to-date, and well-communicated.
As B.C. prepares for an increase in mining activity, the time is right for the government to develop a digital ecosystem which is reliable and trusted.
David Deen, Nehal Gupta, Julia Basten, and Jackson Porreca are graduate students at the School of Public Policy and Global Affairs at the University of British Columbia. Their full report is expected to be made public in May 2023.
CBLT acquires historic Falcon gold mine
CBLT Inc. (TSXV: CBLT) purchased the former Falcon gold mine adjacent to its Copper Prince property along the Garson fault in Ontario
Site of the Falcon gold mine between patented and unpatented Copper Prince claims. CBLT image
CBLT Inc. (TSXV: CBLT) purchased the former Falcon gold mine adjacent to its Copper Prince property along the Garson fault in Ontario’s Sudbury Basin. The Falcon property is sandwiched between CBLT’s three patented and its other unpatented Copper Prince claims.
The Falcon property has been explored intermittently since 1900. A 2005 report filed by Millstream Mines said over 850 metres of diamond drilling had been conducted there over time. CBTL said some of the historical data appears to be reliable, but there are gaps as some exploration was unrecorded. The company has been unable to find any production data associated with the property.
The Bailey report, compiled by Gordon Baily for Falconbridge and published in 1996, is perhaps the most reliable information. The report highlighted two pyrite-rich surface samples (50.47 and 53.21 g/t gold) and three pyrite-rich dump samples (33.60, 3833, and 40.46 g/t gold). The work and the report are not compliant with Ni 43-101.
Subject to the qualifications set out above, Bailey included a resource estimate at Falcon. In 1988, Falconbridge completed a 24-hole, 4,560-metre drill program which increased the mineral inventory of the Falcon deposit to 53,975 tonnes grading 7.75 g/t gold in a pyritiferous zone traced to a vertical depth of 180 metres with an average dimension of 3.35 by 30.5 metres.
CBLT intends to carry out a program of data aggregation, mapping, and sampling at Falcon this summer.
Although under construction at press time, the CBLT website is at www.CBLTinc.com.
Eramet has opened an office in Chile, it said on Monday, as it looks to develop lithium production in South America to supply battery makers.
The office, whose role is to “support future technical and commercial operations”, will be mainly focused on business development and exploration, it said.
Eramet is due to start lithium production next year in Argentina in partnership with Chinese steel group Tsingshan, and has said it is interested in studying other potential sites in a lithium-rich zone of South America that also includes Chile.
South America’s lithium deposits are drawing intense interest as makers of electric vehicle batteries look to secure supply chains. The European Union sees raw materials as a key issue in talks over a trade deal with the Mercosur bloc of South American countries.
Eramet, which is 27% held by the French state, is the world’s leading producer of manganese, and a major nickel supplier.
At home, it is among companies exploring geothermal extraction of lithium in the Rhine basin around the French-German border, and is also studying a battery recycling project with environmental services group Suez.
Securing supplies of battery materials like lithium is a key priority for the French government, which is funding projects by Eramet and other firms such as Imerys.
(By GV De Clercq and Gus Trompiz; Editing by Benoit Van Overstraeten)
