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Mining considered key to building the new green economy – Business in Vancouver

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Copper mining, crucial to electrical technology, is among the top sectors powering the green energy revolution | sergeyryzhov/iStock/Getty Images Plus

The CEO of one of B.C.’s biggest copper mines believes the “ultimate death” of the carbon economy will fuel new investments in infrastructure and responsible mining projects.

“Fundamentally, I believe that we are in one of these once-in-a-century economic changes, and that’s fundamentally driven by the ultimate death of our carbon-based economy – which is a mature economy now – and the transition to a green energy economy,” said Gil Clausen, president and CEO of Copper Mountain Mining Corp. (TSX:CMMC), which operates Copper Mountain near Princeton.

According to Michael Goehring, president and CEO of the Mining Association of BC, this “once-in-a-lifetime pivot point” presents a significant opportunity for the province’s mining industry and broader economy.

“Mining as an industry is an exciting place to be right now,” he said during a panel discussion on responsible mining at the BC Natural Resources Forum last week. “Mining as an industry is being viewed as a solution.”

Metals and minerals such as those found in B.C. play a necessary part of economies’ transition to cleaner energy sources and more environmentally friendly products.

“Copper is a critical element in our transition to a global green energy economy. Wind turbines, electric vehicles and energy distribution systems all rely on copper, and we expect demand will continue to grow,” said Clausen, adding that Copper Mountain Mining is “fully committed” to that broader economic transition.

But miners’ ability to supply that transition with sufficient resources to meet demand is not without its barriers. The sheer length of time it can take to get a project approved, built and operating can restrict supply. Weak commodity prices can also erode the economic viability of resource extraction.

“We’re going to see a gap between supply and demand, and I think that’s going to be quite significant,” Clausen said.

At the time of writing, the spot price of copper was about US$3.60 per pound, according to Kitco Metals – around the highest price the metal has fetched in the last five years. Its 60-year peak was nearly a decade ago, at close to US$4.50 a pound.

“There are a lot of projects that are marginally economic, unfortunately, in B.C. right now with current copper prices, but we could really see that change overnight and wake up a few years from now and have $6 copper,” said Kelly Earle, vice-president of communications with Skeena Resources Ltd. (TSX: SKE).

Earle noted that there has been some global interest in B.C. copper projects. Last year, for example, Australia’s Newcrest Mining Ltd. (TSX:NCM) acquired a large copper and gold land package from Skeena Resources for $7.5 million.

“The key factor though is really going to be the price of copper,” she said.

In addition to supporting a climate-conscious pivot to clean energy, B.C. miners are looking inward, and focusing on reducing their emissions and environmental footprints.

Copper Mountain Mining has committed to achieving carbon neutrality by 2035, and is striving to be one of the lowest greenhouse gas-emitting open-pit copper mines globally in the next 10 years. This year, it will implement Phase 1 of its electric trolley assist project, to reduce diesel consumption.

Pretium Resources Inc.’s (NYSE, TSX:PVG) Brucejack Mine in northwest B.C. emits 0.05 tonnes of carbon dioxide equivalent per ounce of gold – 10 times below the average emissions of intermediate gold producers, said company president and CEO Jacques Perron. Pretium is testing battery-powered electric haul trucks to replace the diesel trucks it uses underground.

“Responsible mining, at the end of the day, for me it means that we care,” said Perron. “Responsible mining is making sure that we consider everybody, and we look at all possible ways to minimize the impact of our activities.”

Skeena Resources is working to advance the second chapter of the Eskay Creek Mine project, which previously operated as an underground mine powered entirely by diesel. This next phase is envisioned as an open-pit operation that will run on green energy, a transition made possible by a hydroelectric power station less than 10 kilometres away.

“We are leading the way in building an economy that runs on green power,” said Earle. 

hwoodin@biv.com

@hayleywoodin

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Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

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OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

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Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

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The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

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Trump’s victory sparks concerns over ripple effect on Canadian economy

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As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

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