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Feature
CRITICAL
SHORTAGE
AS THE WORLD PUSHES TOWARDS A "CLEANER ECONOMY,"
GEOPOLITICS COULD GET IN THE WAY OF A STABLE PIPELINE
FOR THE MINERALS NEEDED TO MAKE THAT HAPPEN
large deposits of precious metals such as gold
and silver are found in "safe" regions such as
Canada, the United States, and Australia,
which means navigating the production
pipeline in countries where the rule of law
and other geopolitical risks are a concern.
Canadian mining companies still see
opportunities abroad. Indeed, Canada is
home to almost half of the world's publicly
listed mining and mineral exploration compa-
nies, according to Statistics Canada. About
1350 of these companies in Canada had assets
valued at $273.4 billion in 2020, a 3.7-percent
increase from $263.6 billion in 2019.
Of these companies, 730 had assets located
abroad worth $188.2 billion, up 4.3 percent
in 2019 and accounting for about two-thirds
of the total. Canadian companies were
present in 97 foreign countries in 2020, down
from 99 the previous year, with these assets
abroad accounting for about two-thirds of
the total value of CMAs.
"Companies like to be in stable juris-
dictions, but there is a shrinking pipeline
of those," says Amanda Linett, head of the
mining group of Stikeman Elliott LLP. "So,
there may be an appetite for greater risk when
AS THE "critical metals" race grows, there will
be an increasing focus on geopolitical risks.
e drive to find and develop mines in stable
jurisdictions such as Canada will also ramp up,
say lawyers experienced in mining law.
Climate change and the focus on ESG
concerns have prompted a massive focus
on base metals such as copper and critical
minerals such as lithium to keep up with
the demand for electric cars. Likewise, fewer
