What is Ressources Québec’s role within the state’s mining industry?

Ressources Québec is a business unit of Investissement Québec charged with managing the C$1 billion Natural Resources and Energy Capital Fund, which enables the Québec government to acquire equity interests in energy and natural resources companies. We also offer an extensive array of financial products and solutions, including equity investments, debentures and various types of loans. We supplement private funding for projects that have favorable yield prospects and can help grow the Québec economy. We aim more specifically towards the mining, energy and forestry sectors where we act as a single point of contact for investors. We are willing and able to take risk when we believe the project has clear benefits to Québec's economy and is in alignment with our vision of what will drive the industry forward.

How does Ressources Québec select which projects to fund?

The three main criteria are its financial viability and profitability, the impact it will have on the economy, and whether it is linked to the Québec social contract. If you check all three boxes, Ressources Québec will be there. The alignment with our social contract is especially important. The beauty of our model is that we do not look only to financials.

What is your assessment of the current appetite for M&A among mining companies?

From a macro level, there is a need in the industry for consolidation in the market. Consolidation helps companies reach an optimization of resource, workforce, working capital and equipment capacity. One option is through M&A activity, and I believe we are seeing a peak in this behavior because people cannot find a way to work in partnership. When people are not interested in forming joint ventures, M&A activity becomes an attractive alternative.

Are there any challenges the industry is currently facing?

There is something going on where we have the equipment, financing, and a market hungry for more projects, but we lack the people to get the job done. We need to work collaboratively in the industry to find a solution to the labor gap. I believe more effective training as well as implementing technology could play a key role.

What other benefits are there to operating in Québec as a mining jurisdiction?

Québec is one of the world’s most promising regions for mineral resource exploration and development. It offers political and economic stability, regulations that govern each stage of development, diversified mineral potential, ample high-quality water and energy resources, and world-class infrastructure to transport and ship large volumes of materials around the world.

Additionally, Québec's mining system is linked to that in Ontario and in other parts of Canada. We are close to the US, and in half a day's travel by train you can arrive in Detroit, the heartland of North America's auto industry.

Lastly, Québec is involved in all segments of traditional mining, but we are clearly becoming one of the top hubs in battery metals in the world. We are directly linked to the North American industrial ecosystem, which is a position we will be keen to foster moving forward. We are also looking to integrate the full process of cell manufacturing, starting with mining. We are committed to doing this and have a clear strategy as well as the financial investment to bring this forward.

Looking at the next few years, which trends have the potential to reshape Québec’s mining sector?

The rush for strategic minerals, especially battery metals, is the most important push the industry has seen in at least a decade. Québec has everything it needs to set up a complete value chain, from ore extraction and refining, to battery manufacturing and recycling. It has an abundance of raw materials such as lithium, nickel, carbon (graphite), and copper, all of which are strategically important minerals that are essential for battery manufacturing as well as hydroelectricity, which guarantees clean production. We are seeing significant exploration, investment, and a ramp-up of capacity. For example, Sayona Québec acquired North American Lithium with the plan to restart production.