What is Desjardins’ presence in the mining space in Québec?

FC: Québec is the province where we have the largest footprint. Not only do we get the benefit of deploying our strategy at the local level, but we also have direct relationships with many participants in the mining ecosystem. There is a high likelihood that companies engaged in mining exploration and production as well as their employees are Desjardins members and clients.

MP: Our mandate is to deliver the resources of Desjardins and to back reputable management teams who can unlock stakeholder value through the discovery, development, and operation of strategic and critical mineral assets responsibly and sustainably. We match our capabilities with clients’ needs and serve groups that need access to capital markets to de-risk projects in jurisdictions with strong rule of law and track record of human rights. Québec is a de facto area of interest for us: looking at our mandate and Québec’s mining ecosystem, there is a natural overlap with our capabilities: we are focused on future-facing assets and projects that will have a net-positive economic and social impact on the province.

Can you discuss an exciting future-facing project you are currently working on?

CD: One of our most important relationships is with Sayona Mining. The company is North America’s first major producer of lithium, and is a prime example of the development of the battery supply chain in Québec and North America. We were closely aligned with them early on, advising them on the acquisitions and financing of North American Lithium and the Moblan project. We have also played prominent roles in multiple equity capital markets transactions that raised more than US$500 million of equity capital for investment in Sayona’s Québec assets.

In which commodity-led project do you see capital flowing in 2023?

MP: The “green” and “future-facing” materials are getting more eyes on them than ever, and this new interest has opened up new pools of capital. I think we will see good quality projects get financed but with more hype and interest around “future-facing” commodities.

CD: Lithium is going to be very interesting as there are projects advanced beyond permitting and engineering and ready for construction as far as investment is concerned. We also need to connect the chain between the electric vehicles and the rock, there is a lot in between, and the ‘in-between’ is where capital investment opportunities lie in 2023-2024. Capital is not just equity, so I think we will see a lot of equity and equity-linked structures and debt from foreign and domestic federal governments, the provinces, strategies, and asset management funds.

How attractive is Québec for mining investment in comparison with other North American jurisdictions?

MP: Québec is extremely attractive for investment. The framework is very transparent and is one of the few advanced “Tier 1” jurisdictions that are generally pro-mining. The province understands the importance of mining and is sitting on a significant opportunity to be a global hub for the future of de-carbonization and electrification of critical minerals.

Permitting is at the top of the list of concerns for mining firms. But Québec recognizes its leading position and we see the province as a leader in the evolution of the permitting process.

How important is a robust ESG strategy to attract investment?

FC: We have left behind the days of greenifying perceptions and reached the next stages where the action is required from all of us. As a financial institution, we already apply the lens of ESG to financing opportunities. We have taken a strong stance in the industry and wish to facilitate the transition towards a green economy through our actions in the market.

How will Desjardins continue to support mining firms in Québec?

CD: Québec is the epicenter of the future of the battery metals supply chain for the world, and we have a front-row seat in seeing that transition unfold.