Frank Mariage, Partner, FASKEN
Fasken won the Natural Resources law firm of the Year in 2022. What was behind that success?
We have professionals involved worldwide, we are boots-on-the-ground, and follow our clients where they lead us.
Have there been any shifts in your client base in Québec in the past year?
Juniors have been active recently. Something new is working with Australian companies that are now implementing themselves in Canada to develop projects in the critical minerals space.
How do you assess the current regulatory environment in Québec?
Mining is one of the most regulated industries in the world. Now it is a question of approving projects that are necessary for the green transition, for everyone’s benefit. Overall, Québec-based clients are concerned about the regulatory environment and delays.
Are we in a ripe environment for M&A and deal-making in the junior space?
The environment is undoubtedly favorable for deal-making in 2023. Gold is above 2k/oz. If that were the case five years ago, it would be madness right now. We see financings getting done now, and this will likely increase. All the pricing about gold is not being reflected in gold projects. On the critical minerals front, I see more deals happening. We are also getting into the zone where M&As are becoming costly, which might put the brakes on a couple of things, but the amount and value of projects in that segment are still growing.
What will be the growth strategy for Fasken in the mining space in the next 12 months?
We have had tremendous growth since the pandemic. I would say growth will come from continuing to lean on our expertise in mining. A lot of emerging companies will become producers. We will accompany them and adapt our services to their needs. Legal services are more than writing contracts, it is also about being a strategic advisor and we offer that kind of council due to our extensive experience in various types of deals and projects.
Sander Grieve, Partner, BENNETT JONES
Can you introduce Bennett Jones and discuss what prompted you to open a practice in Montreal?
Bennett Jones has 500 lawyers and business advisors, and we are proud to be expanding into Québec with our new office in Montréal. It officially opened in May and is all about serving our clients where they do business and serving them with Québec lawyers. Representing miners between Vancouver, Edmonton, Calgary, Toronto, and Montreal is a big part of our activity. We help clients in the mining industry with the full range of services across issues that include capital markets and corporate matters, labor, international arbitration, regulatory, permitting and environmental issues, royalties, and other forms of secure financing. The mining industry and the Québec marketplace are exciting places to do business, so it made sense to be more available to clients in their backyard.
How do you assist the mining industry in Canada?
Explorers and developers are a big focus right now. These firms need the help most in terms of mobilizing talent, and financing to make material progress. There has been an underinvestment in the space for many years now. The focus on actual exploration is a big game of catch-up, and we think it will be a key area of focus in the coming months.
What will be the key trends in the mining space in 2023/2024?
The key trends we anticipate will be vertical integration, improvement in investment conditions, and infrastructure development. Integration leadership is being demonstrated through a variety of channels. The first is beginning through direct investment and offtaking relationships between vehicle and vehicle parts makers and miners. We expect these and other commercial relationships will flourish throughout the supply chain from exploration, development, mining, processing, component making, servicing through to recycling and redeployment of materials. Governments are expressing a new interest in improving the conditions for capital attraction. This is giving rise to tax credits to encourage investment, and going all the way an increasing commitment to streamlining permitting processes. Infrastructure development is crucial across the mining and critical minerals sector, as much of the industry relies on remote operations. Investments are being made by provinces and the federal government to support access infrastructure. We anticipate this trend will and must continue to support the development of the next generation of assets to fuel the energy transition.