Can you summarize the latest developments and challenges for the Québec Mining Association (QMA) and the mining industry in Québec in 2023?

2023 was pivotal, with two major challenges significantly impacting our industry. First, the forest fires up north were unprecedented. We worked closely with the government to mitigate the impact on mining operations. Some mining sites had to be evacuated and maintain essential functions with minimal crews. Secondly, there was a heightened enthusiasm for critical minerals, spurred by the Québec government's active promotion of this sector. However, this enthusiasm also brought the issue of social acceptability to the fore which, in turn, was the subject of two major consultation processes led by the government, one on the harmonious development of mining activities and the other on policy directions for land use planning.

The government published Bill 63, An Act to amend the Mining Act and other provisions, on May 28th. We have not finished our detailed analysis of all the proposed modifications. This will be our work this summer.

Hydroelectricity is another major issue—will we have the necessary electricity to transition, expand and develop new mines? With the expected changes in the Mining Act, do you anticipate Québec remaining a safe place for foreign investors?

According to the Fraser Institute's annual survey published in May, Québec ranks fifth in the world for attracting investors, highlighting strong investment interest here.

Early in 2024, the list of critical minerals in Québec was expanded from 22 to 28 critical and strategic minerals (CSMs), including high-purity iron ore, reflecting the government's focus on climate change initiatives. The Federal government followed suit in June.

There are many issues with this act. The main issue being the withdrawal from prospecting, mining exploration and mining operations of mineral substances situated in lands in the private domain and within urban perimeters. The QMA is concerned that this will make many areas unavailable, reducing the options for mineral development in Québec. The QMA will make the appropriate representations to the parliamentary committee in September. Do you anticipate more support at the governmental level for critical minerals projects?

Yes. Currently, there are 36 mining projects under the government's radar, based on data from February 2024. Whenever a mining project reaches the preliminary economic study stage, it gets on the map. Of these 36 projects, more than half are focused on critical minerals. So, mining development in this area is indeed advancing. How significant is the challenge of securing hydroelectricity for the mining industry in Québec?

It has become more pronounced, especially during the winter. The government, along with Hydro-Québec, is now selecting which projects receive electricity. Historically, Québec has had ample hydroelectricity, but the current energy transition, including the rise of electric vehicles, has saturated the system. In regions like Abitibi and the northern areas where mining is prevalent, the power lines are at capacity. This means that if companies want to expand or transition to low-fossil-fuel operations, they may face uncertainty in securing the needed hydroelectricity. There are plans to build new dams and optimize existing electricity production facilities to increase efficiency. However, not all projects will receive the power they need, leading to a competitive environment for hydroelectricity. Mining companies will need to include these considerations in their PEA and PFS. Can you discuss Québec's role in North America's decarbonization efforts and the vision for a circular economy to process resources locally?

We have significant lithium and graphite reserves, alongside emerging projects in rare earths and nickel. The potential reopening of the Gapsé copper mine by Osisko Metals indicates a growing capacity to produce more copper locally. This positions Québec uniquely to contribute to greenhouse gas reduction efforts both within and outside the province, thanks to our ability to supply high-grade materials. Furthermore, global companies increasingly prioritize sourcing materials from regions with robust ESG standards. Québec's stringent environmental regulations, once viewed as challenging, now enhance our attractiveness to such companies. What will be the catalysts ahead for the industry?

Looking ahead to 2025-2026, we anticipate a surge in new operations, with projects like Nemaska and Nouveau Monde Graphite nearing completion of construction on their processing plants and mines. While progress is evident, only a few mines have started operations in the past two years. But factors such as environmental authorization processes may influence timelines. Despite active exploration, the average of 0.7 mines starting per year underscores the distinction between claims and operational mines. Moving forward, a key priority for the Québec Mining Association is navigating modifications to the Mining Act, ensuring we represent and support the industry's interests effectively.