International Trade Committee on May 2nd, 2024

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

One of the things that I had heard from the stakeholders was that earlier FedNor basically had to report to FedDev or somewhere else or Ottawa or whatever, but independence meant that there were more decision-makers in northern Ontario making decisions for northern Ontario, and I thank you for that.

Now, having said that, we've been talking a lot lately about EV batteries and the supply chains that have been announced, including just recently Honda with the largest announcement in Ontario's history. Can you explain to us the critical mineral strategy or what FedNor is doing with critical minerals in trying to unlock that potential for the EV battery supply chain?

[Lucie Perreault]

Yes. Thank you.

As high-growth sectors and the push towards a green economy drive demand for critical minerals, northern Ontario is uniquely positioned to become a global supplier of choice. FedNor recognizes that these large infrastructure projects—the mining developments, those pieces that are happening—are creating a really huge opportunity for communities in northern Ontario. As such, FedNor has played a key role in leadership, and continues to play a key role, in supporting those projects by providing access in a convenor role or by providing federal funding on its own.

There are challenges, infrastructure challenges, both environmentally and in electrification as well, but we support the commitments for large infrastructure projects like the Ring of Fire through building the capacity in the communities that are in the regions and in the areas. That could be through support for planning or it could be support for economic development officers to be able to work with the communities and to do that engagement. It's community capacity building and economic diversification through planning.

We also co-chair, with NRCan, the Canadian critical minerals strategy, the interdepartmental committee, in support of developing the strategies to ensure that these developments go well and that they advance as quickly as they can. We also support Ring of Fire or other large development projects by providing innovative money, if you will, for developments for industry, for businesses to be able to develop and be able to be part of that supply chain, whether that is at the beginning or whether it is at the end of the supply chain. We offer opportunities for them to be able to develop and be part of that role.

We've developed about $15 million or $16 million, even in the last couple of years, directly towards those types of investments, ensuring that the small businesses in our region can benefit from opportunities from those types of developments.

[Terry Sheehan, Liberal, Sault Ste. Marie, ON]

There are CFDCs, community futures development corporations, in Sault Ste. Marie, Sudbury and Thunder Bay. A lot of them have their own economic development corporations per se, but in northern Ontario, there are a lot of small towns.

Can you talk about the role that the the community futures development corporations have in communities such as Elliott Lake or Wawa, Ontario?

[Lucie Perreault]

There are 24 community futures development corporations across northern Ontario. They play a huge role in advising clients like small businesses and also in providing loans to those small businesses. They have a unique blend of hand-holding and of being able to do that analysis with them.

We have statistics that demonstrate that businesses that invested in community futures with community futures development corporations have a much more positive sustainability rate than businesses that haven't invested through the CFDCs. The community futures also support local economic diversification through strategic planning for the communities, and they are also able to provide advice on immigration and on all kinds of things. If they don't have the information the same way we do, we're pathfinders to be able to bring those businesses the support that they need in order to be able to advance. It's like a right arm, very useful and profitable.

[The Chair, Liberal, Judy Sgro]

Thank you very much. I'm sorry that I have to interrupt.

We have Monsieur Savard-Tremblay for six minutes, please.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Thank you, Madam Chair.

I would like to thank all the witnesses for their presentations.

Mr. Onalik and Mr. Walsh, at the end of April, the Canadian Northern Economic Development Agency, or CanNor, participated in a conference as part of the symposium on Nunavut mines.

Mr. Onalik, at the time, you felt that the government should take advantage of existing mining facilities to strengthen security in Canada's far north, particularly port and air mining infrastructure.

Let's agree that we still have to be vigilant when it comes to China's interest, in particular, in acquiring critical minerals and infrastructure in the Arctic.

We know that it wants to do so, and we know that it has a strategy in place that, in many cases, has been successful.

We also know that Canada is often used in many ways—and this committee did a study on this—as a flag of convenience for mining companies.

So there are foreign mining companies, often Chinese, that register as Canadian companies. It allows them to display the Canadian flag, when in fact they are not Canadian.

Aren't you concerned that it may be risky to partner with these private companies for strategic considerations as important as Canada's security in the north?

[Jimi Onalik]

Qujannamiik.

I would agree that it's a major consideration that a few years ago you might not have had to consider. One of the strengths of the resource development environment in the north is local control and local autonomy over a lot of decision-making. The point we were trying to make is that these are considerations that small communities need to consider as they make decisions about adjacent projects.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

The agency is therefore sensitive to this fear, to this danger.

Are there any checks and balances in place?

[Jimi Onalik]

I've been incredibly thankful. Before my role in my current position in the federal government, we've seen a dramatically increased presence of the RCMP, CSIS and other organizations meeting with communities and individuals to raise the issue. I think that's been a healthy dialogue there, for sure.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Are these oversight mechanisms sufficient?

Are they able to conclude that security is protected? Could a little something be added to it?

[Jimi Onalik]

I think that through the broader controls put in place by ISED and others, there are some safeguards there. My real worry is the advancement of projects that may or may not have economic reality to them and are raising expectations in communities and wasting time in a lot of ways. Making sure that communities are equipped to know who to talk to within the federal family to look at the projects in front of them with that lens is really important.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Have there ever been partnerships with private mining companies, specifically partnerships focused on activities related to government security in the north?

[Jimi Onalik]

The mining industry plays a huge role in security in the north. We had a recent example of hunters lost on the land a week ago. It is mining company helicopters that are out there and mining employees who are there.

The work that's under way right now to ensure that mining companies have a way to receive increased threat assessments from the Government of Canada and then have a place to respond to individual concerns is important.

Qujannamiik.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

So you're saying that mining companies are important partners for security. Finally, when it comes to security, you rely somewhat on the self‑regulation of these mining companies, rather than state power.

Is that what you're saying?

[Jimi Onalik]

No. We have a very structured environment. The Nunavut Impact Review Board, for example, within Nunavut, is able to apply a broader socio-economic lens. There is the opportunity.

The role that CanNor plays is convening the federal family to take part in these assessment processes, and it's definitely a lens that we want to find ways to bring to the table. The onus should not entirely be on individual companies to protect the national interest, but to be a part of the conversation.

Qujannamiik.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Okay.

Earlier, you talked about a problem that didn't exist 10 years ago but that we now have to deal with.

Another one is cyber‑attacks. Were you subject to any? We know how much this can affect supply chains.

[Jimi Onalik]

My previous hat was as secretary to cabinet in the Government of Nunavut. I have a bit of trauma from that experience. We were the target of two major cyber-attacks. We worked really closely with the CSE and the RCMP.

It's one area where highlighting the vulnerabilities and ensuring that people have literacy around cybersecurity are incredibly important. We've seen the potential for major disruptions in an already fragile environment in the north, and we can't have that.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We have Mr. Cannings for up to six minutes, please.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Thank you.

Thank you all for being here. It's very interesting.

I'm going to go to Mr. Onalik of the Northern Economic Development Agency.

I have limited experience in the north. I've never been to Nunavut. I've had a little time in the Northwest Territories and a fair bit in the Yukon. I have been in Inuvik in that period when the rivers are breaking up, when you can't get across on the ferries and you can't drive across on the ice, and as a result, there's no food in the restaurants in Inuvik except caribou. I've also spent a summer in Old Crow, where everybody ran down to meet the plane whenever it landed, just to see what food might be on there.

I'm wondering what your agency is involved with in terms of projects to develop land highways. There's the Mackenzie Valley highway project, but we also hear increasingly of the ice roads becoming less and less reliable. Very many communities in the north need that supply.

How much priority are you putting on something like the Mackenzie Valley highway project, which would connect the Northwest Territories from north to south, or south to north?

[Jimi Onalik]

Qujannamiik.

CanNor is in the proponent development business, and so many of these projects need to have a capable, strong proponent. To lead very complex infrastructure in the north is incredibly hard to do, so we see ourselves as being there to equip often smaller indigenous organizations to do that early engineering and early scoping work to be able to get to a point where we have a viable proposal to look at.

We've had conversations, primarily. Most recently, there's been a lot of dialogue around the Grays Bay road and port project, which would link that greenstone belt around Contwoyto Lake up into the Arctic Ocean, with a port there.

It's really important for us to make sure that we can meet communities where they are and make sure that with some of these national projects, we're able to help communities scale and find the right partners to advance the project.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Then is the project you mentioned more of a resource-based project rather than a connecting community project?

[Jimi Onalik]

It's a resource-based project with a community proponent. The regional Inuit association was previously trying to bring this project to fruition; they've now partnered with an exploration company. I think the goal is this: The closer you get road or rail to northern communities, the better it is for everybody. Using the financial and economic potential in that area to build up economies of scale and get that land link closer is important, I think.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Let's switch to the ocean, then. I'll talk to both of you.

My other connection to this is, very vaguely, through my family's history in Newfoundland. My mother's family was involved in the Labrador fishery, so there was a lot of Arctic exploration. This is way back in the day.

I'm wondering what the various advantages of the sealift are—say, from the east to the north versus through Churchill. What's the timing of that season, and how is that changing?

[Jimi Onalik]

The season is growing. I think it was last year when we saw a Woodward tanker in Iqaluit in December. That was a first. I think the real opportunity with the Churchill option is with the mine construction going on and the Government of Nunavut's plan to increase the amount of housing constructed. We found that the ships reliably coming out of the port of Montreal are full, so finding a second option and ways to get critical infrastructure built is important. Churchill provides a very interesting opportunity on that front.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Woelcke, I'm curious what your season is. When does Hudson Bay open up, for instance?