Evidence of meeting #26 for National Defence in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was mineral.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Mykytczuk  Executive Director, Goodman School of Mines, Laurentian University
Turgeon  Lawyer, National program Co-Lead, MiningWatch Canada
Exner-Pirot  Director, Energy, Natural Resources and Environment, Macdonald-Laurier Institute
Balsillie  Founder, Centre for International Governance Innovation, As an Individual
Boyd  Chair, Board of Directors, Agnico Eagle Mines Limited

11:50 a.m.

Lawyer, National program Co-Lead, MiningWatch Canada

Rodrigue Turgeon

It's important to note that some 50% of the world's mining companies are registered here in Canada, most of them in Ontario, where the TSX, the Toronto Stock Exchange, is located. That gives them access to all kinds of strategies and ways to optimize taxation and regulatory compliance. That's how it works. That's why we mentioned the conference of the Prospectors & Developers Association of Canada, the mining sector's largest international conference, which is being held in Toronto for those reasons. Just because companies are registered here doesn't mean they will ultimately serve Canada's interests. This is where we need to clarify the situation and ensure that the Government of Canada is more transparent about its understanding of foreign entities and foreign states that are identified as part of strategic and critical supply chains. The government has not done that yet.

You mentioned a few things the Minister of Finance said in 2022 about how some companies linked to the Chinese government had to cease their activities. This kind of measure has not become more common in recent years. That's why the government has to be more transparent and consistent with its critical minerals strategy. Otherwise, it will look like this strategy is just designed to accelerate mining projects to create wealth for mining companies, with no real connection to Canada's supply chain defence strategy.

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

We know that, from the moment the government decided to increase the percentage of GDP spent on defence, one of the first things it did was play with the existing categories. I'm not criticizing that; I see it as legitimate. Before increasing actual funding, the government started by adjusting categories so existing spending would be considered defence spending. In many cases, that's legitimate. I'm not disputing that. For the Coast Guard, for example, there are situations where that is completely justified.

You're telling us that this is also the case for gold. Is gold being lumped in with critical mineral extraction?

11:50 a.m.

Lawyer, National program Co-Lead, MiningWatch Canada

Rodrigue Turgeon

The mining and gold lobbies are exerting a lot of pressure. Let's not forget that gold is number one in terms of the value of minerals extracted in Canada. It accounts for about 20% of mineral output. The gold lobby is very powerful. Besides gold and natural resources, we have to consider the impact of increased military spending on the environment and the climate.

The Chair Liberal Charles Sousa

Thank you very much, Mr. Savard‑Tremblay and Mr. Turgeon.

I am going now to the five-minute round.

Mr. Kibble, I'll go over to you.

11:55 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Thank you, Mr. Chair.

Thank you to all witnesses for their opening statements.

Ms. Mykytczuk, I appreciate your comment about how Canada's strategic vulnerability is our processing capability. What steps should we be putting in place to make processing more feasible, specifically in human resources and building a skilled workforce?

11:55 a.m.

Executive Director, Goodman School of Mines, Laurentian University

Nadia Mykytczuk

Historically, Canada had a lot of that mainstream capability. Many of the major operators did a lot of processing, optimization and piloting. For example, Sheridan Park Vale, now Vale Base Metals, used to have over 60 personnel looking at different process optimizations and training the next round of metallurgists and process engineers. We've lost a lot of that capacity. Another Canadian example, Sherritt Technologies, recently closed their operations, with over 60 experts in process design and metallurgy also being let go.

Now is not the time to be closing these facilities. We should be very quickly establishing regional centres of expertise—much like Mr. Boyd said—and building on operations that already exist where we can leverage some of that capacity.

11:55 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

I want to quickly ask about waste and tailings.

There's a historical waste site on Vancouver Island, in my riding, with copper and possibly cobalt. You said something about efficient recovery. Can that be extracted and then left in a clean state when that process is over?

11:55 a.m.

Executive Director, Goodman School of Mines, Laurentian University

Nadia Mykytczuk

Absolutely. This is a huge opportunity for Canada with a very large inventory of legacy sites.

Consider that these are mineral resources already sitting at the surface. We have process knowledge to rapidly develop process flowsheets for these near-term materials. We could develop a lot of these tailing sites within five years, as opposed to a 15- or 20-year timeline for new mines. We should be looking to leverage the process knowledge within Canadian institutions to extract those reserves in the near term.

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Thank you very much.

Mr. Boyd, I want to speak to timelines for project approvals. We heard about a Yellowknife project the other day that was taking 14 years to get approval. We have oil and gas offshore prohibitions, and large protected areas, many under the 30 by 30 plan. What steps could be taken by the government to speed up the approvals process in this area that's so critical to our national defence?

11:55 a.m.

Chair, Board of Directors, Agnico Eagle Mines Limited

Sean Boyd

The challenge we face as an industry is the overlap of the approvals that are required and the sequential movement of files through the various regulatory approval bodies. Our approach would see the files go in and be reviewed simultaneously by many departments. That would help. I think we've seen moves in that direction going forward.

What was happening is that the federal overlays that came in at operations of over 5,000 tonnes a day or proposed operations of over 5,000 tonnes a day created a duplication. Essentially, we need to eliminate that duplication. Not only does it take time, but it costs money and uses up resources. I would start there.

11:55 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Mr. Turgeon, you said in your testimony that it was important we know what foreign companies are operating in Canada. I see that MiningWatch Canada is a lobby group founded in 1999. Are you still a registered lobby group?

11:55 a.m.

Lawyer, National program Co-Lead, MiningWatch Canada

Rodrigue Turgeon

We are not.

11:55 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

You are not a registered lobby group anymore. That's interesting.

With regard to foreign companies operating in Canada, who's the largest donor for your organization?

11:55 a.m.

Lawyer, National program Co-Lead, MiningWatch Canada

Rodrigue Turgeon

That's a good question. I would have to look at it. We can submit the information.

11:55 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

I can share with you that it's the United States-based anti-development, anti-commercial agricultural group the 11th Hour Project, which is funded by the Schmidt family group. That's outside American influence that's paying for some of the awards today.

You were advocating closing the door on seabed mining. Does that include oil and gas?

11:55 a.m.

Lawyer, National program Co-Lead, MiningWatch Canada

Rodrigue Turgeon

We're talking about minerals.

11:55 a.m.

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

You're open to oil and gas, but you're advocating that we don't do mineral seabed mining.

11:55 a.m.

Lawyer, National program Co-Lead, MiningWatch Canada

Rodrigue Turgeon

That's not what I said. The topic of today's hearing is about hardrock mining, I believe, because we're talking about criticals, but we're definitely not supporting oil and gas activities overseas.

Noon

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

On seabed mining in Canada, are you advocating for or against oil and gas mining in Canada?

Noon

Lawyer, National program Co-Lead, MiningWatch Canada

Rodrigue Turgeon

As I said, we focus on hard rock mining and oppose seabed mining. However, we certainly support all measures aimed at protecting the climate from the oil industry.

Noon

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Okay. That doesn't clarify it, but thank you.

Quickly, then, you also mentioned no use of nuclear power for defence-related projects. How would you contend that we power our defence-related projects, especially in the north? Would it be through carbon-based fuel or through windmills?

Noon

Lawyer, National program Co-Lead, MiningWatch Canada

Rodrigue Turgeon

For 27 years now, our organization has strongly opposed only one mineral substance, and that's uranium, given the risks it poses to local populations in terms of tailings and accidents, on both the—

Noon

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Is it specific to uranium mining? You said nuclear power for defence projects—

Noon

Liberal

The Chair Liberal Charles Sousa

Mr. Kibble, we're over time on this one. My apologies.

Noon

Conservative

Jeff Kibble Conservative Cowichan—Malahat—Langford, BC

Thank you, Chair.