Natural Resources Committee on March 12th, 2021

[The Chair, Liberal, James Maloney]

I call the meeting to order.

I'm going to be a bit self-serving here and start by wishing everybody a happy Irish heritage month. It's the first Irish heritage month in Canadian history as of Wednesday, March 10, something in which I take great personal pride.

Welcome, everybody. Thank you for joining us today. This is the 16th meeting of the Standing Committee on Natural Resources.

Before I welcome all of our witnesses joining us today, I should thank some substitute members who are joining us today: Mr. Lauzon, Mr. McDonald and Ms. Falk.

We are going to proceed to our witnesses. In compliance with our motions that we passed at our last meeting, all of the witnesses have been sound checked; their headsets are working and translation services have been tested. Everything should be compliant, so we shouldn't have any difficulties.

On that note, to our witnesses, you are free to and encouraged to speak in either of the official languages. There is translation at the bottom of your screen for the benefit of others and for your own benefit. Make sure you have that accessible. We are doing this on Zoom. All of us on the committee are used to doing this now.

For our witnesses, sometimes it takes a little bit of patience, because there may be a delay particularly if translation is taking place. I would ask everybody to wait until the other person is finished speaking before answering or asking a question, as the case may be.

If you have any difficulties, please feel free to speak up. My job is to marshal us through the meeting, and I will give you advance warning. It often includes cutting you off if we go past the allotted time for your speaking slot, or for the time you've been allocated for asking or answering questions. I apologize in advance.

I would like to welcome our five groups of witnesses today. We have BMO Capital Markets, Cameco Corporation, Fonds de solidarité des travailleurs du Québec, Torngat Metals and Vale Canada Limited.

Thank you, all, for taking the time to be here today.

Each group will be given up to five minutes to make initial remarks. At the conclusion of the remarks from all of the witnesses, I will then open the floor to questions from committee members.

Why don't we follow the order on the agenda.

Mr. Bahar, from BMO Capital Markets, you may lead us off.

[Ilan Bahar, Managing Director and Co-Head, Global Metals and Mining, BMO Capital Markets]

Thank you, Mr. Chair.

Bonjour. My name is Ilan Bahar. I am the co-head of BMO Capital Markets' global metals and mining group in investment and corporate banking. Thank you very much for inviting me to speak with you today. We at BMO greatly appreciate the opportunity to take part in your committee's timely study.

As you know, mining is a cornerstone of the Canadian economy. The contribution of the minerals sector to Canada's GDP in 2018 reached $72 billion, or roughly 3.5% of total GDP. Mining provides employment for more than 626,000 Canadians, with 16,500 of those jobs held by indigenous people.

BMO has maintained a long-standing global leadership position in metals and mining, earning recognition as the best metals and mining investment bank by Global Finance Magazine for the last 12 years, including this past year.

Of equal importance, we are very proud of our efforts to contribute to Canada's increasing prominence worldwide in environmental, social and governance, or ESG, considerations. BMO was named the top North American bank in the Corporate Knights 2021 global 100 most sustainable corporations in the world, to mention just one example. BMO is also increasingly prominent in sustainable finance, including as joint lead manager on a five-year, $8-billion sustainable development bond issued by the World Bank. Just this past Wednesday, BMO announced its commitment to help and guide our clients drive economic transformation towards a net zero world.

I mention these items because ESG responsibility has emerged as one of the keys to the future success of the metals and mining sector, as we in Canada stand on the brink of once-in-a-generation opportunities. These are opportunities to create a new era of investment in mining and in emerging industrial and manufacturing sectors, to secure critical materials sources and bolster supply chains, and to boost Canadian competitiveness while taking a leading role in the transformation to clean technologies such as electric vehicle batteries, which are crucial to the net-zero economy.

Canada has the expertise in all facets of mining to tackle this defining challenge of the 21st century. We now have renewed commitment to this goal from the federal government, both in its revised joint agreement with the United States last month and in the Prime Minister's mandate letters to Minister of Natural Resources Seamus O'Regan and other ministers.

To move ahead, we believe we need to focus above all on two areas. First, government at all levels in Canada must commit to working together to streamline the regulatory process in the mining sector. In our view, a transparent, predictable and streamlined regulatory system that enhances collaboration among all levels of government is vital. When it comes to both the environment and foreign investment, BMO favours regulation that carefully balances business and economic realities with public concerns on conservation, public safety, national security and related issues.

Second, the government could look at the entire range of tax, regulatory and financial support programs to determine the most effective means of incentivizing investment in metals and mining in Canada. Would the government, for example, want to establish new federal funding to assist companies that are focused on the discovery and development of metals and minerals crucial to green technology advances or would it consider upgrading the mineral exploration tax credit and flow-through share incentives with the aim of making Canada a world leader in the development of critical battery minerals?

At BMO, we of course support the goal of harnessing our competitive edge in mining to accelerate the pro-growth strategy that former innovation minister Navdeep Bains called “mines to mobility”. Accordingly, we should recognize that our mining sector's ESG initiatives, which are widely recognized as the world standard, are increasingly attracting countries around the world seeking ethically produced critical minerals to enable their clean technologies. This, combined with the desire in many countries to obtain secure access to mineral supplies from jurisdictions with similar political and economic values, gives Canada a clear advantage as an optimal source for critical minerals in a post-COVID recovery. For countries that must secure a source of critical minerals to address climate change, Canada can and should be the answer.

With tax and regulatory regimes that encourage investment, there is no doubt that Canada has the entrepreneurial skills, the raw materials and the commitment to sustainable economic growth that can cement our global leadership in this valuable and urgently important sector.

Thank you for having me. I look forward to your questions.

[The Chair, Liberal, James Maloney]

Thank you very much, sir. I appreciate that.

Next up we have Mr. Austin from Cameco Corporation.

[Dale Austin, Head, Government Relations, Cameco Corporation]

Thank you very much, Mr. Chair.

Good afternoon. It's my pleasure to appear at committee today on behalf of Cameco Corporation to discuss critical minerals and Canada's role as a responsible source of these valuable commodities as we move to a low-carbon, post-COVID economy.

Headquartered in Saskatoon, Saskatchewan, Cameco is one of the world's largest producers of uranium for nuclear energy and is the world's largest publicly traded uranium company. We are uniquely situated with operations across the nuclear fuel cycle, including in mining, refining, conversion and fuel manufacturing. The majority of our operations are located in Saskatchewan and Ontario, and our total Canadian workforce stands at nearly 2,100 employees and long-term contractors. Cameco is a proud and important part of Canada's nuclear and critical mineral supply chains that deliver reliable, emissions-free electricity in Ontario, New Brunswick and around the world.

Canada's uranium and nuclear fuel sectors can play a significant role in underpinning economic recovery and the transition to net zero emissions by providing highly skilled, well-paying jobs; engaging suppliers in a wide range of skilled trades and expertise, and stimulating innovation in a variety of nuclear disciplines, including small modular reactors.

As we consider the role that critical minerals might play in Canada's economic recovery, it is important to note that Cameco is one of the largest employers of indigenous people in Canada. Beyond employment, roughly 80% of the goods and services used at Cameco's mines and mills in northern Saskatchewan, totalling nearly $4 billion since 2004, are procured from northern and indigenous businesses. Our success depends on the long-term, positive partnerships and mutual trust that we have built with the first nations and Métis communities where we operate. Further development of a critical minerals sector in Canada must recognize the importance of indigenous partnerships for future success.

A significant number of economic, energy, environmental and national security policies being pursued by the Government of Canada require critical minerals. Without access to these commodities, objectives related to net zero emissions, electrification and electric vehicle and battery manufacturing will be challenging to meet. It is imperative that critical minerals discussions are broadened beyond the rare earth elements that are usually associated with clean technology innovation, development and deployment.

Cameco cannot stress enough that uranium, given the significant role that it plays in fuelling zero-emission electricity around the world and its importance to the energy and national security considerations of many countries, is a critical mineral commodity. We were pleased to see it on the list yesterday by Minister O'Regan.

Current use of nuclear energy worldwide helps the planet avoid roughly 2.5 billion tonnes of emissions annually. We're very proud of our contribution to global greenhouse gas emissions reduction efforts, and our uranium facilitates the generation of clean, carbon-free, baseload electricity that will power the transition to a low-carbon economy.

Cameco is fully supportive of the work that's under way on the Canada-U.S. joint action plan on critical minerals collaboration, under the leadership of Natural Resources Canada. A continental approach to improving critical mineral security, minimizing the effects of state-owned players in the critical minerals space and ensuring the future competitiveness of Canadian and U.S. minerals industries should assist in attracting investment to Canadian exploration and mining projects, and spur job creation and economic growth post-pandemic.

Canada and the Canadian workers who drive our industry would be very well served by being viewed as the go-to supplier for various critical mineral commodities needed by the significant U.S. market. We look forward to working with NRCan and the U.S. administration to advance collaboration in this area. With operations on both sides of the border, Cameco has a deep understanding of the bilateral challenges and opportunities and is willing to share our experiences with officials from both governments if it would be helpful.

Canada's resource wealth has long been a major driver of the country's financial health, socio-economic well-being and job creation efforts. The addition of critical minerals to Canada's resource endowment will only enhance the resource sector's economic contributions and our reputation as responsible resource developers that meet the standards of ESG investors. Canada's economic prosperity is linked to our ability to responsibly and sustainably develop and export our abundant natural resources and the value-added products that use them.

We commend Canada's inclusion of uranium on its list of critical minerals. We ask that the committee recognize the sizable contributions that Canadian uranium makes towards domestic and international goals of cleaner air, energy security and a low-carbon economy.

Significant opportunities are available to ensure supply chain security for critical minerals and to enhance co-operation on initiatives that address climate change in Canada and the United States. We should position ourselves as the critical mineral supplier of choice for our largest trading partner and put in place policies and regulations that enable resource companies to benefit from that relationship.

Thank you for your time.

[The Chair, Liberal, James Maloney]

Thank you, Mr. Austin. I appreciate that.

Next we have Mr. Brosseau.

[Christian G. Brosseau, Vice-President, Investment, Strategic Capital, Energy and Environment, Fonds de solidarité des travailleurs du Québec]

Hello.

Mr. Chair, members of the committee, thank you for inviting me to speak to you today.

The Fonds de solidarité FTQ was created in response to the economic crisis of the early 1980s. Today, it is the biggest workers' fund in Canada, with net assets of $15.6 billion. More than 700,000 Quebeckers are Fonds shareholders, which is equivalent to one in six workers. For every dollar in federal tax credits granted to our shareholders, we invest $8.85 to support economic development and jobs.

The Fonds' investments primarily go to support companies that generate economic spinoffs both in Quebec and elsewhere in Canada. The Fonds is active in every sector of the economy, including mining and transportation electrification. Our investment portfolio also includes many companies in the value chains associated with the mining sector, as well as the activity sector seeking to decarbonize our economy. The Fonds has been investing in the mining sector for more than 25 years, irrespective of economic cycles. We are recognized for our expertise and our network of partners. The Fonds is investing in the mining sector, from exploration to processing, and in public and private companies linked to this sector.

With regard to critical minerals, we believe that governments have a major role to play. Governments are able to take on a higher risk than the Fonds can bear on its own. The development and processing of these minerals may require the involvement of strategic partners. Without targeted support from both the federal and provincial governments, it could be very hard to attract partners that have the technical expertise to develop these strategic projects.

Transportation electrification marks a vital turning point in balancing supply and demand for these metals. On top of that, there are also issues related to energy production and management. For instance, the auto industry is concerned about long-term access to the inputs needed to manufacture the batteries required for fleet electrification, and it is also concerned about the availability of charging infrastructure.

As a corporate citizen, the Fonds has the will and the duty to contribute to efforts to decarbonize transportation and the economy, in addition to taking an active part in the just energy transition through responsible investment strategies and social engagement.

The Fonds' strategy is to invest, and to support its partners, in the promotion of clean technologies or technologies that foster the adoption of processes capable of reducing greenhouse gas emissions. Processing our resources locally is one way to start achieving that objective. Creating an integrated value chain that goes from development to processing, as well as promoting environmentally friendly product design, recycling and the development of the circular economy, are essential for decarbonizing our economy while supporting the economic and social development of Quebec and Canada.

The Fonds has a significant impact on the economy as a whole. Year after year, in good times and bad, the Fonds accounts for a substantial proportion of the risk capital and development capital investments made in Quebec. The Fonds also bases its contributions on objectives that have real social impact by combining returns with inclusive long-term growth. In an economy where investors too often focus purely on financial returns, the Fonds has opted instead to develop responsible investment practices. The decision to invest in a company is based on an analysis of how that investment would impact its employees, the company itself and the communities where it operates.

In its ongoing quest for positive impact, the Fonds is now hoping to contribute to the most pressing priorities of the modern age by helping companies weather the monumental human, technology and energy transitions that define our era.

In conclusion, what we hope you will take away from our testimony today is that the Fonds is, above all, a major player, a responsible investor and an influential investor. The Fonds represents a vast network of partners and speaks for SMEs. The Fonds is also actively involved in the energy transition, the decarbonization of the economy, and the circular economy. In other words, the Fonds is a partner of choice. It is at the forefront of the circular economy and the decarbonization of the economy.

Thank you for your attention.

[The Chair, Liberal, James Maloney]

Thank you, sir.

Next we have Mr. Fung from Torngat Metals.

[Robert Fung, Chairman, Torngat Metals Ltd.]

Chair, committee members, panellists, good afternoon.

Let me begin by emphasizing that there's an opportunity for Canadian leadership in this vital strategic sector that we cannot afford to miss. I will focus on three topics: first, the opportunity to build a critical new industry in Canada; second, I will use the Torngat rare earth project in northern Quebec, which I chair, as an example of Canada's opportunity to be a global leader of an industry vital to the low-carbon economy; and third, the important actions that the government can take to realize this opportunity for Canada.

Rare earths are critical to enable the world to transition to a low-carbon economy. They are a group of 17 elements which are critical raw materials because of their technologically advanced and strategic end uses. They are used in lasers, medical scanners, emission-reducing catalysts, fibre optic telecommunications, ceramic capacitors—literally any technologically advanced piece of equipment. However, the most important use to get to a low-carbon economy is to manufacture permanent magnets for electric motors, wind turbine generators and even for the speakers in our smart phones. They are needed everywhere.

Electric vehicles use permanent magnet motors because of their higher efficiency and smaller size and weight. When Canadian auto manufacturers, in fact, all global manufacturers, commit to electrifying their vehicle platforms, they are creating an enormous demand for specific rare earth elements. Canada has the opportunity to develop our own secure supply of rare earths to support Canada's, the United States', and the world's demand for electric vehicles and to do so in an environmentally sustainable fashion.

Today, China supplies in excess of 80% of world demand. We all know that is not a geopolitically acceptable situation.

Torngat Metals is a Canadian-owned company, developing one of the world's largest rare earth ore bodies with the best mix of the particular rare earths needed to make permanent magnets. Torngat's deposits are located in northern Quebec, about 240 kilometres northeast of Schefferville. It is Torngat's strategy to prioritize environmental sustainability throughout all of its operations and emphasize consultation and collaboration with indigenous governments and communities on all aspects of the project.

The rock containing rare earths will be mined in a totally environmentally sustainable manner using wind power as much as possible and using the Lockheed Martin hybrid airships to transport the rare earth concentrate to Schefferville, then by rail to Sept-Îles and to the processing plant in the Bécancour industrial park between Montreal and Quebec City.

Producing the separated rare earth oxides is where the value is created, and Torngat is collaborating with world-leading technology partners to assemble the expertise needed to produce these specialty chemicals and to grow this expertise and related R and D in Canada. Torngat targets to produce cost-competitive separated rare earths in Quebec in 2025-26.

Rare earth projects such as Torngat's need support to get into production to meet Canada's needs and the industrialized world's needs, so let me offer four recommendations for Canada:

First, set a near-term deadline for NRCan and ISED to complete and publish their critical metals and rare earths strategy. Second, increase federal government efforts to collaborate with Europe, the U.S. and Japan on building new supply chains outside of China. Third, expand the criteria with existing NRCan and ISED programs to enable rare earth projects to qualify and apply for funding. Fourth, provide funding assistance for development projects to bridge the gap between early-stage development and construction financing.

These initiatives would make an enormous impact for these projects to get into production more quickly.

When I read a report of the Government of Australia's commitment to hardwire themselves into the global supply chain using access to their $1.3-billion modern manufacturing fund, and we, in Canada, have the natural resource, are an education nation with highly skilled labour and sit next to the world's largest economic and industrialized country, I can only implore Canada to step up. We cannot afford to miss this opportunity for our country and for our allies.

Thank you, sir.

[The Chair, Liberal, James Maloney]

Thank you, Mr. Fung.

Last but not least is Vale. I don't know who is going to be speaking first, whether it's Ms. Concepcion or Mr. Merlini.

[Juan Merlini, Head, Sales and Marketing, Vale Canada Limited]

Mr. Chair, thanks. I will start, and then I'll pass to Nancy.

Members of the committee, good afternoon. It's a pleasure to appear before you today and have the opportunity to address the important topic of how Canada can position itself as a key supplier and enabler of critical minerals with the global low-carbon transformation that is under way.

My name is Juan Merlini. I oversee the sales and marketing function for Vale's base metals globally. I am joined by my colleague Nancy Concepcion, who leads our marketing and research teams for the base metals business line.

Before we begin, we would like to acknowledge that we are presenting to you today from the traditional lands of the Anishinabe, Haudenosaunee, Huron-Wendat and Mississaugas of the Credit territories. Vale would also like to acknowledge the indigenous peoples whose lands we operate on in Manitoba, Ontario and Newfoundland and Labrador.

Vale is one of the world's largest integrated mining companies with global headquarters in Rio de Janeiro, Brazil, and a market cap of approximately $90 billion.

Our global base metals business has a rich 119-year history. It is headquartered in Toronto and has operations across five continents. We are present in Newfoundland and Labrador, Ontario and Manitoba. As one of the largest producers of high-quality nickel and an important producer of copper and responsibly sourced cobalt, we produce the metals that are critical to building a cleaner and greener future.

Our operations in Canada provide employment to over 12,500 Canadians. Our direct and indirect GDP contributions to the Canadian economy over the past decade have totalled $43.7 billion Canadian, which includes $12.7 billion in capital investments.

Vale Canada produces 97,000 tonnes of nickel, representing 51% of the country's nickel output. Vale Canada produces over 125,000 tonnes of copper, representing 23% of the country's copper output. Regarding other key minerals for the low-carbon economy, Vale Canada also produces over 2,000 tonnes of cobalt as well as platinum and palladium.

Vale shares the government's determination to decarbonize the Canadian economy and create a greener and healthier future for Canadians. We have set ambitious decarbonization goals for all Vale's businesses across the world. By 2030, our plan is to achieve a 33% reduction in GHG emissions, and by 2050, carbon neutrality. Our company has announced $2 billion to meet these ambitious goals, and we are already under way in defining projects to get us to this target.

These efforts have involved, and will involve, far-reaching changes. I'd like to highlight that Vale in Ontario has already spent $1.5 billion to clean the air we breathe. Our clean AER, atmospheric emissions reduction, project, was the single largest environmental investment in the history of Greater Sudbury and resulted in an 85% reduction in sulphur dioxide, a 40% reduction in metals particulate and a 40% reduction in greenhouse gas from our Copper Cliff smelter complex. Looking at the present and to the future, we are focusing our efforts on electrifying our fleet, switching our fuels from diesel to biofuels and exploring the feasibility of storing carbon in tailings.

Our GHG agenda is only one part of Vale base metals' broader effort to advance the environmental, social and governance performance of our company and our industry. Given the issues around critical minerals in other parts of the world, we believe the Canadian mining sector has a special responsibility to set the standard in building positive relationships with local communities and delivering benefits to indigenous partners and other stakeholders where we do business.

As we look to the future, we believe that Vale is well positioned to contribute to the development of the electric vehicle industry. Here in Canada, we produce three key base metals: nickel, cobalt and copper. All of them are important components of the EV supply chain, but meeting Canada's aspirations to be a player in this market will involve addressing some important issues.

Meeting the rising demand will be a challenge, particularly for copper and nickel.

We also need to develop strategic long-term relationships in key spaces, such as EVs, and this includes partnerships with leading academics, institutions, customers and OEM producers that support long-term and significant investment. These innovation and supply chain ecosystems are essential.

Coordination among government levels will also be very important, as the supply chain will need federal, provincial and local coordination to ensure that we can respond to this generational opportunity as efficiently and cohesively as possible.

Bringing new nickel, copper or cobalt deposits online is capital intensive and takes a considerable amount of time. Even in the most stable and favourable mining investment jurisdictions like Canada, it still takes at least seven to 10 years from the discovery of a viable deposit until you have commercial production

All of these highlight the need to have the greatest amount of policy certainty, permitting support, coordination and commitment from government, which are essential for success. Lack of attention with regard to the upstream and the necessary investment in the upstream aspects of the supply chain and related processing development will constrain the development of the EV supply chain in Canada.

We see industry, downstream manufacturers and all levels of government as partners, and in order for a North American supply chain to be developed and remain robust, we will all need to work together to make this happen.

I'll pass it over to my colleague Nancy to highlight the landscape for EVs.

[The Chair, Liberal, James Maloney]

I may have to stop you there because the time limit is five minutes per witness group. If you have something very brief to add, go ahead, but we're going to have to move into questions quickly.

[Nancy Concepcion, Executive Manager, Global Product Marketing Manager, Vale Canada Limited]

Thank you, Chair.

We have three key points that we can cover. One is that the EV industry has clearly passed a point of no return for the auto industy. Over $300 billion has been invested into the development of EV models, and battery producers have contributed roughly $130 billion of investment, so now is the time to see some significant investment in developing the resources to expand raw material supply.

The second point is that supply chains are already being localized. We've seen battery hubs growing across Europe, the U.K., Canada and the U.S.

The third abbreviated point is really that Canada is well positioned, and I think Juan covered many of the points, as have other committee members.

Thank you for that, and I'll turn it back to Juan for closing.

[Juan Merlini]

On behalf of Vale and our base metal headquarters here in Canada, we thank you again for the opportunity to appear before you today. We will look forward to any questions you may have.

Thank you.

[The Chair, Liberal, James Maloney]

Thank you.

Thanks to all of our witnesses. I think that's the first time I haven't had to interrupt somebody to get them to wrap up, so I'm grateful for that.

We'll move on to our first round of questions for six minutes each, starting with Mr. McLean.

[Greg McLean, Conservative, Calgary Centre, AB]

Thank you, Mr. Chair, and allow me to be the first to thank all of our witnesses here today who have provided a five-minute glimpse of their operations and of how we're going to move forward in this industry. It's very interesting.

My first question is for BMO.

Mr. Bahar, one thing we've heard in this committee before, which I'd like you to elaborate on, please, is how much of this industry is controlled by foreign actors around the world, foreign actors in particular who may not have Canada's interests at heart, and how Canada is lagging behind right now. We're looking at China. Benchmark has told us that China controls about 75% of critical elements. As a result, they can flood the market at times and limit the prices so that a lot of other smaller or developing mines very quickly become uneconomical.

Can you comment on that, please?

[Ilan Bahar]

Sure. I'm happy to. Thanks for the question.

It's great to hear that you've had folks like Benchmark come to speak with you, because they are experts in the field of supply and demand, and I think they would have great insights for the committee.

Admittedly, from where I sit, I don't spend a lot of time thinking about supply and demand in detail. Really what I think about is the capital markets, what investors are looking for, what investors think about, and also what companies are thinking about strategically from an M and A perspective.

I think the way I would come at it is that if parliamentarians, citizens, companies, or anybody has concerns about any particular jurisdiction with respect to its governance, its rule of law or its political system, it would make sense to have a public policy that supports greater extraction and production of clean energy minerals from a trusted jurisdiction like Canada. As I mentioned in some of my comments, I think the way we think about it is that there could, perhaps, be levers that could be pulled, whether they be tax, regulatory, funding, or otherwise that could incent domestic activity.

[Greg McLean, Conservative, Calgary Centre, AB]

Mr. Bahar, I'm sorry, but I have only limited time here.

[Ilan Bahar]

Sure. That's no problem.

[Greg McLean, Conservative, Calgary Centre, AB]

Thank you for that.

You talked about the regulatory tax tools we can use in this. How many of those, in your experience in the mergers and acquisitions space represent early funding from Canadian flow-through shares, for instance, Canadian exploration expenses, that then get taken out upon the M and A by a foreign actor? Effectively we're subsidizing, from a tax perspective, early development only to lose that development at later stages to an international player.

[Ilan Bahar]

In my experience, I think it is quite limited that it occurs that way. I think the flow-through truly drives exploration activity across a number of commodities. I think we've seen great benefits throughout the sector and the capital markets through flow-through.

I think a very limited amount of those flow-through dollars ultimately end up benefiting foreign entities. That would be my gut feeling response to the question.

[Greg McLean, Conservative, Calgary Centre, AB]

Thank you.

I'll move now to Mr. Brosseau.

Mr. Brosseau, can you please explain your organization's investment in Nemaska? At early stages, obviously, there were all the hopes of turning Nemaska into exactly what we hoped to accomplish, that is, having a value chain of lithium, and then processing lithium into higher value-added products as part of our battery supply chain. That of course has failed immaculately, and the Government of Quebec, through some of its entities, is going to invest another $600 million, as I understand it, into the re-formation of Nemaska.

Could you give us some background on that, please?

[Christian G. Brosseau]

I just want to mention that the Fonds de solidarité FTQ did invest in the Nemaska Lithium deposit, but as a minority shareholder.

Getting involved in the development and extraction of rare earth elements and critical minerals was part of our strategy of investing in the critical minerals value chain, as I said earlier.

As for the future of that entity, the Fonds has a very minor role to play. The Government of Quebec is really the one taking a leading role in the relaunch of the Nemaska mine.

[Greg McLean, Conservative, Calgary Centre, AB]

Thank you very much.

How much have you invested in it initially, since 2013?

[Christian G. Brosseau]

Unfortunately, I don't have that information on hand.

[Greg McLean, Conservative, Calgary Centre, AB]

Okay. Thank you.

I'll move now to Mr. Fung.

I really appreciate all that you're giving us here as far as our recommendations are concerned. As well, as for the developments that you're looking at in Nunavik, can you tell us how long it takes for mine development in Canada? How have those regulatory hurdles that hold back development in a jurisdiction like Canada changed and how could they be ameliorated so that we can get closer to developing these resources in real time?