Mining in QUÉBEC As the province’s gold and iron camps witness a true renaissance, exploration in new areas unveils great potential in other commodities. TABLE OF CONTENTS Rediscovering a Vast Mining Territory ............ p48 This report was researched and prepared by Interview with Minister Serge Simard ............ p56 Global Business Reports (www.gbreports.com) for Gold Production in Québec .......................... p58 Engineering & Mining Journal. Base Metals ............................................... p64 Editorial researched and written by Alfonso Tejerina, The Abitibi’s Remaining Potential ................. p67 Clotilde Bonetto Gandolfi, Sarah Timson and Patricia Other Areas, Other Minerals .......................... p72 Matey Garcia. For further information, contact info@ Rare Earths and Strategic Minerals ............... p77 gbreports.com A New Day for Canada’s Iron Ore................... p86 Raising Funds in Québec ............................. p90 Cover photo: Canadian Malartic open-pit gold mine in A Hub of Engineering Expertise ..................... p93 the Abitibi (courtesy of Osisko Mining Corp.) Québec’s Services Industry ........................ p101 A REPORT BY GBR FOR E&MJ NOVEMBER 2011 Mining in QUÉBEC Mining in QUÉBEC Québec: Rediscovering a Vast Mining Territory The province is attracting fresh investments to traditional mining areas, as well as opening up the immense potential of the Greater North. Photo courtesy of Osisko Québec is a great place for mining, as its ArcelorMittal. Other large players, such as as the locals. If you add other areas where Fraser Institute ranking as the world’s top China’s WISCO and India’s Tata Steel, are exploration is restricted, 20% of the terri- mining jurisdiction for three years run- also present through partnerships in ad- tory is not accessible. That is a lot,” said ning bears witness. It fell to fourth place vanced exploration projects. The latest big Ghislain Poirier, President of the Québec in the latest survey, but is still considered news on the mergers and acquisitions front Mineral Exploration Association (AEMQ). a tantalizing location for a sector boast- was the takeover of iron ore producer Con- Pierre Bertrand, CEO of government- ing healthy growth figures. According to solidated Thompson by U.S.-based Cliffs owned exploration company Soquem, said: the Québec Mining Association (AMQ in Natural Resources, in a transaction valued “It would be great to have thorough stud- French), investments in exploration and at C$4.9 billion. ies done so as to confirm the inexistence development have increased from less Production of iron ore attributable to the of geological potential where a protected than C$1 billion in 2005 to C$2.5 bil- Québec province in 2010 was 17 million park is going to be created; however the lion in 2010, with expectations of reach- mt/y, an 18% increase year-on-year. Other sums needed for that would be colossal. ing C$3 billion by the end of this year. significant commodities on the metallic side Furthermore, the mining industry is not the The province has benefited from high include silver (4.1 million oz/y in 2010), only one that would be affected as other in- metal prices and mining exports in 2010 nickel (28,000 mt/y), zinc (201,000 mt/y) dustries could be interested in a particular amounted to C$6.8 billion, C$5.2 billion and copper (24,000 mt/y). territory, like the forestry industry. There is of which came from metallic mining. a need to accommodate the interests of ev- In terms of volume, it is gold and iron not number 1 anymore. Why? eryone and that is certainly a difficult task.” ore that steal the spotlight. Gold produc- The latest Fraser Institute’s Survey portrays The fact that in the past the Québec gov- tion has remained quite flat over the last Alberta, Nevada and Saskatchewan as bet- ernment has had to pay for the remediation years, between 750,000 and 900,000 troy ter places to do mining than Québec. This of abandoned mining sites has also prompt- ounces/y (810,000 oz/y in 2010); however is probably due to the hike in mining du- ed new demands from the general public the addition of Canadian Malartic in 2011, ties and the uncertainty over changes to for the mining sector to contribute more to a large open-pit mine operated by Osisko the province’s mining regulations. On their (a remarkable story of a junior company side explorers, who enjoy a very favorable becoming a large producer in a record pe- framework with some pretty unique tax in- riod of time), is already having a significant centives, point at a more restricted access impact on the province’s gold output, ex- to land as a negative trend. “The govern- pected to reach more than 1.1 million oz/y ment has defined a number of protected this year and roughly 1.4 million in 2012. areas to comply with international commit- On top of this, Goldcorp’s upcoming invest- ments, which is something we support as ment at Éléonore in the James Bay will also an association. The problem lies in the way bring an additional 600,000 oz/y. you do this. Currently, 9% of the territory is With regard to iron ore, the Labrador protected, but as an industry we have not Trough area, around the border of Québec really been consulted. A further 3% needs and Newfoundland and Labrador, is home to be defined as to comply with the 12% to an exploration and development frenzy, commitment by 2015, yet we hope that with all active players expanding their cur- this will be done in closer consultation with rent operations, including Rio Tinto IOC and the mining and forestry companies, as well Ghislain Poirier, President, AEMQ 48 E&MJ • NOVEMBER 2011 www.e-mj.com www.e-mj.com E&MJ • NOVEMBER 2011 49 Mining in QUÉBEC Mining in QUÉBEC Québec: Rediscovering a Vast Mining Territory The province is attracting fresh investments to traditional mining areas, as well as opening up the immense potential of the Greater North. Photo courtesy of Osisko Québec is a great place for mining, as its ArcelorMittal. Other large players, such as as the locals. If you add other areas where Fraser Institute ranking as the world’s top China’s WISCO and India’s Tata Steel, are exploration is restricted, 20% of the terri- mining jurisdiction for three years run- also present through partnerships in ad- tory is not accessible. That is a lot,” said ning bears witness. It fell to fourth place vanced exploration projects. The latest big Ghislain Poirier, President of the Québec in the latest survey, but is still considered news on the mergers and acquisitions front Mineral Exploration Association (AEMQ). a tantalizing location for a sector boast- was the takeover of iron ore producer Con- Pierre Bertrand, CEO of government- ing healthy growth figures. According to solidated Thompson by U.S.-based Cliffs owned exploration company Soquem, said: the Québec Mining Association (AMQ in Natural Resources, in a transaction valued “It would be great to have thorough stud- French), investments in exploration and at C$4.9 billion. ies done so as to confirm the inexistence development have increased from less Production of iron ore attributable to the of geological potential where a protected than C$1 billion in 2005 to C$2.5 bil- Québec province in 2010 was 17 million park is going to be created; however the lion in 2010, with expectations of reach- mt/y, an 18% increase year-on-year. Other sums needed for that would be colossal. ing C$3 billion by the end of this year. significant commodities on the metallic side Furthermore, the mining industry is not the The province has benefited from high include silver (4.1 million oz/y in 2010), only one that would be affected as other in- metal prices and mining exports in 2010 nickel (28,000 mt/y), zinc (201,000 mt/y) dustries could be interested in a particular amounted to C$6.8 billion, C$5.2 billion and copper (24,000 mt/y). territory, like the forestry industry. There is of which came from metallic mining. a need to accommodate the interests of ev- In terms of volume, it is gold and iron not number 1 anymore. Why? eryone and that is certainly a difficult task.” ore that steal the spotlight. Gold produc- The latest Fraser Institute’s Survey portrays The fact that in the past the Québec gov- tion has remained quite flat over the last Alberta, Nevada and Saskatchewan as bet- ernment has had to pay for the remediation years, between 750,000 and 900,000 troy ter places to do mining than Québec. This of abandoned mining sites has also prompt- ounces/y (810,000 oz/y in 2010); however is probably due to the hike in mining du- ed new demands from the general public the addition of Canadian Malartic in 2011, ties and the uncertainty over changes to for the mining sector to contribute more to a large open-pit mine operated by Osisko the province’s mining regulations. On their (a remarkable story of a junior company side explorers, who enjoy a very favorable becoming a large producer in a record pe- framework with some pretty unique tax in- riod of time), is already having a significant centives, point at a more restricted access impact on the province’s gold output, ex- to land as a negative trend. “The govern- pected to reach more than 1.1 million oz/y ment has defined a number of protected this year and roughly 1.4 million in 2012. areas to comply with international commit- On top of this, Goldcorp’s upcoming invest- ments, which is something we support as ment at Éléonore in the James Bay will also an association.