The Decibel The ‘valley of death’ for Canada’s mining companies
Feb 12, 2025
Niall McGee, a mining reporter for The Globe and Mail, sheds light on the struggles of Canadian junior mining companies. He discusses the 'valley of death' phase, where projects face long permit processes and funding hurdles. The conversation touches on the importance of junior miners in critical minerals production and the impact of government policies on investor behavior. McGee also highlights the influence of foreign investments, particularly from China, and the potential shifts in funding strategies linked to the booming electric vehicle market.
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Canadian Mining: A Double-Edged Sword
- It's a good time for critical mineral mining due to government funding.
- It's also a difficult time to attract investment due to market pressures.
FPX Nickel: A Case Study
- FPX Nickel, a mid-stage company, discovered nickel in BC but faces challenges.
- Raising capital and navigating environmental regulations are key hurdles.
The Hurdles of Regulation
- Government consultations with First Nations and environmental assessments can take at least five years.
- These timelines often get extended due to unforeseen issues.