Abstract
Funding for mining projects has taken many forms over the years: accessing international capital markets, forming joint ventures and strategic alliances, and attracting foreign direct investment were popular in the 1980s. The 1990s saw a wave of debt financing. In the 2000s the advent of the special purpose acquisition company (SPAC) as a publicly traded company created for the purpose of acquiring or merging with an existing company was all the rage. Yet, as the need for critical minerals becomes, well, critical, governments around the world have stepped up to the challenge of funding mining projects like never before. In Canada Critical Minerals Infrastructure Fund (CMIF) launched at the end of November 2023, and Canadian mining companies are hopeful their projects will be selected for funding. With $1.5 billion available over the next seven years, this is a generational investment in the future of responsibly produced metals and minerals for the world.
Beyond Canada, federal governments worldwide also recognize the need for investment in the clean energy economy and domestic supply chains. In early 2021, the US funded the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) making almost $60 billion of grants, loans, and tax credits available to support the mining industry. These recognize the role of critical minerals in addressing resource security and enabling the energy transition. With some funding sources available to cross-border entities, this funding is intended to flow over the next 2-3 years. The crucial opportunity for Canadian mining interests is the opportunity to demonstrate the benefit of Canadian critical minerals to the US marketplace and access cross-border funding available through IRA and other funding mechanisms.
This presentation will look at how funding mechanisms have changed over time and will attempt to put the US and Canadian government programs into context as a generational investments into the industry.
Authors;
Glynis Middleton*, Resa Furey2, Cody Ryckman3, Emily Snyder 4
- Stantec, Edmonton, Alberta, Canada
- Stantec, Boulder, Colorado, USA
- Stantec, Calgary, Alberta, Canada
- Stantec, Asheville, North Carolina, USA