Abstract

The current state of mining project development presents a myriad of challenges to overcome, many of which have financial implications on a project’s viability. Society’s push towards a green transition not only demands that more critical minerals be mined, but that those mining operations be decarbonized to the greatest extent possible. Electrically powered alternatives to conventional internal combustion engine mining equipment are available but powering them using fossil fuel generators is counter to their core purpose. However, extending grid power to increasingly remote areas requires significant infrastructure investment that can result in bloated project costs in an age of extreme capital scarcity.

Governments are aware of these challenges and have introduced grant programs to encourage both the development of critical minerals projects specifically, and the decarbonization of mine operations in general. Along with these mining-specific grants, other funding streams are available to encourage infrastructure development in remote areas of Canada and to build economic capacity in Indigenous communities. By exploring partnership opportunities with Indigenous communities and leveraging available funding streams, mine project developers can reduce their project’s capital requirements while facilitating the development of improved infrastructure that provides ongoing benefits to local stakeholders beyond the life of the mine.

This discussion will look at case studies where mining companies have leveraged available government grant funding to assess the technical and economic feasibility of electrifying mine operations, and pursue implementation of electrified mining operations. Leveraging government funding streams for the co-development of power infrastructure will also be examined, highlighting how this approach can result in generating business opportunities for local communities while reducing up-front capital cost requirements and ongoing operating costs for a mining project, improving the project's financial metrics. In addition to these case studies, a summary of the main governmental funding streams available at the time of the discussion will be provided.