Mining Association of Canada | 2023 Report

The Mining Association of Canada | The Canadian Mining Story: Economic Impacts and Drivers for the Global Energy Transition 2023 22 The cost of electricity is also a factor in some Canadian jurisdictions. Given the energyintensive nature of mineral processing, high-power-cost jurisdictions dampen the competitiveness of existing operations and deter future investment. Finally, the age of some Canadian operations, and their ability to meet potential regulatory requirements, also affects their viability. In the face of these factors, the downstreamCanadianmining industry risks being left behind. Recent smelting facility closures represent lost manufacturing capacity that will be challenging to reclaim. This is particularly relevant given the federal government’s recognition of how critical the stability and security of the mining and primary metal manufacturing ecosystem is to attracting advanced manufacturing investment. The projected need for large volumes of minerals and metals, specifically critical minerals, means that demand both domestically and globally will be high. With among the lowest carbon intensity nickel production in the world, Canada must signal that it no longer takes its smelting and refining industry for granted, nor the extractive supply chain that supports these critical mineral assets. Action to protect its competitiveness is essential to the low-carbon economy both in Canada and abroad. Supply Chain A robust, dependable supply chain with stable prices is a significant determinant for mining industry investment given the volume of mineral and metal products transported in Canada. Natural disasters, labour disputes, and pandemic related disruptions have all had a negative impact on Canada’s logistics network. The global supply chain is also strained from sharp swings in consumer demand during the pandemic and the knock-on impacts to land, air and sea freight. The costs to Canada of uncertain supply chains are high: reputational damage as a reliable trade partner; additional operational costs to businesses; and reduced confidence in Canada as a destination for business investment for supply-chain reliant businesses, such as mining. While the government is seized with economy-wide supply chain challenges, concrete solutions, such as legislative fixes to longstanding mining industry recommendations to address transportation network challenges, (see Rail section below) remain elusive. Rail Canada’s rail freight system is a duopoly, with limited choice for its customers. Communities and businesses are often captive to a single railroad serving their area. The number of rail service-related consultations and federal legislative measures in recent years reflect the persistent challenges faced by rail customers. The Government of Canada has passed the Fair Rail Freight Service Act, the Fair Rail for Grain Farmers Act and the Transportation Modernization Act. These pieces of legislation have made