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 3 Mining is essential to the global energy transition. Climate change is the critical issue facing the globe over the next century. Minerals and metals will help the world transition to a low-carbon future. Electricity networks to provide clean energy, electric vehicles, wind energy, photovoltaic solar cells, and battery storage all require mined materials. Canada fulfills the need for critical minerals better, using less carbon intensity, than most competing mining jurisdictions. We have one of the world’s cleanest electricity grids, with 82% of power from renewable or non-emitting sources. As a result, Canadian mineral products have among the lowest carbon intensity in the world. The economy of the future needs minerals and metals from Canada. To provide the resources that are required, Canada must create an investment and regulatory environment that works. Given the increasing demand for critical minerals for global carbon reduction, we need to bring new mines into production in the years ahead. Canada’s mining sector is a leader in the world. Canada’s mineral exports increased to record levels in 2021, making up 22% of Canada’s total merchandise exports. Investment in mining flows in both directions: Canadian mining companies hold assets in 96 countries, and have increased direct investment abroad to $106.1 billion. Foreign direct investment in Canada has also reached new highs: in 2021, it was $65.1 billion, which made up 6% of Canada’s total foreign direct investment. Free trade, investment and taxation agreements help facilitate the trade of mining products and investment flows. They reduce barriers for investment, enhance transparency and advance cooperation. Investment agreements, complete with dispute resolution mechanisms, provide mining investors with greater certainty over the investments that companies make in foreign jurisdictions. Part of maintaining Canada’s global leadership is ensuring that Canadian mining and supply sectors have access to modern and comprehensive trade and investment vehicles to meet the world where it does business.