Article content
The Crawford Nickel Project is among more than 160 investments being showcased to global investors this week at the Canada Investment Summit, but the CEO of the company leading the development doesn’t expect a rush of money to flow into the mining sector right away.
Sign In or Create an Account
or View more offersArticle content
“Private capital is just getting comfortable again … in mining,” said Mark Selby, chief executive of Canada Nickel Co. “You’re not going to see three deals announced next week.”
Article contentWe apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.Article content
Story continues below
This advertisement has not loaded yet, but your article continues below.
Article content
Selby said that the message from critical-mineral executives at the summit will be that the Canadian government is serious about issuing permits and clearing paths for project development.
Article contentArticle content
He is hopeful the summit, which has attracted scores of officials from pension and sovereign wealth funds around the world, will start the process of reacquainting institutional investors with the mining space after years of permitting delays and community opposition to projects led them to limit their mining investments to companies that already produce cash flow or shift altogether to oil and gas.
Article content
“In three months and six months … (I think) you’re going to start to see more of these funds go: ‘Okay, yeah, you know what, we do need to think about allocating a little more capital (to earlier stage mining),” Selby said.
Article content
“Hopefully the conversations that are going to happen in the sessions with government and these offshore investors will reinforce that message of we really do want your capital to come into Canada to help build these projects out… It’s the first step.”
Article content
Even a small change in attitude toward mining could make a big difference.
Article content
Story continues below
This advertisement has not loaded yet, but your article continues below.
Article content
“These funds are so large that even a one or two percentage point shift in in asset allocation toward natural resources would feel like a tidal wave of capital coming at this sector,” Selby said.
Article contentRead More
- CRA to provide advanced tax rulings for companies looking to invest $1 billion or more, says Ottawa
- Ottawa approves Ontario nickel mine that could be western world’s largest
- Story continues belowThis advertisement has not loaded yet, but your article continues below.
Article content
Canada Nickel Co.’s proposal to build a mine in the world’s second-largest nickel reserve near Timmins, Ont., ticks a lot of boxes for the federal government and could resonate with global investors that have sustainability built into their mandates and who gravitate toward investments that can be held over long time horizons.
Article content
Large funds, including Singapore’s Temasek, whose chief executive, Dillan Pillay, met with Prime Minister Mark Carney on Monday, consider environmental, social and governance factors when they invest.
Article content
By 2029, the Crawford Nickel Project mine, which cleared a federal impact assessment in July, will produce high-quality, low-carbon nickel needed for electric car batteries and “green” steel and alloys, which are used in infrastructure, transportation and aerospace. The mine is expected to operate for more than 40 years and use proprietary carbon mineralization technology to permanently store carbon dioxide. It has the backing of the Taykwa Tagamou Nation, which is an investor in the mine.