Manitoba mineral exploration expansion key to ‘enormous’ potential: report

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This article was published 12/06/2024 (797 days ago), so information in it may no longer be current.

Before a green energy transition can occur, there must be exploration of minerals to support the change — and that’s lacking in Manitoba, an advocate says.

The Manitoba Prospectors and Developers Association released a report Wednesday highlighting the economic impact of mineral exploration in the keystone province.

“We wanted to show that the exploration industry in Manitoba has a footprint, and … it should be much, much bigger,” said MaryAnn Mihychuk, MPDA president.

Companies spent $176 million at 490 Manitoba vendors during exploration projects in 2022, the report found. Most of the money flowed to Winnipeg, Flin Flon and Snow Lake, though 50 municipalities received funds.

Exploration is different than mining, Mihychuk clarified: it’s a first step and it involves a smaller operation.

Explorers search for minerals. Often, they’re part of companies based outside of Manitoba — such as Toronto and Vancouver or Ireland and Australia, Mihychuk said.

She estimated 70 companies to be working on projects within the province. The number should be tenfold, she said.

“Manitoba’s geological endowment, its mineral potential, is enormous,” she stated. “There’s no doubt that we … can be a major player of supplying critical minerals.”

The province contains 29 of 31 minerals classified as critical for the transition to a green and digital economy.

Much of these minerals are found on First Nations land. The relationships between the exploration/mining industry and Indigenous groups need drastic improvement, Mihychuk flagged.

Just $1.3 million of the $176 million spent in 2022 went to Manitoba-based Indigenous businesses. Prospectors inked few contracts directly with First Nations communities and members, the MPDA outlined.

Generally, First Nations are hesitant to participate in mineral discoveries, Mihychuk said. There’s a history of mines scarring land and wildlife, and traditionally, such operations haven’t engaged First Nations people, making it difficult to do business now, she added.

Exploration itself tends to be “very light” and there are places for Indigenous businesses to make money, including as local liaisons and by providing lodging and fuel, Mihychuk said.

The relationship between the mineral industry and Indigenous communities in other provinces has been defined by court cases and constitutions, but Manitoba has been “slower” in improving the connection, she said.

Mihychuk hopes to see a resource revenue-sharing program similar to Ontario’s — First Nations with such agreements receive 40 per cent of the annual mining tax and royalties from operational mines.

“There’s going to be a need for a lot of economic development projects,” Mihychuk said. “This is a real opportunity for Indigenous communities that are within mineral belts to start developing the businesses.”

She’s calling for an update to the province’s Mines and Minerals Act — which was last reviewed in 2013 — and regular changes to match the industry’s evolution.

A road to Red Sucker Lake, which is estimated to be a site housing millions of ounces of gold, is on her wish list. Red Sucker Lake First Nation has opposed exploration of Monument Bay, a estimated gold site, in the past.

Economic Development Minister Jamie Moses did not answer whether such a road would be created or whether the Mines and Minerals Act would soon be revisited.

“Our government is making strategic investments and developing a critical minerals strategy,” he said in a statement.

The Manitoba Chambers of Commerce dispensed nearly $29,000 through the province’s Manitoba Minerals Development Fund for the report’s creation.

The project aligned with the fund’s goals, addressing the Indigenous supply chain and economic development opportunities, chambers communications director Clara Buelow wrote in a statement.

Manitoba’s Communities Economic Development Fund (CEDF) also backed the study. Chris Thevenot, the organization’s CEO, declined to say how much money it invested.

“A lot of people want mineral development, but they forget the role that exploration takes,” he said. “I think raising awareness is the biggest thing right now.”

In May 2023, the Manitoba government directed $1.5 million to the CEDF and the Mining Association of Manitoba Inc. for mineral development. Part of the CEDF’s mandate was to launch an education and advocacy campaign.

Half of all mineral exploration projects amounted to less than $100,000 in spending, the MPDA report found.

gabrielle.piche@winnipegfreepress.com