Minister Hodgson declares the start of the ‘largest investment supercycle’ in mining history

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Photo by Brent Calver/PostmediaThe world is entering the “largest investment supercycle in the history of the metals and mining industry,” says Energy and Natural Resources Minister Tim Hodgson.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“Critical minerals are no longer simply industrial commodities,” he said at an event hosted by Canada House in London on Monday. “They are the inputs that will decide which economies can grow, which can compete and which countries will secure their economic futures.”This advertisement has not loaded yet, but your article continues below.Hodgson said that’s why the government made the Building Canada Act, which streamlined the regulatory process for large projects such as mines, its first “signature” piece of legislation.It’s also why it is hoping to pass the Building Canada Strong Act, a 240-page bill tabled in September that he said would create a process for major project approvals to be reviewed by one federal agency within one year.All this is necessary because the mining sector is unprepared to meet the growing demand for critical minerals and large supply gaps will soon emerge, he said.“Canada has extraordinary resources, but, historically, we may not always have been sufficiently competitive on the execution front,” he said, referring to the time it has taken for some projects to receive regulatory approval.An investment supercycle refers to a prolonged period of capital spending on new mines driven by a major shift in the global economy, with the last and best-known example being the industrialization of China that began around 2001 and lasted roughly a decade.Global commodity prices shot up and there were persistent deficits in materials as China built skyscrapers, rail lines and electrical grids.This advertisement has not loaded yet, but your article continues below.Under the current supercycle, Hodgson said critical minerals have moved from the margins to the centre of many countries’ industrial strategy and economic policies.Historically, he said companies sourced minerals and metals based on “cost and efficiencies,” but now they’re increasingly governed by concerns about export controls and geographical trade exposures, citing the conflicts in the Middle East and Africa rather than China, which has placed export restrictions on its rare earths at multiple times in recent years.Hodgson’s speech echoed themes similar to what Prime Minister Mark Carney declared in Davos, Switzerland, earlier this year, including that free trade and multilateralism are “being called into question.”Hodgson said the world is not short on demand for metals and minerals, but it is short on dependable supply, something Canada hopes to fill.In addition to streamlining the regulatory process, he said Canada has improved its relationship with Indigenous communities, which are now often partners in major natural resources projects.“We’ve crossed the rubicon to where we’re now working constructively,” he said.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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