The annual Prospectors and Developers Association of Canada (PDAC) took place in Toronto during early March, and E&MJ was there. It’s the largest annual trade show for the mining sector. The event brings together mine financiers, many of whom reside in the region, mineral explorers that have discovered ore deposits and the mining companies that will develop these deposits.

The mood seemed a little down this year despite record high prices for gold and high future prices for copper. The News section of this edition of E&MJ reports on several projects reaching production and others that have gained board approval to move forward. The mining industry is doing well, but many of the PDAC attendees have been focused on the hype surrounding battery minerals, which has suffered some short-term setbacks in the last six months. The tide will change and demand for all minerals will continue to grow.

Michael Stanley, lead mining sector specialist for the World Bank, reinforced that with his keynote, Mining Industry Outlook to 2050. He framed many of the changes we will likely see during the next 25 years. Rapid urbanization will continue as people seek to escape poverty, and the world’s population will grow from 8 billion people today to 10 billion. Roughly 25% of the population is currently under the age of 14, which indicates a tsunami of young people will enter the labor force, Stanley explained. Simultaneously, a major energy transition is expected to take place.

These market forces will create a tipping point in the minerals industry, Stanley explained, where the balance suddenly tips very heavily toward demand. Citing copper specifically, he said he does not view copper as a critical mineral, but he said he expects a 3%-3.5% compound annual growth rate with major demand peaking between 2030 and 2040. “We have to have in place 11 years from now all of the metals that are necessary for the energy transition,” Stanley said. “And, in an industry where the average time from discovery to production is 14.9 years, we are already inside a fantastic transition and the demand for metals is starting to climb.”

The time to make investment decisions is now. Mining investment will be enabled by economic and infrastructure development, and downstream investments, such as smelters. Rather than one mining company trying to go it alone, Stanley suggested multiple companies could consider development corridors. He also offered public-private partnerships to catalyze development beginning with energy because that is the driver. The governments are looking for energy access too. Companies should frame their mines as broad development drivers. These concepts also align with urbanization, which makes them more palatable for the public and policymakers.

Steve Fiscor, Publisher & Editor-in-Chief, E&MJ