Canadian Government Invests $3.5 Million In Clean Energy In Sudbury As Calls For Sustainable Mining Grows

The Canadian mining industry is one of the main contributors to the country’s economy. Canada is popular for the production of minerals and metals such as cobalt, potash, platinum, Uranium, gold, and silver among others. The country has been investing significantly in the mining sector and its policies are favorable for mining companies to grow. Canada is home to a large number of mining companies such as Barrick Gold Corporation (NYSE: GOLD), Teck Resources (NYSE: TECK), Agnico Eagles Mines Ltd (NYSE: AEM), and Kirkland Lake Gold Ltd (NYSE: KL) among others.

Canada investing in clean energy in mining

As the industry continues to grow there has been growing calls for sustainable mining and most companies have begun using clean energy. The government has been supportive of the mining sectors. Last week the federal government announced a $3.5 million investment for the advancement of clean energy technology in Sudbury. Sudbury is one of the most active mining regions in Canada that boasts around 15 active mines and produces almost 51,000 tons of metallic ore every day.

The investment includes $2 million funding of battery-electric drive systems manufacture FVR Research. The funding entails design, development, and testing of a 14-ton battery-electric drive to support underground mining activities. The other $1.5 million was allocated to Sudbury-based Mining Innovation Rehabilitation and Applied Research Corporation (MIRARCO). The organization will develop a Natural Heat Exchange Engineering technology (NHEET).

Canada mining industry to fill 80,000 jobs by 2030

Besides the challenge of moving towards green mining, the industry also faces a human resource challenge in the next decade. According to a report by the Mining Association of Canada, the industry will need to fill almost 80,000 jobs in the next decade. This is because there is a retirement wave coming to the mining sector where around 25% of the mining industry workforce is likely to retire.

The Mining Industry Human Resource Council indicates that the industry will need to fill 57,000 jobs of those retiring as well as new positions. The council states that the industry faces several human resource challenges in Canada as well as abroad. Equally the industry is grappling with the issue of brain drain for skilled workers whereby foreign mining companies are poaching Canadian workers graduates.

Matador completes $3.35 million private placement

In 2019 there was a hive of activity in the mining industry in Canada where there were a series of mergers and acquisitions, share placements and numerous investments. The latest company to complete a share placement funding is Matador Resources Co (NYSE: MTDR) for exploration study on the Cape Ray gold project in Canada. Matador managed to raise $3.35 million in funding through a private placement of its stock to various investors.

The company plans to use the proceeds of the funding to complete the scoping study for the availability of gold in the area. The company will complete the study this quarter assessing the possibility of having an open-pit mining operation at Cape Ray. Equally, they will use the cash in gold exploration activities.

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This article by Money News National is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Money News National has no position in the stocks mentioned. Thank you for reading.

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