The Manitoba Chambers of Commerce recently attended a Canadian Chamber of Commerce event in Winnipeg, which focused on the importance of natural resources to the Canadian economy. The event was moderated by Monica Gattinger, Founding Chair of Positive Energy at the University of Ottawa. The panel featured prominent Canadian business leaders:
- John Desjarlais, Executive Director of the Indigenous Resource Network
- Jeff Gaulin, General Manager of Corporate Affairs at Vale Base Metals
- David Hansen, retired President & CEO of Canterra Seeds
- Jeff Lawson, SVP of Corporate Development and Acting Chief Sustainability Officer at Cenovus Energy
The discussions highlighted significant concerns about Canada’s policies discouraging investment in natural resources, despite the sector’s large impact. Jeff Lawson noted that 50% of Canada’s exports come from this sector, generating $48 billion in tax royalties. Despite high levels of innovation, policy uncertainty has led to international companies divesting assets and leaving Canada. Jeff Gaulin emphasized that while Canada is a “mineral wonderland,” high extraction costs and access to capital remain major barriers, with typical mining returns being just 5% over 40 years, leading investors to look at other jurisdictions.
There was also a focus on innovation to increase productivity and sustainability. Jeff Lawson noted that the oil and gas industry has kept oil extraction costs at $8 per barrel for the last 25 years, despite CPI increasing by about 70% over that same timeframe. Dave Hansen added that agricultural innovation has led to increased output despite an 8% reduction in farmed acres over the last 20 years.
Indigenous partnerships were a recurring theme, with John Desjarlais pointing out that Indigenous groups are increasingly interested in becoming investors in projects. As partnerships evolve from mere stakeholders to active investors, overall project confidence increases. Upcoming Indigenous loan guarantee programs will help more communities take advantage of development projects.
Overall, the event underscored the need for stable policies, innovative practices, and strong Indigenous partnerships to grow Canada’s competitive edge in natural resources. If you are interested in learning more about the natural resource opportunities in Manitoba, register to attend the Manitoba Green Economy Forum on October 22nd at the Leaf. This forum will discuss several opportunities for our province and how you can engage in the green economy here in Manitoba.