In an interview with Canadian Lawyer, partner and head of Torys' Mining and Metals practice Michael Pickersgill addressed the different trends impacting Canada's mining landscape.
"In mining—and other natural resource industries such as fertilizer, oil, and gas—several factors drive the current deglobalization trend," Michael said.
"One is the shift in the world order and an increase in multipolarity. Another is that economic disparity is becoming a domestic political concern in every country."
Michael noted that, historically, resource nationalism in the mining sector has involved countries expropriating assets, refusing to grant authorizations to foreigners to develop projects, or the indirect nationalization of assets through significant tax-regime or royalty changes.
"Now, resource nationalism in the form of industrial policy is prevalent, and includes Canada's Critical Minerals Strategy," he added.
With ample resources throughout the country, The Canadian Critical Minerals Strategy aims to provide financial incentives and direct investment in the critical mineral industries. Michael emphasized the significance of this time, calling it a "once-in-a-generation opportunity to develop a whole series of assets."
Read: Q4 Torys Quarterly: A "critical" transition for the mining sector
Many jurisdictions have pivoted to creating vertical industries in an effort to develop, protect, and support their domestic resource production and processing.
Examining international trends, Michael shared that countries are also negotiating different tax regimes and changing laws to build vertical industries to benefit from the resource demand produced by the energy transition.
"They want the value-add processing components to be in their jurisdiction as well," Michael said.
"Because then they get the benefit of that work, those jobs, the tax that follows from that, and the development of a national industry."
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