Canadian and Australian Mining Companies Forge New Paths in “Coopertition”

In the face of an impending global energy transition, the demand for minerals such as gold and lithium is skyrocketing. Gold, a timeless asset, continues to hold its weight in the financial markets, while lithium, the “white gold” of the 21st century, is becoming increasingly vital due to its role in battery technologies for electric vehicles and renewable energy storage. However, the supply of these critical mineral is not keeping pace with the demand, leading to projected future shortages that could hamper the global green transition.

Against this backdrop, Canadian and Australian mining companies are emerging as key players in the global mining sector. These two nations, both mining superpowers in their own right, are not only supplying a significant percentage of the resources needed for the global energy transition but are also leading the industry’s transformation towards sustainability.

Canada, known as the ‘Lithium Central,’ has become a hotspot for lithium exploration and production, thanks to its substantial and relatively untapped resources. Similarly, Australia, with its rich mineral deposits and conducive investment environment, is attracting global attention.

However, the global mining industry is not just about competition; it’s also about collaboration, or what’s being termed as ‘coopertition.’ This concept is becoming increasingly relevant as the industry faces shared challenges, particularly around decarbonisation.

Canadian and Australian mining operators and innovators understand the need for a cooperative effort towards a more efficient, sustainable industry. They recognise that the goals of reducing the mining industry’s energy use, water use, and environmental footprint can only be achieved if all stakeholders sign up to a clear vision for the future and work towards it together.

One such example of ‘coopertition’ is the Andrew Forrest-backed Wyloo Metals, an Australian company expanding its operations in Canada with a focus on nickel and copper. Wyloo Metals sees Canada’s long-term potential to be a globally relevant producer of reliable and responsibly sourced battery metals.

Wyloo Metals CEO, Luca Giacovazzi, says “Canada has a once-in-a-generation opportunity to establish itself as a major player in the new economy,” Giacovazzi said. “Our proposed Future Metals Hub provides the cornerstone for a globally relevant battery material supply chain in Canada, while creating economic opportunities for local communities to thrive.”

Recent acquisitions and land purchases in the lithium space by Australian companies in Canada have been noteworthy, highlighting the strategic importance of Canadian lithium resources. Here are a few significant examples:

1. Mogul and Lithium and Rare Earth Elements (REE) Projects: Mogul has signed five agreements to buy majority stakes in lithium and REE projects across Canada and Australia
2. Lion Rock and Revell Lithium Project: Canadian gold‐copper explorer Lion Rock Resources has signed an option deal to acquire the Revell lithium project near Ignace, Ontario
3. Burley Minerals and Chubb Lithium Project: Burley Minerals completed the acquisitions of the Chubb lithium project in Quebec, Canada
4. Recharge Metals and Express Lithium Project: Recharge Metals acquired the Express Lithium Project in Quebec, Canada, located about 12km southeast of global lithium chemicals company Allkem’s James Bay deposit
5. Koba Resources and Lithium Projects: Koba Resources, an Australian resources company, significantly increased its battery metals portfolio with the acquisition of two lithium projects in Canada
6. Midas Minerals and Greenbush Lithium Project: Midas Minerals made its first move outside of Western Australia to take over the Greenbush lithium project in Ontario, Canada

These acquisitions underscore the growing interest of Australian mining companies in Canadian lithium resources as the world moves towards a greener future.

However, while Australian companies are looking to Canada as a key source of critical minerals, fewer Canadian companies have been investing in projects in Australia. This may be a reflection of a global mining and resources industry in transition, with older investment paradigms being challenged and new alliances being formed, particularly around resource supply resilience.

Despite these challenges, the shift in globalisation also represents opportunities for Canadian and Australian companies. As nations strive to be more self-reliant and work with partners with shared values, new relationships and alliances are being formed, creating new opportunities for investment.