How are changes to Québec’s Mining Act being received by AEMQ and the wider industry?

Québec’s Mining Act reforms were adopted in November following extensive consultations. While we were actively engaged in the process, we are disappointed with the final outcome, as the legislation introduces several unfavorable provisions. It removes more land from exploration, including private property and urban zones, even in established mining regions like Abitibi. More than 40% of the province is now affected, and areas with no exploration since 1988 are automatically excluded.

The law also increases regulatory complexity, introduces additional consultations, and grants broad discretionary powers to the minister, thereby increasing uncertainty. This is concerning, as mineral deposits are fixed, but investment capital is mobile. Unlike Ontario, which is streamlining regulations, Québec is heading in the opposite direction. However, the Ministry of Natural Resources and Forests has recently expressed a willingness to streamline regulations, and we remain engaged in discussions.

The legislation largely responds to concerns in southern Québec, where mining is less familiar and a surge in claim filings has sparked a backlash. While the reduction of speculative claims is a positive aspect of the new law, it is counterbalanced by new burdens, which negatively affect Quebec’s attractiveness for both critical minerals and precious metals.

How can public knowledge of mining’s benefits be improved?

Education is essential. People depend on products such as phones and electronics, all of which rely on mining. The current global trade climate has increased awareness of the origins of these resources. There is growing recognition of the importance of producing batteries and critical minerals locally, under stronger environmental and labor standards. It is vital to highlight that these materials come from mining and to emphasize the advantages of local production governed by strict regulations.

How is the regulatory environment continuing to evolve at the provincial and federal level?

Québec’s government has long recognized the province’s mineral potential. Yet, even as Premier François Legault called for accelerated permitting in March 2025, the recent reforms to the Mining Act have made exploration more complex. This apparent contradiction led the Ministry of Natural Resources and Forests to reopen discussions. We remain optimistic that aspects of the new legislation can be revised to ease regulatory burdens.

At the federal level, Mark Carney’s pro-economy and pro-finance position is encouraging. Now, there is alignment at both levels of government on the need to streamline processes and support economic growth. Canada must embrace mining while ensuring it is practiced sustainably.

What is driving heightened junior M&A activity in Québec?

There has been a delay between the rise in gold prices and improved financing for junior companies. While major producers have become profitable, juniors are only beginning to see financing conditions improve. Much of the capital entering the sector comes from generalist investors focused on returns rather than sector-specific dynamics. Given their higher risk profile, juniors are often overlooked by these investors. Despite favorable gold prices, junior companies remain underfunded – a situation we hope will soon improve. Some juniors see M&As has a means to become bigger and more relevant to investors.

In recent years, major producers have increased exploration spending, though primarily near existing operations. This approach helps sustain reserves but does not lead to new discoveries or the development of new mining districts. This global trend poses long-term risks to industry growth. To maintain momentum, either juniors must attract more funding to pursue greenfield exploration, or majors must expand their exploration efforts beyond existing sites. If gold prices remain high, juniors may have an opportunity to make significant new discoveries.

What makes Québec a great jurisdiction for exploration?

It all starts with geology and Québec offers exceptional geological potential for precious metals, critical minerals, and iron. The province provides a robust and accessible public database, supported by a strong ecosystem that includes organizations such as SOQUEM, CDPQ, and SIDEX, along with attractive tax incentives. Québec also benefits from a complete supply chain and a skilled workforce, enabling companies to operate entirely with local resources and expertise. At AEMQ, our primary focus is advocating for regulatory reforms to simplify the legislation, eliminate redundancies, and accelerate administrative and approval processes. We also continue to closely monitor gold prices and field activity. The remainder of 2025 promises to be eventful.