Could you summarize EY’s work with the mining sector in Québec and Atlantic Canada?

EY delivers a comprehensive suite of services tailored to the unique needs of mining and metals companies in Québec and Atlantic Canada. I lead our assurance services including financial audits, ESG reporting, and the evaluation of internal controls to ensure robust governance and compliance. Our tax team offers strategic advice on incentives, flow-through shares, and international structuring. Furthermore, we provide valuation services aligned with NI 43-101 reporting standards, facilitating project financing and capital expenditure planning. Our consulting division is equipped to support mining and metals companies through ERP implementation, strategic planning, innovation, digital transformation, cybersecurity measures, health and safety protocols, and contract compliance. Ultimately, we aim to empower companies to navigate the complexities of the mining sector while driving sustainable growth and operational excellence.

EY found that Capital is the top risk for metals and mining companies in 2025. How does this risk differ between junior and major companies?

Both junior and major companies regard capital as a critical concern but juniors particularly struggle to raise funds, facing obstacles in securing the necessary investment. Although gold prices remain high and attract strong interest, critical minerals face challenging market volatility conditions. These projects would benefit from government support, whether directly or through promotion to international investors.

For major companies, capital allocation involves a delicate balance between asset acquisitions and internal project development. Recent trends suggest a preference for acquisitions. 

How are Québec and Atlantic Canada balancing demands for accelerated extraction with environmental stewardship?

While some view permitting and environmental studies as overly burdensome, the government must balance process efficiency with the needs of local communities. There may be opportunities to streamline administrative processes without compromising environmental standards.

Additionally, the rollback of ESG and DEI policies under the Trump administration has created uncertainty for Canadian companies regarding potential shifts in domestic regulations. Achieving the right balance requires mining companies to integrate productivity and ESG objectives, rather than treating them as separate entities.

How are geopolitical developments shaping the mining industry today?

If we were to conduct our survey again today, I suspect Geopolitics would emerge as our number one risk. Recent global events have driven countries to pursue greater self-sufficiency. Québec has already taken steps in this direction previously, aiming to transform its abundant deposits of critical minerals into a value-added, end-to-end supply chain. This presents Québec with a unique opportunity to establish itself as a leader in critical minerals while diversifying its trading relationships – especially as the US’ reliability as a partner appears to be shifting. 

How does Québec’s hydroelectricity contribute to the sustainability of its mining industry?

Québec’s abundant and cost-effective hydroelectricity is a strategic advantage. As more projects aim to decarbonize their operations, the demand for hydroelectric generation rises. Some Québec companies are set to renegotiate their contracts with Hydro-Québec in the coming years, and unit price increases seem likely. Québec has already had to be selective in its allocation of hydroelectric resources. Nevertheless, there is strong governmental commitment to develop infrastructure and maintain Québec’s global reputation as a leader in sustainable mining.

Cyber and digital risk dropped off EY’s Top 10 list this year. Why do you think that is?

A few years ago, many mining companies faced cyber-attacks, which prompted significant investments in security measures and cyber insurance, ultimately leading to a reduction in this risk. 

A more pressing concern is the digital risk associated with Canada’s mining talent shortage. With a limited skilled worker pool, companies are increasingly investing in automation and remote work technologies to enhance productivity and reduce labor costs. However, recognizing this implication requires a cultural transformation. For instance, operating machinery underground differs significantly from managing digitized, remote-control tasks, requiring distinct skill sets. The sector is gradually adapting to this transition.

How will EY help its clients to adapt to these risks?

Our team regularly analyzes the latest developments and their implications. Simultaneously, we are helping companies make the most of tax incentives and other mechanisms to optimize their capital. We have observed a lot of activity in the M&A and joint venture space, a trend we expect to continue. Most critically, we will support companies in building and executing long-term investment strategies, fostering a more resilient and sustainable mining sector for future generations.