Can you highlight any notable developments at EY Canada since we last spoke?

One significant achievement is the ongoing success of our Americas Centre of Excellence. Established four years ago, this initiative has proven instrumental in assisting clients with navigating the energy transition and other imperatives in the metals and mining sector. Comprising technical and operations experts, innovators, and EY professionals, the Centre has become a distinctive offering, setting us apart from our competitors. 

Another noteworthy update revolves around our 2024 ‘Top 10 business risks and opportunities for mining and metals’ report, which highlights the evolving business ecosystem for metals and mining companies. While ESG and License to Operate remain paramount, issues such as biodiversity in mine closure have gained prominence, signaling a shift in industry priorities. Additionally, the report sheds light on the changing role of capital in the mining sector. Sovereign and retirement funds are now playing a more significant role in financing mining projects, with a strong emphasis on tying capital availability to a company's ESG performance. 

On the operational front, challenges persist with rising costs and inflation impacting the industry. Talent acquisition also remains a critical aspect, with geographical variations in the availability of skilled workers and professionals. 

In summary, our recent updates reflect a dynamic industry landscape, where a focus on sustainability, capital alignment, cost management, and talent acquisition are central to navigating the evolving challenges in the mining sector.

How are the new tax disclosure regulations driving demand for EY’s services?

Indeed, the anticipation around regulations like the S1 and S2 from the International Sustainability Standards Board (ISSB) is shaping a landscape where global adoption seems imminent, urging companies to prepare themselves proactively. While the regulations are not mandatory yet, the expectation of Canada signing sooner than later is a key driver. Clients are not only seeking guidance on compliance but also exploring avenues to access energy transition funding. Simultaneously, there is a palpable shift in focus toward disclosure requirements related to climate change impact and sustainability financing, particularly in S1 and S2. 

Beyond tax considerations, several other factors contribute to the buoyancy of our mining and metals business. The audit sector is experiencing significant growth, driven by our Center of Excellence, which has created a pool of technical experts supporting audits. The establishment of a mining academy to train audit teams specifically for the industry has been pivotal. 

How significant is the issue of cybersecurity in the mining industry, considering recent attacks?

More mining companies are reporting cyber attacks. With the increasing use of operational technology (OT) and cloud-driven mineral processing, the sector needs to be more aware of, and ready to tackle cyber threats. Our industry group actively addresses these concerns through international collaboration and tabletop exercises, recognizing the urgency of safeguarding against cyber threats in mining, given the potential impact on operations and safety.

Do you have advice for owners of small mining companies, given the current financial climate?

In the mining sector, success hinges on teamwork. Building the best team is critical, whether it is having top-notch bankers, operators, or ESG specialists. Mining is international by nature and as a result, diversity should play a key and uniting role. Embrace diversity to assemble the best talent. The future of mining lies in forming diverse, high-performing teams. It is also essential to upgrade practices in line with modern standards, ensuring operations prioritize technology, health, and safety. Regardless of location, mining companies should strive to be symbols of performance and global citizenship. Diversity in our sector is not just gender; it should include race, professional background, and creativity.

What are your plans for growing the mining and metals business in 2024?

Our approach is centered on drawing on our vast pool of talents to support clients in their chosen pathways while anticipating and dealing with the winds of change. We prioritize helping clients achieve their ambitions, measuring success by their satisfaction. Collaborating with our Centre of Excellence and our ecosystem alliances, we aim to stay ahead of industry trends, presenting clients with innovative solutions. The ongoing expansion of our Centre of Excellence with top global talent is key to our commitment to clients.