Despite gold’s 38% surge in 2024, hitting record highs, mining exploration investment in Canada saw a decline. A B.C. report revealed exploration spending in the province dropped 14% from 2023, with gold-focused investment falling by 24%.
Iain Thompson of EY Canada highlighted factors beyond commodity prices, including projects advancing past exploration and a global downturn in spending. Data from Natural Resources Canada showed mixed impacts across the country, with Saskatchewan and Newfoundland seeing investment growth, while B.C., Yukon, N.W.T., and Nunavut faced declines.
The Yukon, despite rich gold reserves, experienced a 9% drop in exploration spending, attributed to legal uncertainties and the Eagle Gold mine failure. Jonas Smith of the Yukon Chamber of Mines emphasized investor concerns over regulatory unpredictability. Similar concerns were echoed by Karen Costello of the N.W.T. and Nunavut Chamber of Mines, citing policy hurdles in B.C., Yukon, and N.W.T. as deterrents to investment.
Regulatory challenges, including land access restrictions and environmental regulations, have contributed to declining investment. B.C. will introduce new mining regulations on March 26, requiring prospectors to consult with First Nations before staking claims—an initiative opposed by industry groups. Experts warn that without investor-friendly policies, Canada risks losing its competitive edge despite its strong geological potential.
Source: Swifteradio.com
