OPINION: Global mining companies searching for ESG-friendly commodities look at mid-tier Canadian producers as acquisition targets – by Andrew Willis (Globe and Mail – September 12, 2022)


A handful of Canadian mid-tier miners spent the past few decades bringing major copper and nickel projects into production. They aren’t getting long to enjoy the fruits of their labours.

Merger and acquisition activity is picking up in mining, as cash-rich global companies snap up smaller producers of metals that are essential to an electrified economy. Analysts predict targets in the next round of acquisitions will include domestic companies that have producing mines around the world, including Champion Iron Ltd., Copper Mountain Mining Corp., First Quantum Minerals Ltd., Hudbay Minerals Inc. and Ivanhoe Mines Ltd.

Judging by the latest round of deal-making, the tone of the takeovers is likely to be hostile.

Mining companies have two paths to growth: they can either develop their own properties or buy someone else’s. In an industry study this month, a team of four analysts at Scotiabank concluded major international miners own very few quality development projects.

For the rest of this article: https://www.theglobeandmail.com/business/commentary/article-mining-mergers-acquisitions-esg/