OPINION: Canadian pension funds must invest more in the domestic resource sector – by Frank Guistra and Pierre Lassonde (Globe and Mail – February 6, 2024)


Frank Giustra is chief executive officer of Fiore Group. Pierre Lassonde is chair emeritus of Franco Nevada Corp.

The global race to secure critical minerals for our green future is on, and sadly, Canada is very much at risk of losing the plot.

In the past 20 years Canada has lost almost all of its mining giants, including Inco, Alcan, Falconbridge and Noranda, to multinationals – and along with them the head office and research and development talent pool. Inco, for example, was at one point the top battery technology expert in the world.

The solution lies in our Canadian pension funds – dubbed the Maple 8 – representing 35 per cent of all Canadian savings. Canadian investments do not just affect pension portfolios. They also have a considerable impact on Canada’s economy, generating jobs, improving incomes, and increasing contributions to retirement plans. Given their long-term approach to investments, Canadian pension funds should look more deeply into Canada’s resource sector.

It is vitally important to bolster Canada’s resource sector. The International Energy Agency estimates that global investment in critical mineral mining will need to reach between US$360-billion and US$450-billion over the next decade in order to enable a net-zero energy transition by 2050. At this point the world is nowhere near those numbers.

For the rest of this column: https://www.theglobeandmail.com/business/commentary/article-canadian-pension-funds-must-invest-more-in-the-domestic-resource/