Manitoba 2nd-last in dollars devoted to mining, energy & forestry projects, federal inventory says

Manitoba ranks second-last among Canada's provinces when it comes to dollars devoted to major mining, energy and forestry projects, according to the latest federal list of natural resources projects under construction or planned for the next 10 years.

In a September 2024 inventory of major projects, Natural Resources Canada states Manitoba has $1.7 billion of mining, energy and forestry projects in the works.

Only tiny Prince Edward Island has fewer dollars — $200 million — devoted to major mining, energy and forestry projects, while Saskatchewan, which most resembles Manitoba in terms of population and geography, has $26.7 billion devoted to projects in these sectors.

The 2024 inventory, published on Jan. 15, found the value of major projects on the go in Manitoba dropped by $400 million from 2023.

This is partly because two energy projects were completed but 14 others were cancelled, suspended or placed on hold, according to the inventory.

The largest projects on the 2024 inventory are Manitoba Hydro's Pointe du Bois station generating upgrade and Alamos Gold's Lynn Lake open-pit mining project.

Robert Parsons, an instructor in sustainability economics at the University of Manitoba's Asper School of Business, questioned the methodology of the annual inventory by Natural Resources Canada even as he stated the report is otherwise useful.

Parsons said the inventory does not include some Manitoba projects that are close to proceeding but does suggest this province could be doing more, especially in terms of developing renewable energy and mining critical minerals.

"We're being dissed, a little bit," Parsons said Wednesday in an interview. "It is not a damnation-type report for us, but it is cautionary."

On the energy side, Parsons said this province is slow to build large-scale biofuels plants to stem the growth of diesel-fuel consumption by the transportation industry.

He also said Manitoba ought to consider commissioning new generating stations fuelled by natural gas in order to meet the rising consumer and industrial demand for electricity.

While Premier Wab Kinew has effectively promised to decommission Manitoba Hydro's lone gas-fuelled generating station at Brandon, Parsons said the Crown corporation generates enough clean energy to make it palatable to develop new gas plants, which are relatively inexpensive to build.

"Without affordable options, wishful thinking on decarbonization risks unimaginable economic misery," he said, paraphrasing his colleague, the renowned U of M environmental-scientist Vaclav Smil.

"We've had the lowest emissions in all of North America for a long time," said Parsons, referring specifically to Manitoba Hydro. "And do we get any credit for it? No, the federal government gives us no credit for that."

On the mining side, Parsons said Manitoba must not simply promote a commitment to mining critical minerals, but focus on specific commodities, such as nickel and copper.

John Morris, a co-director for the Mining Association of Manitoba, said the Natural Resources Canada inventory is "just a snapshot" of projects in the works in Manitoba and undervalues or overlooks some projects.

For example, the inventory understates the value of a pair of open-pit gold mines Toronto-based Alamos Gold plans to build northeast of Lynn Lake in northern Manitoba, Morris said.

The project is expected to cost more than $1 billion to build over the next three years, he said.

"When this project does come online, it will have 600 people working to build it and 450 operating it afterwards. So that'll definitely have a big impact here in Manitoba," Morris said Wednesday in an interview.

Morris said Manitoba has improved the way it approves and regulates the mining industry.

"What we could do better is promoting Manitoba as a destination for that capital investment for these major projects because we do need the capital to build these projects," he said.

Jamie Moses, Manitoba's natural resources minister, declined to directly address the value assigned to major resource-sector projects in the federal inventory.

"I am just happy that I have the opportunity to continue to talk about the great things that we're doing in the mining space and how our province is investment-ready for mining," Moses said Wednesday in an interview, blaming the previous PC government for failing to take the mining industry seriously.

PC interim leader Wayne Ewasko challenged that assertion by drawing attention to 14 projects removed from the 2024 inventory.

"Manitoba has no plan to move forward on on any type of economic development when we specifically talk about our natural resources," he said.