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Welcome to Economic Insights, a twice-weekly newsletter focusing on major projects and the Canadian economy at large.
Stories we are following:
- ELDORADO GOLD plans to buy FORAN MINING‘s McILVENNA BAY mine, one of the first projects to be referred to the MAJOR PROJECTS OFFICE.
- Alberta Premier DANIELLE SMITH has officially crossed one B.C. port off her list for a new bitumen pipeline, citing navigation “complexity” as she hunts for a deep-water winner.
- Northwest Territories Premier R.J. SIMPSON says the $1-billion Arctic Infrastructure Fund should go to the territories only, excluding Arctic provinces like MANITOBA who hope it could be used to fund projects like the PORT OF CHURCHILL PLUS.
ELDORADO GOLD announced Monday it is acquiring FORAN MINING and its McILVENNA BAY project in a $3.8-billion deal. The project was among the first Prime Minister MARK CARNEY referred to the MAJOR PROJECTS OFFICE.
No part of it: FORAN MINING tells us the special government agency was not involved in the deal, but that their support was “invaluable” in raising the project’s profile. We reported last fall that FORAN MINING was using its federal endorsement to drum up investor confidence.
The Buyer: Vancouver-based ELDORADO GOLD is looking to diversify its gold-heavy portfolio in Greece and Turkey. By adding the Saskatchewan copper-zinc project, ELDORADO GOLD expects copper to account for 15 per cent of its revenue by 2027.
The Status: Construction at McIlvenna Bay is nearly complete, with production slated for this summer. As part of the deal, FORAN MINING‘s DAN MYERSON will join ELDORADO GOLD’s board.
“Over the past five years, our focus was to permit, finance and build the mine,” said MYERSON. “Now that we did that, we have to look at the next step for growth, and that’s how the match and marriage happened.”
Unhappy market: Investors reacted rather coldly to the news. ELDORADO GOLD’s shares fell 8.5 per cent on the TORONTO STOCK EXCHANGE, while FORAN MINING’s shares fell 5 per cent.
SMITH has confirmed KITIMAT is not under consideration as a possible exit point for ALBERTA‘s proposed northwest pipeline.Bad spot: She cited the “complexity” of the channel navigation as the primary reason, while saying the province has learned from the defunct NORTHERN GATEWAY project.
Remaining contenders: While PRINCE RUPERT is the industry favorite, VANCOUVER technically remains on the table as a deep-water option with fewer navigational “channels” than the Kitimat route, despite SMITH‘s concerns about capacity.‘
It’s their baby’: Premier DAVID EBY isn’t engaging in negotiations about what PRINCE RUPERT could mean for the oil tanker ban. “We’ll see what proposals they come up with,” he tells iPolitics.
The deadline: SMITH expects to have a route and a project proponent by June.
BY THE NUMBERS
$343-billion: The value of Canada’s largest infrastructure projects, according to ReNew Canada, who also notes a record $43-million increase in spending in 2026 driven by the nuclear sector.
11: The number of projects referred to the MAJOR PROJECTS OFFICE so far, and the number of people that sit on its Indigenous advisory council.
2030: The revised target year for the Iqaluit hydro plant to become fully operational. Previous timelines included a 2033 target.
MAJOR PROJECTS WATCH
— Appointment scrutiny: A CBC analysis looks at appointments, like that of DAWN FARRELL at the helm of the MAJOR PROJECTS OFFICE, to assess whether CARNEY‘s government is departing from JUSTIN TRUDEAU‘s 2016 reform of governor-in-council and Senate appointments.
— Hydro hurdles: Over the past week, NUNAVUT‘s NUKKIKSAUTIIT corp. conducted consultations in Iqaluit and Pangnirtung for the hydro power project recently referred to the MAJOR PROJECTS OFFICE. Pangnirtung MLA JOHNNY MIKE is concerned the proposed site on the Kuugaaluk River could devastate local char fisheries, still according to CBC.
— AI power: AI Minister EVAN SOLOMAN told a house committee Monday that the MAJOR PROJECTS OFFICE and natural resources minister TIM HODGSON are involved in finding energy to power potential future Canadian AI data centres. HODGSON told iPolitics last week he didn’t have specifics to share on that file.
HEADLINES
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