A wildfire crisis in Quebec has halted the operations of some mining corporations in the eastern province.
Nearly 15 mining companies have stopped all operations in the province due to over 150 forest fires engulfing several areas of Quebec, a nearly C$4 billion mining investment space in Canada.
‘We’re following all of this from hour to hour, obviously,’ Premier Francois Legault told the media on Tuesday (June 6). ‘If we look at the situation in Quebec as a whole, there are several places where it is still worrying.’
Per a Reuters factbox, 14 companies have all stopped their day-to-day mining operations, dealing a heavy blow to Canada’s vast mining space.
Mining firms shut down operations in Quebec
Per a Reuters article, 14 companies have all stopped their day-to-day mining operations, dealing a heavy blow to Canada’s vast mining space. The companies, as of this writing, are as follows:
Companies respond to natural disaster
Killian Charles, president and CEO of Brunswick Exploration, said in a statement that the firm supports the province’s efforts and looks forward to a rapid return to operations once it is safe to do so.
“Resources will be redeployed towards projects which are currently safe to access or where the risk of fire is low,” Charles said.
Forest fires were expected this year, but the crisis has become larger than previously thought, one mining executive told the outlet Commodity Insights.
‘We see forest fires every summer, but not as extensive as this,’ John Burzynski, executive chairman and CEO of Osisko Mining, said. ‘This is unusually early for fire season. It’s been very dry.’
Climate change is a concern that’s top of mind for the mining industry, according to a report issued by a business advisory firm last year.
In a report on the top business risks and opportunities for mining and metals, Ernst & Young highlights growing concerns about the impact of climate change.
“For example, not enough miners are taking action to minimize the physical risks of climate change, such as wildfires and flooding, which may threaten operations,” the firm states.
Investor takeaway
Natural disasters are a common occurrence today, and their impact on the mining industry is clear. As Quebec faces down wildfires, the sector will have to pause and wait out the chaos.
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.