Located in the tier one mining jurisdiction of Quebec, Troilus holds a large land position of 435 km2 within the Frôtet-Evans Greenstone Belt and looks to ramp up production of the project when permits come in.SUPPLIED
Global copper demand is at a record high – while market volatility has intensified the focus on gold as a reliable hedge. At the same time, Canada’s attention is on bolstering resource sovereignty as well as strengthening trade relationships beyond the previously dominant north-south axis.
The confluence of these forces catalyzes significant momentum for Troilus Mining Corporation, says Troilus CEO and director Justin Reid. “We have a unique value proposition for Canada and the world, and things are very well aligned for what we’re able to deliver.”
Troilus – a Canadian mining company dedicated to advancing the former Troilus gold and copper mine towards a mine-restart – benefits from a “commodity environment where prices have appreciated substantially in a short period of time,” says Mr. Reid. “Our asset has attracted significant investment because of potential returns. We’re going to produce 75,000 tonnes of copper concentrate per year, which makes us Canada’s largest copper producer in the permitting stage.”
With a projected 50,000-tonnes-per-day open-pit mining operation, Troilus is among Canada’s largest undeveloped gold-copper assets. And since gold is considered a safe-haven investment during economic and political volatility, “the timing for both commodities could not be better,” he adds.
Strong copper demand a competitive advantage
At the same time as copper demand is going up – due, in part, to electrification and the need to replace existing power grid infrastructure – a structural lack of investment into copper mining over the past two decades has led to a significant supply shortage.
To date, a small number of deposits provide the majority of the world’s copper. “Due to under-investment, these assets are getting older, deeper and more expensive to produce,” says Mr. Reid. “And there haven’t been a lot of new discoveries. We’ve also seen major supply disruptions due to social unrest.”
As trade partners, including the European Union, look for alternative sources of copper concentrate, Troilus, with its clearly defined path to production, is an obvious choice, he proposes. “We’re next, especially for European smelters. We can put our concentrate on the St. Lawrence and ship it across the Atlantic.”
Justin Reid“Our asset has attracted significant investment because of potential returns. We’re going to produce 75,000 tonnes of copper concentrate per year, which makes us Canada’s largest copper producer in the permitting stage.
CEO and Director, Troilus Mining Corporation
Strengthening east-west trade relationships
Volatility due to recent geopolitical changes served to illustrate “that Canada has been overly reliant on north-south trade connections,” says Mr. Reid. “There have been lots of opportunities Canada hasn’t fully taken advantage of due to project delays and lack of global investments, for example.”
Canada’s current government aspires to address this inertia with “a number of initiatives and frameworks aimed to drive programs forward – including in mining and infrastructure – as a way to generate jobs, investment and growth for Canada in an expedited way,” he notes.
The federal government also works to expand trade, with a focus on east-west connections, including with the European Union, as well as on attracting global investments. “We beat them to the punch,” says Mr. Reid. “We just completed a $172-million substantial equity offering by institutional shareholders, the second-largest equity offering by any TSX-listed company in the last 10 years.”
Troilus has increased its debt from US$700-million to US$1-billion, with “incredibly flexible and well-priced backing from export credit agencies of European Union partners, including Germany, Finland and Sweden, and the Canadian government through Export Development Canada,” he says. “Troilus will deliver two-thirds of its copper concentrate into the European Union and keep one-third domestically.”
Path to production
Located in the tier one mining jurisdiction of Quebec, Troilus holds a large land position of 435 km² within the Frôtet-Evans Greenstone Belt.
Engagement with all levels of government has benefited from alignment of priorities – between federal, provincial and municipal authorities – in recognition of Troilus’s role in helping meet Canada’s critical minerals objectives as well as create employment, says Mr. Reid. “Once we’re ramping up construction, ideally at the end of 2026, we’ll have 1,000 jobs for constructing the mine. When we move into full production, we’ll employ nearly 700 people, which will make us the largest employer in the James Bay area.”
Along the trajectory “from exploration through feasibility work and engineering to pre-development and permitting,” Troilus has submitted its environmental and social impact assessment, which is currently under review, he says. “We’re putting an execution plan in place that will be ready for when permits come into our hands.”
Community impact of generational scope
Consultations with community stakeholders have been ongoing for several years, building on Troilus’s track record of “not only operating profitably from 1996 to 2010 but also being a great steward of the land for all stakeholders,” says Mr. Reid, who sees labour force development with local communities as a priority.
“Quite often, these mines are fly-in/fly-out operations. We’re taking a different approach: we hope to have a large workforce able to work about an hour and a half from where they live,” he explains. “We have the opportunity to be innovative – and help people develop a great work-life balance, which can be difficult in mining.”
Troilus is focused on building its operations around established communities, particularly in Chibougamau where the company intends to build a full administrative complex in order to create a more attractive employment model and stronger foundation for long-term regional employment. Another outreach focus is on raising awareness about career opportunities, especially in the Cree community of Mistissini. “Mining isn’t just about driving a truck or working in a mill,” says Mr. Reid. “It requires the same range of professions that are required to support any community.”
With a projected 22-year mine life, Troilus is expected to deliver lasting socio-economic benefits for the region. “The impact is going to be generational,” he adds.
Advertising feature produced by Randall Anthony Communications with the Prospectors & Developers Association of Canada. The Globe’s editorial department was not involved.