Wildfires Interrupt Mining Operations in Quebec

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:

• Iron Ore Company of Canada, which is largely owned by Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO)
• Hecla Mining (NYSE:HL)
• Osisko Mining (TSX:OSK,OTC Pink:OBNNF)
• Wallbridge Mining (TSX:WM,OTCQX:WLBMF)
• Québec Nickel (CSE:QNI,OTCQB:QNICF)
• Troilus Gold (TSX:TLG,OTCQX:CHXMF)
• Q2 Metals (TSXV:QTWO,OTCQX:QUEXF)
• Patriot Battery Metals (TSXV:PMET,OTCQX:PMETF)
• Brunswick Exploration (TSXV:BRW,OTCQB:BRWXF)
• Champion Electric Metals (CSE:LTHM,OTCQB:GLDRF)
• Bonterra Resources (TSXV:BTR,OTCQX:BONXF)
• Archer Exploration (CSE:RCHR)
• Cosmos Exploration (ASX:C1X)
• Agnico Eagle Mines (TSX:AEM,NYSE:AEM)

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.