Liberal or Conservative, Canada’s mining industry should receive more support over the coming years, though the approach from both parties differs slightly:
Topic | Carney | Poilievre |
|---|---|---|
Focus | Clean energy critical minerals, sustainability | Rapid development of ring of fire and other projects |
Approvals | One project, one review, environmental & indigenous standards | 6-month approvals, less restrictions around approval process |
Infrastructure | $1.5B first & last mile fund | $1B ring of fire road |
While miners that have been stuck in drawn out permitting processes should benefit, our focus in this one is on the companies that will benefit from the downstream impacts of more mining activity.
Who benefits from more mining activity?
While Carney has placed emphasis on sustainability versus Poilievre’s focus on speed, environmental consulting demand should grow regardless, which is Stantec’s (STN) bread and butter.
ATCO’s (ACO-X) structures and logistics segment (>20% of earnings) should benefit from increased mining activity as well, given that the remote nature of the work drives demand for workforce housing and accommodations.
Dexterra (DXT) should benefit similarly, as demand for the services side of workforce accommodations is by far its largest segment and its focus for medium-term growth.
Black Diamond Group (BDI) is the only Canadian pure-play does both, with a roughly equal split between its modular space and workforce solutions segment.
Increased mineral output should benefit the rails as well, who generate over 10% of their freight revenues from the category.
