Justin Trudeau has decided to destruct the Mining sector of Canada. The city of Toronto is a major hub for the mining industry, with almost half of the world‘s mining companies listed there.
The city has been a top destination for junior mining companies, particularly for raising funds.
Despite this, the government‘s recent crackdown on the industry could have damaging effects. This could significantly hurt the economy of Canada, as the mining industry is a major part of the country’s economy.
Junior mining firms that aim to produce lithium, nickel, and other metals for green energy are concerned that crackdown of Canada on some foreign investors may make it more difficult for them to secure money for mines and related equipment.
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“The ICA review process could be lengthy and unpredictable, leading to uncertainty for potential investors and may make it more difficult for junior miners to attract investments,” said Stephen Payne, who runs the energy and natural resources team at consultancy BDO Advisory.
According to S&P Market Intelligence, China has invested $7 billion in Canada’s base metals sector over the previous 20 years. The adjustments are commonly regarded as a defensive step against China. This October, Canadian authorities forced Chinese firms to sell their shares in three lithium businesses listed on the Toronto Stock Exchange, two of which are constructing mines outside of Canada.
Canada’s Industry Ministry, which is spearheading the rules change, called critical minerals “key to the future prosperity of our country.”
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“We are determined to work with Canadian businesses to attract foreign direct investments from partners that share our interests and values,” said a spokesperson for Industry Minister Francois Philippe Champagne.
So, it looks clear that the Canadian prime minister has planned a destruction of the Canadian mineral sector.
