An industry that has long been a focal point of the Canadian economy is showing signs of struggle.
Driving the news: Canada is currently home to about half of the world’s mineral exploration and publicly listed mining companies, but over recent years, its influence as a global mining hub has weakened as firms leave the country and de-list from the nation’s stock exchanges.
- According to Bloomberg, three firms have relocated their Canadian headquarters to other countries in nine months, including Lithium Argentina and Solaris Resources.
- Meanwhile, the world’s share of mining companies listed on the Toronto Stock Exchange or TSX Venture Exchange has fallen from 56% in 2010 to 40% today.
Why it’s happening: A federal crackdown on foreign state ownership in the sector has left companies struggling with funding. In 2022, Canada started blocking investments into the sector after facing criticism for allowing too much, particularly from Beijing-linked firms.
- A 2023 Bloomberg analysis found that Chinese companies had acquired stakes in more than two dozen Canadian miners.
Why it matters: Declining confidence in the industry could further reduce investment in the country and hurt Canada's ability to attract and retain resource projects. Last year, Natural Resources Canada projected that investments into mining industry assets would fall.—LA