Ontario's mining sector caught up in tariff uncertainty

Ontario's mining manufacture relation says it's unclear whether the latest 30-day reprieve connected U.S. tariffs connected Canadian goods volition use to the province's minerals.

U.S. President Donald Trump said connected Thursday that Canadian and Mexican goods that are "compliant" with the Canada-U.S.-Mexico Agreement (CUSMA) would not look 25 per cent tariffs successful his state until April 2.

Priya Tandon, the president of the Ontario Mining Association (OMA), said the province's mineral commercialized with the U.S. falls nether a antithetic agreement, which makes the concern much uncertain.

"We're inactive trying to find retired much details," she told CBC News connected Friday.

"And regardless, fixed that things are changing by the hour… it's conscionable important that we proceed to propulsion to fortify astatine location first."

The OMA  says that successful 2023 Ontario's mineral exports were valued astatine $64 billion. Fifty-seven per cent of those exports went to the United States, astatine a worth of $42 billion.

But that makes the mining manufacture little reliant connected the U.S. than immoderate different sectors. More than 90 per cent of Canada's alloy exports, for example, spell southbound of the border.

A caller study from the Canadian Chamber of Commerce listed Sudbury arsenic Canada's astir resilient bigger metropolis successful the look of U.S. tariffs, due to the fact that its mineral exports are destined to a wide fig of countries.

"I deliberation it's a reflection of conscionable however divers the assemblage is with a divers scope of resources, whether it's golden oregon basal metals, iron, platinum, radical metals," Tandon said.

Critical minerals bargaining chip

In an interrogation with CBC's Front Burner, Jonathan Wilkinson, Canada's Minister of Energy and Natural Resources, said captious minerals are the country's astir important bargaining spot successful the look of U.S. tariffs.

"While energy, potentially, is simply a card, I really deliberation the adjacent much dramatically utile paper is captious minerals," Wilkinson said.

"The Americans request a full scope of those from us."

Tandon said, for example, that the U.S. lone has 1 nickel mine, located successful Michigan.

"In 2022 ... the US imported 130,000 tonnes of nickel, 70 per cent of which was refined successful Sudbury astatine Vale operations," she said.

Nickel is simply a captious mineral and is an important constituent successful the accumulation of stainless alloy and electrical conveyance batteries.

Without proviso from Canada, the U.S. would request to trust much connected countries similar China and Russia for definite captious minerals.

Tandon said the OMA is asking the national authorities to state the mining assemblage a strategical priority.

"That volition assistance america physique much mines and streamline permitting and supply much clarity connected consultation and hopefully supply a batch much concern successful the upstream mining and processing broadside of the proviso chain, which is thing that we request to proceed to see," she said.

Gold little impacted by tariffs

Some minerals are besides much shielded than others successful the look of U.S. tariffs.

Bryan Wilson is the vice-president and wide manager of the Côté Gold Mine, located adjacent Gogama, successful betwixt Sudbury and Timmins.

"We really merchantability to a 3rd enactment successful Canada. So we don't really export ourselves," helium said.

Wilson said the commercialized warfare betwixt Canada and the U.S. volition impact the mine's operating costs, however, since they acquisition immoderate instrumentality and chemicals from American suppliers.

The mine's fleet of autonomous trucks to haul ore, for example, is made by Caterpillar, an American dense instrumentality manufacturer.

Wilson said the excavation is looking to enactment with much Canadian suppliers successful the look of tariffs.

He added that existent golden prices, astatine astir $4,172 per ounce, provide immoderate alleviation from rising operational costs.

"You don't privation to fto those costs get retired of power either," helium said. "But yeah, the terms of golden is surely helping america close now."