OTTAWA, ON, Aug. 22, 2024 – The Mining Association of Canada (MAC) has expressed significant concern regarding the negative effects of the unprecedented simultaneous interruption in service from Canada’s two Class 1 Railways. This disruption has far-reaching implications beyond just hindering the transportation of mining products to and from both domestic and international markets. It also impacts Canada’s efforts to supply minerals and metals globally, especially in the increasingly competitive critical minerals market.
As the mining sector is the largest industrial customer of Canada’s railways, unforeseen work stoppages severely affect Canada’s reputation as a reliable trading partner. Pierre Gratton, MAC’s President and CEO, emphasized the urgency of meeting global demand for Canadian minerals in a timely manner amidst increasing competition. The simultaneous halt in rail service from Canadian Pacific Kansas City Railway Company (CPKC) and Canadian National Railway Company (CN) comes at a critical juncture when Canadian strength in mining relies heavily on competitive mineral production, processing, and efficient transportation to international markets.
For over a decade, minerals have represented a significant portion of the total freight volume transported by rail in Canada, with over 50% attributed to crude and processed mineral products. The mining industry, which ships a majority of its products to international customers, faces immense operational costs during work stoppages. This disrupts supply chains and decreases investor confidence in Canada as a reliable trade partner.
The industry has experienced various disruptions in recent years, from labor disputes to global events like the pandemic, affecting Canada’s supply chain reliability. MAC continues to emphasize the importance of a stable and predictable logistics supply chain to restore confidence in Canada’s reliability as a global trading partner.
For further information regarding the mining sector, transportation, trade, and associated policy recommendations, please visit: [link to report]
The mining industry plays a significant role in Canada’s economy, contributing $161 billion to the national GDP and accounting for 21% of total domestic exports. It employs 694,000 individuals directly and indirectly, with a focus on supporting Indigenous communities and businesses.
About MAC:
The Mining Association of Canada represents the Canadian mining industry and its members are key players in the production of base and precious metals, uranium, diamonds, coal, and oil sands. Engaged in various mining activities, MAC aims to promote responsible and sustainable mining practices in Canada. Visit www.mining.ca for more information.
SOURCE: The Mining Association of Canada
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Geoff Smith
Vice President, Government Relations
Phone: 613.294.3173
Email: [email protected]
