Updated March 2nd, 2024 at 20:11 IST

Canada aims to tackle metal market manipulation and dumping

Dumping, an anti-competitive trade practice, involves exporting products at prices lower than those in the home country.

Reported by: Business Desk
Canada aims to tackle metal market manipulation and dumping | Image:Pexels
Advertisement

Canada's metal market: Canada's Energy and Natural Resources Minister, Jonathan Wilkinson, has expressed concerns about market manipulation and dumping of key metals used in electric vehicle batteries. He stressed the need to explore an alternative pricing model proposed by the US to address these issues.

Wilkinson stated that Canada, along with Australia and the US, seeks to develop its critical mineral supply chain to reduce China's dominance, which controls over 90 per cent of these metals crucial for the energy transition.

Advertisement

The minister highlighted the upcoming Prospectors and Developers Association of Canada (PDAC) conference in Toronto, where the topic will be discussed. He acknowledged the challenges with prices and the importance of addressing market manipulation and dumping practices.

Dumping, an anti-competitive trade practice, involves exporting products at prices lower than those in the home country.

Advertisement

Wilkinson underscored the need for Canada and its allies to find pathways for developing resources outside of Chinese influence.

The PDAC gathering comes amid weaker demand and plummeting prices, with lithium and nickel prices falling by over 70 per cent and 40 per cent, respectively, in the past year. This has led to production cuts and job losses in the mining sector.

Advertisement

In Canada, home to about 40 per cent of the world's listed mining companies, the decline in battery metal prices has affected companies' fundraising capabilities. The government's increased scrutiny of foreign deals and other challenges have also impacted Canada's attractiveness for capital formation.

The move by Ottawa in 2022 to force Chinese companies to divest from Canadian-listed companies citing national security concerns has further dampened inbound deals in the mining sector.

Advertisement

(with Reuters inputs)

Advertisement

Published March 2nd, 2024 at 18:56 IST