Fortune Minerals Ltd T.FT

How chilly relations are playing out for Canada’s miners

[Allman]

... Three key stories have characterized the first half of the year. Firstly, Canadian businesses are seeing the effects of the new investment restrictions the government implemented last year, requiring ministerial approval on Chinese investments in the Canadian mining sector. Alongside these new restrictions on inbound Chinese investment, Canada’s traditional allies have been courting Canada as they look to “friend-shore” their supply chains and diversify away from China. Finally, the underwhelming economic rebound following China’s reopening has reduced the Chinese import of metals writ large. These political and economic trends have changed the investors available to Canadian miners and softened demand in the world’s biggest metal consumption market. ...
The first half of the year also saw an increase in mining engagement from Canada’s strategic allies, decreasing China’s relative importance in Canada’s trading portfolio. G7 governments collaborated to decentre China from critical mineral supply chains, and launch new collaborations between Canada and its strategic allies. While this indicates a positive trend for Canadian miners in key areas, these discussions have not yet transformed into hard financing commitments or mobilization of capital. ...
the Canadian federal government and Volkswagen recently committed to building a $20-billion battery plant in St. Thomas, Ont., with Volkswagen planning to source materials from local Canadian miners, though no formal deals have been announced yet.
The Canadian government is likely hoping that the funding gap resulting from a withdrawal of Chinese capital can meaningfully be filled by allied countries and their firms looking to secure access to critical minerals. ...
In the second half of 2023, Canadian miners should watch for several key landmarks, including significant investments by automakers into Canada’s mining sector, and a rebound in Chinese domestic industry. Moreover, miners should increasingly pay attention to whether escalating Sino-Western spats spiral into new restrictive policies, like the Chinese export mineral controls on critical minerals gallium and germanium that began on Aug 1. 

https://www.northernminer.com/precious-metals/how-chilly-relations-with-china-are-playing-out-for-canadas-miners/1003857515/