The landmark Big Nickel in Sudbury, Ontario, symbolizes the province's significant role in the global mining industry. However, recent developments in U.S. trade policy are threatening this sector. The United States, which operates a single nickel mine in Michigan producing 8,000 tons of nickel concentrate last year, has imposed tariffs on Canadian goods. This move risks disrupting the trade relationship between the two nations, particularly as the U.S. heavily relies on Canada for its nickel imports, with 46% of its 100,000 tons coming from Canadian sources.
Ontario's mining sector plays a crucial role in the province's economy. In 2023, the sector exported $42 billion in minerals to the U.S., contributing almost $24 billion to Ontario's GDP. This made up a significant portion of the $64 billion in global mineral exports from Ontario, with Ontario's mining exports accounting for a quarter of all goods exported from the province.
The imposition of tariffs is expected to create cost pressures for Ontario's mining industry and may hinder its ability to compete for investment. Ontario Premier Doug Ford has even threatened to cut off nickel exports to the U.S. as a retaliatory measure. The U.S.'s dependence on Canadian mineral imports, particularly critical minerals, underscores the potential impact of these tariffs.
"The U.S. depends so highly on Ontario in particular when it comes to nickel and copper, so there’s much that can be done there with the U.S. to strengthen us at home." – Priya Tandon
Despite these challenges, there is hope for growth within Ontario's mining sector. Priya Tandon, President of the Ontario Mining Association, emphasized the need for focused efforts to bolster the industry. She highlighted that while the sector is deeply integrated with the U.S., tariff-induced cost increases will affect essential inputs like tools and technologies.
"Because the sector is so deeply integrated with the U.S., that means input costs are going to go up. That means, you know, tools, equipment, things like ventilation on demand, specific technologies, the cost of all the material inputs into that, are going to go up." – Priya Tandon
In light of global competition for investment, Tandon stressed the importance of strengthening Ontario's industry.
"It’s definitely going to be tough, especially because many of our companies are competing for investment globally. They’re global companies, they have projects all around the world, and internally they compete for that global investment.” – Priya Tandon
"So there’s many aspects I think we need to do in Ontario to strengthen the sector." – Ian Bickis
