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Simon Doyle covers lobbying and the intersection of business and politics in Ottawa. He writes for Politics Insider, which is available only to subscribers of Globe Unlimited.
The mining industry is lobbying for government help for junior mining companies and northern infrastructure as more juniors have delisted from the TSX and the commodities rout has deepened.
Minerals continued to fall early last week before a tumultuous few days on the markets. Fears about China’s economy and its metals consumption have refreshed arguments among members of Canada’s mining-industry associations for government measures to support the sector.
“The government appreciates the circumstances,” said Rod Thomas, head of mineral exploration industry group the Prospectors and Developers Association of Canada, whose group has been calling for an expanded junior mining tax credit, investment in northern infrastructure and relaxed rules for raising capital.
“Right across the board, we’ve seen a withering, if you will, of commodity prices. A lot of that is due to slower growth in China.
“You have to separate a lot of the near-term noise from the long-term potential,” Mr. Thomas said.
What’s the issue?
Junior mining companies have felt the combination of a commodities slump and the challenge of raising money on capital markets.
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