Agnico-Eagle may fly Mexican bullion to Canada to skirt Trump tariffs – by Danielle Bochove (Bloomberg/Financial Post – June 6, 2019)

https://business.financialpost.com/

The opportunities in Canada’s North are enormous, but the
country’s leaders need to have a conversation about how
committed they are to fund projects. … As global warming
makes the region more accessible, Canada would do well to
secure its sovereignty claims through its natural resources,
he said. “If we want to have a say on how the North develops,
and how the North is used and utilized, we’d better have a
presence there,” Boyd said. “And the best presence would be businesses.”

If push comes to shove, one of the world’s largest gold miners is prepared to do an end run around the U.S. should President Donald Trump’s threatened tariffs on Mexican goods bite.

Agnico Eagle Mines Ltd. currently produces about 300,000 ounces of gold in Mexico that it refines in the U.S., all of which would likely be subject to the proposed tariffs, Chief Executive Officer Sean Boyd said Wednesday. But he already knows how he’d respond to potential levies.

“It’s not expensive to fly a bar of gold,” Boyd said in an interview at Bloomberg’s Toronto bureau. “We would just refine it somewhere else. We could easily bring it to Canada.”

Meanwhile, the Toronto-based company, Canada’s second-largest gold miner, is reaping some benefits from U.S. isolationism. Global trade jitters have strengthened the U.S. dollar at the expense of the Mexican and Canadian currencies, significantly reducing Agnico’s costs, he said.

In the hour-long interview, Boyd discussed a wide range of issues, from consolidation in the gold industry to the succession plan for a company he has helmed for more than 20 years.

For the rest of this article: https://business.financialpost.com/commodities/mining/gold-miner-may-fly-mexican-bullion-to-canada-to-skirt-trump-tariffs

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