https://www.theglobeandmail.com/
Loui Anastasopoulos is chief executive of the Toronto Stock Exchange and global head of capital formation of TMX Group.
It’s an unfortunate truth: Canada is facing economic challenges, including weak growth and productivity, stemming from declining investment in our key industries. The investment shortfall is particularly acute in the mining sector, where Canada’s proud and prominent legacy of global leadership is under serious threat.
In addition to stifling macroeconomic factors and high interest rates, sudden shifts in government policy have created uncertainty around capital raising for mining companies. And the most recent federal policy directive on foreign investment into Canada’s critical mineral companies has the potential to be the most harmful yet.
Over the past few years, the government has, under the Investment Canada Act (ICA), placed increasingly stringent restrictions on investment from foreign state-owned entities into Canadian critical minerals companies. While the purpose of these restrictions is to protect Canada’s national security interests – an important consideration and not one we are debating – the fact is they have created serious financing challenges for mining companies by limiting access to large sources of global capital.
For the rest of this column: https://www.theglobeandmail.com/business/commentary/article-new-restrictions-on-foreign-investment-put-canadas-mining-sector-at/