Two major mining companies are rerouting shipments and increasing truck use in response to a Canadian railway stoppage that threatens to disrupt industry operations.
Rio Tinto Group announced it will rely on trucking and enhance its use of its own railway between Quebec and Newfoundland and Labrador to transport raw materials.
The company, which produces aluminum, iron ore, diamonds, and titanium in Canada, made the announcement via email on Thursday.
Teck Resources, which operates a copper mine and refinery in British Columbia, is also using alternative transportation methods, according to spokesperson Maclean Kay.
Canada’s mining sector heavily relies on the country’s two dominant railways—Canadian National Railway Co. and Canadian Pacific Kansas City—for transporting heavy materials such as copper, aluminum, iron ore, and coal.
Mining is a vital part of Canada’s resource-driven economy, and the products it generates are crucial for various industries and the global shift towards cleaner energy sources.
The two main rail companies halted operations early Thursday after unsuccessful negotiations with union leaders, disrupting major North American supply chains that handle approximately $740 million in trade daily.
“The mining industry is the Canadian rail system’s most significant customer, and the majority of our products are shipped to international markets,” said the Mining Association of Canada in a statement. The association described the stoppage as “catastrophic” for Canada.
“Work stoppages impose significant additional operational costs on businesses and diminish confidence in Canada as an investment destination for supply-chain-dependent industries like mining,” said Pierre Gratton, head of the Mining Association of Canada.
