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‘You can’t get weak in the knees’: Canadian miners continue to expand abroad despite brutal bear market

Despite a horrendous market in commodities, political risks and serious struggles to raise capital, Canadian firms continue to invest vast sums in mineral assets all over the world.

Canadian miners working abroad just aren’t giving up.

Why a global in turmoil is still parking its cash in Canada – lots of cash

Our economy is struggling yet Canada’s government bonds were the very best performers this season among major developed economies. What gives?

Despite a horrendous bear market in commodities, ongoing political risks and serious struggles to boost capital, these firms still invest vast sums of capital in mineral assets around the globe.

Canadian miners spent more than $69 billion on foreign projects in 2014, based on the latest data from Statistics Canada. That’s roughly using the 2013 figures, and it is generally more than these were spending each year throughout the metal price boom last decade. Mining and metal products consistently constitute about 10 % of Canada’s foreign direct investment, according to the Mining Association of Canada (MAC). And along with energy and financial services, it is a sector where Canada is a clear global leader.

“Mining is the area where Canada excels abroad, and that is not likely to change,” said Pierre Gratton, president of the MAC.

Obviously, some of the capital being invested today pertains to projects which were greenlighted years ago, when the outlook for commodities was far better. And the 2015 totals, which are not yet available, will likely show a decline in overall foreign investment as metal prices weakened significantly during the period of the year. Investment should continue to fall in the future so long as prices are low and capital is scarce.

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