CP Rail Strike Adversely Affects Canadian Mining Operations

The Mining Association of Canada (MAC) expressed grave concern regarding the significant economic impact that the CP rail strike will have on mining communities and urged the Government of Canada to take immediate action to resolve the labour dispute.

The impact is felt strongly by mining companies dependent on rail to either transport fuel in, or transport products and by-products from operations. "A strike by CP workers will have a serious effect on the industry," said Pierre Gratton, MAC's President and CEO. "The shipment of fuel and other supplies to mine sites will be compromised as is the transport of mineral products."

The CP rail strike will cause a shortfall of essential fuel and supply shipments to mines across Canada. It will also prevent mines from delivering their products to their end-point destinations, thus seriously and adversely affecting their ability to operate at any functional capacity.  In this time of post-recession economic recovery, a threat to the stability of the natural resource sector is a threat to the stability of a stalwart of the Canadian economy.

On behalf of the mining industry in Canada, MAC urges the federal government to resolve the labour disruption so that operations can return to business as normal scenarios as soon as possible.

According to MAC's latest Facts & Figures report, the Canadian mining industry accounts for over 50% of the freight revenues of Canada's rail system yearly. The industry is also a key economic driver for the country having contributed $36 billion to Canada's GDP, employed 308,000 workers, and paid $8.4 billion in taxes and royalties to provincial and federal governments in 2010.

About MAC

The Mining Association of Canada is the national organization for the Canadian mining industry.  Its members account for most of Canada's production of base and precious metals, uranium, diamonds, metallurgical coal, mined oil sands and industrial minerals and are actively engaged in mineral exploration, mining, smelting, refining and semi-fabrication. Please visit www.mining.ca.