Canadian Rail Labor Dispute Threatens Mining Operations

Rio Tinto and Teck Resources warned that a labor dispute between Canada's major railway companies and their workers could disrupt mining operations. Both companies are implementing contingency plans to mitigate damage, including alternative transportation methods. The dispute affects Canadian National Railway and Canadian Pacific Kansas City, impacting critical mineral supply chains.

Rio Tinto and Teck Resources have expressed concerns over the labor dispute between Canada's two leading railway companies and their employees, warning that the conflict will likely disrupt their operations. To manage the impact, Rio Tinto is planning to use trucking and its own rail network, while Teck is exploring other transportation alternatives.

A spokesperson for Teck emphasized that the interruption could negatively affect partners and customers involved in the critical minerals supply chain. The rail stoppage, resulting from more than 9,000 unionized workers being locked out by Canadian National Railway and Canadian Pacific Kansas City, poses a significant threat to North American supply chains.

Rio Tinto's Canadian operations, which generated $800 million in revenue in the first half of 2024 from the production of iron ore, aluminum, and diamonds, will be particularly impacted in the iron ore and aluminum sectors. The company owns extensive rail networks for these operations. Meanwhile, Teck's Canadian activities include copper, molybdenum, zinc, and lead production and refining.

(With inputs from agencies.)