Foreign investment in Canada has fallen off a cliff at the very time it’s needed to offset a serious balance of payment issue. Indeed, the weak loonie is undermining the entire country’s ability to attract money from abroad.
Big-money foreign investors were already viewing Canada’s mining assets with widespread apathy. Global mining giant Rio Tinto's increasingly desperate attempts to find bids for its Iron Ore Co. of Canada assets have apparently failed; most recently, The Wall Street Journal reported that China’s Wuhan Iron & Steel (Group) Corp. has walked away. Similarly, the majority of Ontario’s Ring of Fire assets will apparently lie fallow after Cliffs Natural Resources Inc. suspended its $3.3-billion investment in the region.