One in four mining companies listed on the Toronto Stock Exchange operates in Latin America

Of the 410 mining companies with operations in Latin America, 63% are located in member countries of the Pacific Alliance

The importance of Canada to the mining sector is widely recognized. In fact, 43% of publicly traded mining companies do so on the Toronto Stock Exchange (TSX) or the TSX Venture Exchange (Tsxv). In these segments, Latin America is consolidated as one of the regions with the greatest presence. The companies dedicated to the extraction of minerals that operate in the region represent 25% of the total of this type of companies listed.

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Of the 410 mining companies with operations in Latin America, 257, equivalent to 63%, are located in the member countries of the Pacific Alliance. In Mexico there are 132; in Peru, 62; in Chile, 34, and in Colombia, 29.

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The active participation of Canada within the bloc, first as an observer country and now on its way to becoming the first G7 nation to be part of said group, would result in greater opportunities for companies that are part of the Toronto market, or that aspire get to this.

“The platform is not only aimed at commercial integration, but would also allow the development of common objectives and best practices in a number of sectors, including mining and climate change,” says Guillaume Légaré, director of the TMX Group for South America, which includes the TSX and Tsxv markets in Toronto.

And the fact is that a good part of the new opportunities for mining companies are associated with the global goal of lower emissions, and more specifically, with the so-called energy transition towards cleaner sources.

In its report ‘Minerals for climate action’, the World Bank assures that: “more than 3,000 million tons of minerals and metals will be needed to deploy wind, solar and geothermal energy”.

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In this sense, from Toronto there is a great possibility for Latin America to quickly join the green supply chain, which would lead to the production of minerals, such as graphite, lithium and cobalt, increasing by 500% in 2050.

Similarly, significant amounts of aluminum, copper, silver and zinc will be required for the construction of the infrastructure required for the transition to non-conventional renewable energies.

In addition to the opportunity that arises from the need to create an ecosystem of companies capable of meeting the demand for materials and supplies to produce wind turbines and electric vehicles, access to financing, via emission, is also beginning to be determined by sustainable development.

In Canada, as is also the case in much of the world, institutional investors are increasingly taking into account the environmental and social factors that surround companies.

Currently 3,289 issuers are listed on the Toronto Stock Exchange. One of the advantages that this market offers to Latin American companies interested in being part of it is the transition.

“A company can list on the Tsxv junior market and then move up to the main TSX market when the time is right to respond to the increasing demand for capital. More than 700 companies have gone from Tsxv to TSX. Some of the largest mining companies listed on TSX started trading on Tsxv. About 52% of TSX’s mining stations are Tsxv graduates, ”concludes Légaré.

Given the leading role that Latin America has been playing in the Canadian market, in 2019 the TSX / Tsxv became the first international stock exchange group to establish itself in Latin America.

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From Lima, new growth opportunities are being explored in the Pacific Alliance and in the region in general. In addition to mining, there are other strategic sectors such as energy, traditional and renewable, and innovation, which Canada has been watching with great interest.

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