The M&E Dispatch // 048

Hello Everyone,

There’s a lot to unpack this week, and on the surface none of it bodes well for Canada’s resource sector. Though there is an opportunity here that we should capitalize on.

The U.S. is actively moving to strengthen trade relations with Russia—the same country they’ve spent the last two years sanctioning. With the latest news being that Russia has offered to sell 2 million tonnes of aluminum to the U.S. as an alternative to Canadian and Mexican supply.

Yep, you read that right...

At the same time, Canada and Mexico are being hit with a 25% tariff on their exports to the U.S., a move that will directly impact our aluminum, steel, and critical minerals sectors. If you feel like the math isn’t adding up, you’re not alone.

Sanctions? What Sanctions?

Since 2022, the U.S. and its allies have maintained strict sanctions on Russian exports—especially on metals and minerals that fuel the war economy. Russian aluminum has long been on the sanctions watchlist because of its ties to oligarch-controlled industries that directly fund the Kremlin’s operations in Ukraine.

And yet, suddenly, there’s talk of bypassing Canada and Mexico—their closest allies—to import aluminum from Russia?

If this deal moves forward, it undermines the entire purpose of sanctions. It also raises a huge ethical and economic question:

• Will U.S. companies that buy Russian aluminum be complicit in funding the war?

• Will consumers demand transparency in their supply chains, much like the conflict diamond crisis?

• Will allies like the EU retaliate with their own trade restrictions on American goods that contain Russian materials?

What’s Really Going On?

This isn't just about aluminum. It's about restructuring global trade networks to position the U.S. as the dominant buyer and price-setter—while Canada gets pushed out of the picture.

Think about what’s happened in just the past few weeks:

1. Canada and Mexico get hit with a 25% tariff.

2. Ukraine is suddenly being painted as the aggressor in the war, while Russia is repositioned as a viable trade partner.

3. The U.S. is making quiet moves to restart imports of Russian minerals, despite existing sanctions.

Now ask yourself: Who benefits?

• Russia gets to funnel its resources into the U.S. market without losing revenue to sanctions.

• The U.S. secures a new supplier of cheap minerals and metals, giving its industries a cost advantage.

• Canada and Mexico—historically the U.S.'s strongest trade partners—are economically weakened, making them more reliant on the U.S.

Canada’s Next Move

Canada produces some of the world’s cleanest, most ethically sourced aluminum and minerals—but none of that matters if buyers are incentivized to go elsewhere for cheaper, tariff-free alternatives.

We’re seeing a shift toward "Buy Canadian" sentiment in sectors like food and energy—now it's time to extend that movement to metals and minerals.

The U.S. may be looking to cut us out of the equation, but there are other markets ready to buy what Canada has to offer. The European Union, Japan, and South Korea are all looking for secure, conflict-free mineral suppliers. If the U.S. wants to do business with Russia, fine—but let’s make sure the rest of the world sees Canada as the better option.

The bigger picture is clear: This isn't just a trade dispute—it's a strategic restructuring of economic power. The question now is, does Canada let it happen, or do we start playing a stronger hand?

Sponsored

// The Dirt

Slow news week from the point of view of Investor Relations and corporate updates. Come on folks, tell your story - these unprecedented times are an opportunity, you just need to share your messaging. - Lee

Exchange Income Corp. Acquires Canadian North for $205M
Canadian North, a key airline serving Arctic communities, is set to be purchased by Exchange Income Corp. for $205 million. This move strengthens regional connectivity in Nunavut and the Northwest Territories.
Read more

Trigon Metals Upsizes Private Placement and Closes First Tranche
Trigon Metals Inc. has announced the closing of the first tranche of its private placement, marking a significant financial move for future projects.
Read more

Sigma Lithium Ramps Up Construction to Double Capacity
Sigma Lithium is pushing forward with its second Greentech industrial plant, doubling its capacity while maintaining its commitment to carbon-neutral lithium production.
Read more

TomaGold Strikes High-Grade Copper at Obalski Property
Drilling results reveal a new North-South trending polymetallic zone, with assays showing 17.4% Cu over 0.4 meters—strong signs for future exploration.
Read more

Tocvan Hits High-Grade Gold in First Drilling at Expansion Area
New drill results at Gran Pilar Gold Silver Project in Mexico confirm strong mineralization, with 19.4 g/t Au over 3.1 meters within a broader 106.8-meter intercept.
Read more

A.I.S. Resources Announces Private Placement and New CEO
A.I.S. Resources has announced a private placement and shares-for-debt transaction, alongside appointing Marc Enright-Morin as its new President and CEO.
Read more

Wolfden Resources Updates on Nevada Gold Property
Wolfden Resources has provided a positive update on its Rockland Project, highlighting exploration progress and upcoming development plans.
Read more

FPX Nickel Plans North America's Largest Nickel Sulphate Refinery
A new scoping study outlines FPX Nickel’s plans to develop a low-cost, low-carbon refinery for the EV battery supply chain.
Read more

Lastly, for those who were expecting my eluded to announcement today - I dropped the ball over the weekend. I spent the weekend prepping for the spring melt and enjoying some sun. Friday, I promise.

Have a great week all.

— Lee

P.S. What’s your take on this aluminum deal? Do you think the U.S. will actually go through with Russian imports and tariffs on March 1st or is this just another bluff? Hit reply and let me know.