**Timmins**: The Bucket Shop is navigating tariff hikes amid Canada-US trade tensions by seeking domestic steel and alloy sources, supported by government programmes, as it strives to boost Ontario’s mining supply industry and capitalise on growth in the Ring of Fire mineral region.
TIMMINS – The Bucket Shop, a Timmins-based supplier in the mining industry, is navigating the challenges posed by the ongoing trade war between Canada and the United States. Despite facing increased costs due to tariffs on essential imported materials, the company is leveraging this period of uncertainty to strengthen its local supply chain and explore greater domestic production options.
The company specialises in producing innovative, custom-built mining equipment, notably hardrock mining buckets and boxes. These products require highly specialised steel and cast alloys, traditionally sourced from international suppliers. Currently, The Bucket Shop imports steel from the United States, specifically from a foundry in Alabama known for using advanced technology that produces steel with uniform hardness throughout its thickness—a quality not matched by Canadian facilities. This consistency allows the company and its mining clients to accurately predict the wear rates and lifecycle of their equipment, facilitating more precise operational scheduling.
Jamie Pouw, the business optimisation lead at The Bucket Shop, highlighted some unique features of their American steel supplier: “They show us that that hardness number is the same in the middle of the steel as it is on the surface. So now we have a really, really predictable wear rate.” He further explained that the U.S. foundry also pre-treats the steel by removing mill scale and applying a primer, meaning that when the material arrives in Timmins, it is weather-resistant and ready to use without additional preparation.
However, the introduction of retaliatory tariffs by the Canadian government—25 per cent on specialized U.S. steel and 10 per cent on cast alloys from China—has introduced extra costs, which subsequently affect the company’s pricing structure and its customers. Pouw acknowledged that “the circumstance is unpredictable, as is the person that keeps changing his mind on tariffs or not. We’re all living in a bit of a chaotic, unpredictable time.” Despite this, he noted that “our government is supporting us as the supply chain and is supporting the mining sector,” referring to federal and provincial programmes that help mitigate tariff impacts.
The Bucket Shop’s reliance on cast alloys from China, stemming from the closure of Canadian foundries eight years ago, has prompted the company to reassess the opportunity to develop a local supply network. Pouw mentioned ongoing discussions and evaluations with both provincial and federal governments to bring foundry production back to Ontario. He said, “We, as The Bucket Shop in the supply chain of the mining sector in Ontario, are looking to domestic foundry support and we are reviewing alternatives within the province to move the foundry production to Ontario.”
Pouw also expressed optimism about the potential growth in Ontario’s mining sector, especially in relation to critical minerals within the Ring of Fire region, a significant mineral development area in Northern Ontario. He stated, “That value as the next 80-100 years of mining, along with Canada Nickel for the next 100 years, they truly are protecting that portion of the country. For us to be in that supply chain for the next number of years is very, very compelling because our future looks really, really good.”
The Bucket Shop markets its products primarily across Northern Ontario, with limited exports to the United States, which are handled via a Western Canada dealer network. The company’s strategy reflects a broader trend among Canadian businesses affected by international trade disputes, aiming to reduce dependency on foreign suppliers and enhance local manufacturing capabilities.
In summary, The Bucket Shop is adapting to tariff-induced challenges by pursuing greater domestic sourcing options and benefiting from government support designed to stabilise the mining supply chain. While the current trade tensions have introduced complications, the company views the situation as an impetus to promote and expand Ontario’s mining supply industry.
Source: Noah Wire Services
