Federal government needs to protect critical minerals industry as China tightens grasp, report says

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The study by the Commons natural resources committee details how Ottawa has failed to secure supply chains for the strategic minerals, which could have major…

China for decades has invested heavily in acquiring strategic mineral assets in Africa and elsewhere, and now possesses as much as 80 per cent of global processing capacity for rare earths. It also refines around 80 per cent of battery chemicals, the committee report said.

At the same time, the capital-intensive nature of mining lesser-known commodities, or to build downstream capacity for those minerals, will require investments in infrastructure by both provincial and federal governments, it said. Ottawa more generally needs to deepen ties with Europe, the U.S. and Japan as a way to strengthen non-Chinese supply chains.

He said China’s efforts to control strategic minerals “frequently” comes up in conversations with mining executives and others, and he said there is widespread realization of the need to develop the province’s resources. Simon Moores, managing director of Benchmark Mineral Intelligence, told the committee that China is likely to possess 67 per cent of global capacity to build lithium-ion batteries by 2030, due in large part to significant investments the country has made, including in several “mega factories.” North America, by comparison, will have just 12 per cent of the market, according to BMI research.

 

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No, they need to get great prices! And invest the profits in Canada instead of selling them if you multinationals. Or selling the rights to extract to friends.

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