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Canada’s Mining Experts Call for A Rare Earth Protection Mechanism

Posted by: Chris Na 2021-10-28 Comments Off on Canada’s Mining Experts Call for A Rare Earth Protection Mechanism

Canada’s Mining Experts Call for A Rare Earth Protection Mechanism

Category: tungsten’s News
Published on Tuesday, 20 April 2021 19:55

The mining experts in Canada call for the establishment of a rare earth protection mechanism amid the fears of China's looting. China holds approximately 80% of the global strategic mineral processing and continues to control Canadian mineral resources, attracting the attention of Canadian mineral experts.

Canadian rich natural minerals are an indispensable part of the global science and technology strategy. China has acquired a number of Canadian mineral resources companies. As the threat from China expands, mining experts have warned the Canadian government that it needs to protect and develop its minerals in a planned way so as not to allow China to plunder critical resources.

The Natural Resources Committee of the Canadian Parliament has held a series of hearings in the past month on the threats and challenges faced by the "Canadian critical minerals projects and supply chain development" and invited dozens of expert witnesses to criticize the risks faced by the industry.

Lots of experts have mentioned the era of new technology. Strategic products including electric vehicles, solar panels, wind turbines, mobile phone components and missiles are inseparable from the so-called "rare earths." China dominated the market in 2009. Robert Fung, chairman of Torngat Metals, a Canadian mining company, testified before Congress: "Now China has accumulated about 80% of the world's strategic mineral processing capacity. This is an unacceptable situation. As the country may use this position to manipulate prices."

Canada owns a large number of unproven rare-earth reserves, and has nearly one-third of the world's most advanced mining technology. Of the 63 advanced rare earth projects tracked by Technology Metals Research, the country accounts for 20, which specializes in strategic materials.

Pierre Gratton, head of the Canadian Mining Association, mentioned that because of mining costs and marketing channels, Canadian companies cannot develop at full speed, and many can only be acquired by Chinese companies. "China has been carrying out similar control over the production and distribution of critical minerals, which puts a certain degree of risk in other parts of the world and prevents investors from entering these markets."

Simon Moores, managing director of Benchmark Mineral Intelligence, a London-based global mineral price data provider, warns that global demand for electric vehicles is rising, and by 2030, China will hold 67% of the world’s lithium-ion battery production capacity, Europe accounts for 18%, while North America has only 12% productivity. He called on the country to catch up quickly in the global battery race and to cooperate with Western allies for development.

At present, the United States and Canada have a preliminary consensus on jointly developing key minerals and stabilizing the supply chain. Last month, the U.S. Department of Commerce held a meeting with miners and battery manufacturers to discuss how to spur the output of Canadian electric vehicle materials. Earlier, US President Biden and Canadian Prime Minister Trudeau pledged to establish an electric vehicle supply chain between the two countries.

Due to continuous warnings from Canada’s mining experts of setting up rare earth protection mechanism, Ottawa is prepared for the acquisition of Canadian mineral companies by Chinese state-owned enterprises. At the end of last year, Ottawa rejected the proposal of the Chinese state-owned Shandong Gold Mining Co., Ltd to acquire Canadian TMAC Resources.

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