Canada plans to buy stakes in projects that will produce and process key minerals, the country’s natural resources minister said, as part of a broader effort to secure supplies of materials that are controlled by China.
Tim Hodgson said the government has already started studying projects that will receive these equity investments, including mining operations and processing facilities. Those entities would be “deemed in the national interest, but for some reason they aren’t able to find the equity,” he said in a Thursday interview with Bloomberg News.
“For example, some of the rare-earths processing facilities that are being talked about — unless they receive equity-like support, given the stranglehold that certain countries have on those markets, they’re unlikely to happen.”
Critical minerals like lithium and graphite, along with rare earth metals like terbium and dysprosium, are essential to motor engines, consumer electronics and weapons manufacturing. But the bulk of the mining and processing of these materials is controlled by China.
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