It’s time to establish strategic reserves for critical minerals
From the acquisition of a rare earths stockpile from a mine in the Northwest Territories to the purchasing of stakes in Canadian miners Solaris Resources and First Quantum, a recent spate of Chinese investment in Canadian mining projects has rightly sparked concerns. In the past three years, many Western nations including Canada have put out critical minerals strategies to promote friendly sources of supply and mitigate Chinese dominance in the sector. Yet we are still falling behind.
At the same time, one empathizes with Canadian miners looking to China for investment; they are not finding it anywhere else. Junior and mid-sized miners are starved for capital even as Western politicians are proclaiming their commitment to the sector. Thankfully, there is a solution to the challenge of both reducing dependence on Chinese-controlled exports and boosting Western investment in our own supply. It is time to establish strategic reserves for critical minerals.
The concept has plenty of precedent. While many today will know the International Energy Agency (IEA) from its efforts to transition off fossil fuels, it was originally created in 1974 following a series of oil shocks with a mandate to mitigate oil supply disruptions. Its members include most of Europe, North America, Japan, Korea, New Zealand, and Australia.
Its primary tool for managing oil supplies was the establishment of strategic reserves. IEA members are required, to this day, to hold oil stocks equivalent to at least 90 days of net imports (Canada, as one of a handful of oil exporters in the IEA, requires no such reserve).
For the rest of this article: https://thehub.ca/2024-02-12/heather-exner-pirot-why-critical-minerals-are-key-to-canadas-global-influence/