The Northern Graphite graphite mine in Lac-des-Iles, Que., in 2024. It's one of several Canadian projects that will see investment from countries across the G7.SEBASTIEN ST-JEAN/Getty Images
The Canada-led Critical Minerals Production Alliance has announced an array of investments in Canadian critical minerals projects by Group of Seven countries – infusions that involve mineral purchase agreements, stockpiling and price floors – all in a bid to fight back against Chinese dominance.
The announcement came Friday on the closing day of the G7 energy and environment ministers’ meeting in Toronto.
Canadian projects receiving strategic investments included Nouveau Monde Graphite Inc.’s Matawinie operation near Montreal, Vianode’s synthetic graphite plant in St. Thomas, Ont., Northern Graphite Corp.’s graphite mine in Quebec, Torngat Metals Ltd.’s rare-earths project in Quebec, Rio Tinto Group’s scandium plant in Sorel-Tracy, Que., and Ucore Rare Metals Inc.’s processing plant in Kingston.
The investments are being made as part of a multilateral push to boost the G7’s presence in critical minerals in the face of global domination by China in many of the metals needed for modern economies.
U.S. signs critical minerals, trade deals in Southeast Asia
In his closing ceremony speech at the G7 in Toronto on Friday, Natural Resources Minister Tim Hodgson said the multilateral spending initiative will safeguard Canada’s national security by reducing dependence on China.
“We can leverage multilateralism to address the current crisis we are facing on critical minerals supply chains,” he said.
China this week agreed to ease some of its export restrictions on rare earths sent to the United States after a meeting between U.S. President Donald Trump and Chinese leader Xi Jinping. Beijing had previously severely restricted access to rare earths by the U.S. in retaliation for earlier tariffs imposed by Mr. Trump on China.
To facilitate the stockpiling of critical minerals, Ottawa is invoking the Defence Production Act. At a news conference after his speech, Mr. Hodgson said Canada will stockpile three minerals, but he declined to mention which ones. Companies that supply them will receive a guaranteed floor price.
Earlier: G7 critical minerals pact will take aim at China market manipulation, Minister Hodgson says
Ottawa has also been working with Vancouver-based Teck Resources Ltd., Mr. Hodgson said, to help the company expand capacity at its Trail, B.C., smelter where it produces germanium, a critical mineral that China had previously put U.S. export restrictions on.
“Mechanisms like stockpiling or floor pricing will be necessary to proceed to a construction decision,” Mr. Hodgson said about Trail.
“These are the types of projects this alliance will need to enable going forward.”
Rio Tinto’s scandium plant in Quebec is receiving a $25-million royalty investment from the Canada Growth Fund, and secured an offtake agreement from Ottawa that should help it move into full-scale production. An offtake is a commitment to buy a certain share of production of an operation. The plant could eventually produce about nine tonnes of scandium oxide a year, up from its current three-tonne level, and eventually account for about 20 per cent of the global market. China’s recent restrictions on exports of rare-earth minerals to the U.S. included scandium.
Pierre Gratton, president of the Mining Association of Canada, called the G7 initiative a big step forward for this country, after years of the government highlighting the importance of mining Canadian critical minerals, but only making modest advancements.
“The actions announced today are concrete and will begin to reduce the unsustainable overreliance on China for supplies of too many minerals and metals,” he said. “Canada, with its massive mineral endowment, will be a major beneficiary.”
Torngat Metals’ rare-earths project has secured an offtake agreement and technology agreement with France’s Carester. Torngat is developing the Strange Lake project in the remote Nunavik region of northern Quebec, which contains deposits of dysprosium and terbium, two of the rare earths that China had put U.S. export restrictions on. Torngat plans to have a mine and concentration plant in Nunavik in operation in 2028.
Opinion: Canada needs a critical minerals strategy that actually works
Nouveau Monde Graphite has secured offtake arrangements with the federal government, Japan’s Panasonic Holdings Corp. and Luxembourg-based Traxys.
Northern Graphite, which operates the only graphite mine in North America, secured a letter of intent for an offtake and toll processing agreement with Italy’s Alkeemia SpA.
U.S. Energy Secretary Chris Wright in an earlier news conference on Friday at the G7 summit said the ability to mine, process and refine critical minerals is a strategic necessity for the G7 and its allies, given the continuing risks posed by China.
“China, frankly, just used non-market practices to squish the rest of the world out of manufacturing those products, so it got strategic leverage. Everybody sees that now,” he said.
With a report by Emma Graney