19.9 C
Belgrade
Supported byspot_img
spot_img

Chinese Investors Deepen Commitment to Canadian Rare Earth Mine

Member of Europium Groupspot_img
Supported byspot_img

A Chinese company is buying from and investing in a rare earth mining project in Canada’s Northwest Territories, which is sure to raise eyebrows both north and south of the border. The Nechalacho Mine was ranked in 2023’s top 10 rare earth mining projects by mining.com and is described as a cornerstone of North America’s critical minerals industry. But now, Vital Metals, an Australian company that owns the Nechalacho mine, located east of Yellowknife, has revealed that China-based Shenghe Resources has acquired a 9.9% stake in the company for AU$5.9 million. Shenghe will also purchase Nechalacho’s stockpiled rare earth material for AU$2.6 million.

Currently, China has a lock on production of 60% of the world’s rare earth supply. The Biden administration is keen to break that dominance and is even offering cash to Canadian firms to do so. The hopes were that Nechalacho would curb Canada’s dependence on China for these materials, key to the development of low-carbon tech. Earlier this year, Canadian PM Justin Trudeau toured the Saskatoon processing plant that was to receive Nechalacho’s production, touting the federal government‘s investment of CA$5 million in the facility.

A few months later, however, Vital Metals paused construction and then abandoned the plant, placing the Canadian subsidiary that had been building it into bankruptcy. The infusion of capital from Shenghe was seen by some local politicians as a way to save the project, but others saw it as “a betrayal.”

Supported by

A number of Canadian federal MPs appear to agree: Last Thursday, members of the House of Commons Standing Committee on Industry and Technology passed a motion by six votes to five urging Industry Minister François-Philippe Champagne to review the Shenghe transaction and intervene under the Investment Canada Act, which allows for national security reviews of foreign investments in Canada.

When asked about the status of the review, an Industry Department spokesperson said the Canadian government is aware of the “proposed transaction” but that confidentiality provisions under the Investment Canada Act preclude it from commenting on reviews. He added however that, “The government has not hesitated and will not hesitate to take action on transactions that would be injurious to Canada’s national security.”

 

Source: Gzero

Supported byElevatePR Digital

Related News

Overcoming the copper supply challenge: Implications for U.S. renewable energy goals

A recent University of Michigan study sheds light on a concerning gap in copper production essential for meeting renewable energy targets in the United...

Unlocking renewable energy potential: The role of renewable hydrogen in storage and decarbonization

Renewable electricity can be effectively stored by converting it into renewable hydrogen or ammonia through the process of electrolysis. These fuels can be utilized...

Empowering renewable energy: Harnessing the potential of renewable hydrogen for storage and decarbonization

Batteries play a crucial role in providing short-term flexibility to the energy system, offering advantages such as geographical and sizing flexibility. Unlike some other...

Energy storage: Enabling clean alternatives and job creation in coal-dependent regions

Energy storage is particularly relevant to carbon-intensive and coal regions, as it provides a cleaner alternative to hard-to-abate industries and traditional fossil-fuel-powered thermal plants...
Supported by
Supported by
Supported by
error: Content is protected !!