A provincial mining industry leader says B.C. could end up profiting from trade tensions between China and the United States over critical minerals.
Michael Goehring, president and chief executive officer of the Mining Association of British Columbia, said Wednesday, (Dec. 4), that China's decision to ban exports of certain critical minerals and rare earths to the United States demonstrates why it is "vital" for Canada and the U.S. to reduce their dependence on authoritarian regimes for critical mineral supplies and mineral processing.
"British Columbians can play a key role in providing the critical minerals the U.S. and our other allies need in the years to come," Goehring said. "B.C. has, or produces, 16 of the 50 minerals the United States has identified as being critical to the nation鈥檚 economic and national security. In fact, seven per cent of B.C.鈥檚 exports to the US in 2022 were critical minerals and metals, including aluminum, germanium, gallium, indium, lead and zinc."
China announced Tuesday, (Dec. 3), that it would immediately ban sales of gallium and germanium among other minerals to the United States following the U.S.'s decision to limit Chinese access to American-made digital technology.
China is world's leading supplier of many minerals used in technologies deemed critical in fields like transportation, communication and alternative energy, all of which have a military and security dimension. Chinese efforts to use its dominance in these materials as leverage have not gone unnoticed, as several western jurisdictions have sought out alternative suppliers, including Canada.
"In fact, Canada and the U.S. initiated the Joint Action Plan on Critical Minerals Collaboration in 2020 under President Trump to reduce our vulnerability," Goehring said." China鈥檚 export ban highlights the need to accelerate our efforts through the Joint Action Plan to grow a resilient North American critical mineral supply chain and advance our mutual economic, defense and security objectives."
China鈥檚 critical mineral export ban to the U.S. comes while President-elect Trump has threatened to apply 25 per cent across the board tariffs on Canadian and Mexican imports to the United States.
Goehring added that imposing tariffs on Canadian mineral and metal exports to the U.S. would run counter to the shared goals of the Canada-U.S. Joint Action Plan on Critical Minerals Collaboration and could disrupt the flow of B.C. and Canadian critical minerals and metals to the United States when they are needed most to reduce the United States鈥� dependence on Chinese mineral imports.
With 17 new critical mineral projects under development, British Columbia can make what Goehring called "a meaningful contribution to North America鈥檚 future" while creating jobs for workers, stability for resource communities and shared prosperity throughout B.C.
"But these benefits can only be realized if we modernize and expedite the mine permitting and approval process," he said. "(We) are in a race and we need to act quickly. Ongoing permitting delays and uncertainty needlessly drive away investment and lead to deferred or unrealized economic benefits. We need mine permitting to be a competitive advantage for our province."
