Teck Resources CEO in Critical Minerals Support Plea
The Canadian mining industry faces a significant challenge in developing its critical minerals sector, according to Teck Resources CEO Jonathan Price.
Speaking at an event in Ottawa, he highlighted the disparity between government support for downstream industries and the mining sector itself.
Teck Resources -- a diversified mining company headquartered in Vancouver -- produces copper, zinc, and steelmaking coal. Price's comments underscore the growing concern within the industry about Canada's competitiveness in the global minerals market.
He noted that that, while both the US and Canada are focused on developing electric vehicle (EV) and battery manufacturing sectors, support for mines and mineral processing continues to lag. This imbalance could potentially hinder the growth of the entire supply chain.
The CEO pointed out the significant public subsidies pledged by the Canadian federal government to international companies. These include Volkswagen AG, a German multinational automotive manufacturer, Northvolt AB, a Swedish battery developer and manufacturer, and Stellantis NV, a multinational automotive manufacturing corporation.
Critical minerals essential for battery production
Critical minerals, including lithium, cobalt, and rare earth elements, are essential components in the production of batteries for electric vehicles. These minerals are also crucial for various other high-tech and renewable energy applications.
Price emphasised the importance of supporting the entire supply chain, stating, "Support for car and battery plants, absent support for the mines needed to support them, is like starting a farm-to-table restaurant — without bothering to plant the farm."
The Teck Resources CEO also highlighted Canada's "cumbersome regulatory processes" as a significant barrier to investment in the mining sector. These processes, including lengthy permitting times, make the sector less competitive compared to international rivals.
Price called for "ambitious, targeted government incentives and investment" to grow critical minerals capacity in North America. This approach would aim to streamline regulatory processes and encourage investment in the mining sector.
International competition intensifies in critical minerals
Price's comments come as North American governments push to re-shore productive capacity and reassert control over resource supply chains. This effort is partly in response to mounting criticisms of China flooding markets with cheaper products.
Both the United States and Canada have begun to levy tariffs on Chinese electric vehicles, as well as steel and aluminium products. These measures aim to protect domestic industries and encourage local production.
US Ambassador to Canada David Cohen, speaking after Price's address, echoed the need for prioritising and encouraging investment in the mining sector. Cohen emphasised the role of the private sector in solving sustainability challenges in mining.
The ambassador pointed to the Defense Production Act Investments program in the United States, which has provided funding to Canadian mining companies. Fortune Minerals Limited, a Canadian mining company focused on cobalt, gold, bismuth, and copper, and Lomiko, a Canadian company exploring for graphite and lithium, have both received support from this program.
China's aggressive investment in critical minerals
Price highlighted the disparity in government spending on critical minerals between Canada and China. He noted that while Canada's government has committed C$4 billion ($2.9 billion) in spending over eight years, China spent C$20 billion in 2023 alone.
This significant investment by China demonstrates its aggressive approach to consolidating its dominance in the critical minerals sector. Price emphasised the importance of this issue, stating, "It's about economic security, it's about energy security, and it is about national security."
Deputy Prime Minister Chrystia Freeland, speaking at a news conference in Toronto, addressed the concerns raised by the mining industry. She highlighted the government's efforts, including the first Canadian critical minerals strategy and investment tax credits for green projects worth more than C$90 billion.
Freeland acknowledged the need for collective action to support miners and processors in the face of targeted Chinese actions. She stated, "We at the G-7, working with partners, working with all political allies in this space, really need to find collective ways to support our miners, our processors."
