Supplying Critical Minerals to the U.S. War EconomyCanada is increasing its supply of critical minerals to benefit the U.S. war economy. Canadians are not consulted when agreements are reached between the U.S. and Canada and they are opposed to the exploitation and plunder of natural resources to benefit war production. A lot of this is done in the name of a "green economy" and high ideals about creating jobs and economic development which favours the regions, but the truth lies elsewhere.
Provincial and territorial governments, along with the federal government, are already bending over backwards to supply the mining oligopolies with the infrastructure, subsidies and tax breaks these rich private interests are seeking. This was referred to in a presentation made in February by Simon Moores, CEO of Benchmark Mineral Intelligence, to the House of Commons' Standing Committee on Natural Resources: "Pricing is simply a function of supply and demand. It doesn't matter if the market is 10 times the size in the future or if it's the size it is now. Lithium, for example, is going through a period of shortage right now, so the price is going up. In the last four years, when the EV [electric vehicle] demand increased 30 per cent for lithium, the price was coming down at that time. "What happens when lithium's price stays down, and the same for cobalt? If it stays too low for too long, you just don't get investments in new mines. There's always an incentive price to bring on a new supply. As a result, at the moment, because it's left to the capital markets, you're not getting the money for those new mines, and that's really where there could be a role for the government to play and underpin that."[1] In other words, it will be up to the Canadian state and different levels of government to take all the risks and subsidize these mining companies through all kinds of pay-the-rich schemes. Here is what Liz Lappin, President of the Battery Metals Association of Canada (BMAC) said to the Standing Committee on Natural Resources that same day: "The first area of focus is support for critical minerals project development. The World Bank and a host of forecasters anticipate greatly increased global demand for critical minerals in the years ahead. While Canada has an abundance of resources, they have been slow to develop due to a variety of challenges. Examples include high volatility in emerging pricing, competition for capital against established critical minerals jurisdictions, the highly complex nature of battery metals production, and delays in regulatory and policy development. Canada needs to move swiftly to support the needs of its domestic economy. "To support critical minerals development, BMAC recommends financial support for qualified domestic battery metals companies that are capable of demonstrating viable prospective projects; promoting exploration and identification of resources by amending the Income Tax Act to ensure that lithium brine resources are eligible for flow-through shares; encouraging provinces to rapidly develop responsible yet industry-friendly mineral policy and regulations to accelerate critical mineral resource development; and promoting streamlined tenure and regulatory frameworks to incentivize responsible development. Finally, we recommend prioritizing innovation funding for industry cluster applications, which would incent Canadian collaborations and strengthen connections along the supply chain."[2]
"Critical minerals are essential components of many new technologies, from low-greenhouse gas energy sources to electric vehicles to advances in cutting-edge sectors such as medicine, electronics, aerospace and defence." In the same report the Committee underscored the importance of "securing a supply of critical minerals ... because access to these resources is not entirely stable and production is concentrated in a few countries, notably China." In addition, it said that "Canada could also pursue a 'continental' approach to guarantee a supply of critical minerals in cooperation with the provinces and territories, as well as the United States," in order "to compete with other regions that are major players in the sector, namely, Asia and Europe."[3] The Committee made important key recommendations that are a call for more pay-the-rich schemes and the further integration of Canada into the "continental" U.S. war economy. The first two recommendations are: "That the Government of Canada work with the provincial and territorial governments, Indigenous communities and governments, the mining industry and research and education institutions to develop a strategic vision for developing Canada's critical minerals industry;" and "That the government of Canada renew its support for the Canadian mining sector so that it can take advantage of the many opportunities offered by developing critical minerals and recognize their unique contribution to advanced technologies and the energy transition by: - increasing its capacity to carry
out geoscience work...; The natural and social environment cannot be harmonized unless the people oppose government pay-the-rich schemes, as they are presently doing in actions from coast to coast to coast. By relying on themselves, Canadians can achieve a sustainable economy that provides for all, respects their rights and is human-centred. No
to Pay-the-Rich Schemes in the Name of a "Greener
Economy"! Notes1. Simon Moores, CEO, Benchmark Mineral Intelligence, presentation to the Standing Committee on Natural Resources Committee of the House of Commons, Feb. 22, 2021. 2. Liz Lappin, President, Battery Metals Association of Canada, presentation to the Standing Committee on Natural Resources of the House of Commons, Feb. 22, 2021. 3. "From Mineral Exploration to Advanced Manufacturing: Developing Value Chains for Critical Minerals in Canada," Report of the Standing Committee on Natural Resources, Ottawa, June 2021.
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Canadian
provinces and territories and Quebec are already
the sites for the
extraction of critical minerals for the U.S. war
industry including
nickel, cobalt, scandium, uranium, etc. or will
soon start production
of other critical minerals including lithium, rare
earth elements (REE)
and graphite, in such places as the Yukon,
Saskatchewan, Ontario,
Quebec and Newfoundland.
The House of
Commons' Standing Committee on Natural Resources
issued a report in
June entitled "From Mineral Exploration to
Advanced Manufacturing:
Developing Value Chains for Critical Minerals in
Canada." It states: