Bloomberg News | December 3, 2024
Mining Association of Canada president and CEO Pierre Gratton.
Credit: Mining Association of Canada
China’s move to ban exports of rare metals to the US underscores the need for trade cooperation between mineral-rich Canada and its southern neighbor.
That’s the message from the Mining Association of Canada, which argued that China’s decision to curb shipments of gallium, germanium and other key metals to the US is “a stark reminder of the challenges posed by geopolitical tensions, particularly on the reliable supply of critical minerals.”
The statement from the mining association follows the escalation of trade tensions with the US, after President-elect Donald Trump threatened to slap 25% tariffs on all goods coming from Canada and Mexico unless the countries each do more to stem migration and fentanyl.
“Imposing tariffs on Canadian mineral and metal exports to the US would run counter to the shared goals of secure and reliable supply chains,” Pierre Gratton, the mining association’s president, said in Tuesday’s statement. “Such measures risk disrupting the essential flow of these resources, undermining the competitiveness of North American industries, and exacerbating vulnerabilities in critical mineral supply chains that both nations are working to address.”
More than half of Canada’s mineral exports — valued at more than C$80 billion ($56.9 billion) — were destined for the US in 2022, according to the Canadian group. Its members include Barrick Gold Corp., Agnico Eagle Mines Ltd., Cameco Corp., BHP Group and others.
Meanwhile, Vancouver-based metals producer Teck Resources Ltd., one of the world’s largest integrated germanium producers, said it’s looking at ways to boost its output of the metal in the wake of China’s export ban.
Germanium’s uses include fiber optics, night-vision goggles and space exploration. Most satellites are powered with germanium-based solar cells. Canada was responsible for supplying nearly half of the US’s import needs of germanium between 2019 and 2022, according to the US Geological Survey.
(By Jacob Lorinc)
China’s move to ban exports of rare metals to the US underscores the need for trade cooperation between mineral-rich Canada and its southern neighbor.
That’s the message from the Mining Association of Canada, which argued that China’s decision to curb shipments of gallium, germanium and other key metals to the US is “a stark reminder of the challenges posed by geopolitical tensions, particularly on the reliable supply of critical minerals.”
The statement from the mining association follows the escalation of trade tensions with the US, after President-elect Donald Trump threatened to slap 25% tariffs on all goods coming from Canada and Mexico unless the countries each do more to stem migration and fentanyl.
“Imposing tariffs on Canadian mineral and metal exports to the US would run counter to the shared goals of secure and reliable supply chains,” Pierre Gratton, the mining association’s president, said in Tuesday’s statement. “Such measures risk disrupting the essential flow of these resources, undermining the competitiveness of North American industries, and exacerbating vulnerabilities in critical mineral supply chains that both nations are working to address.”
More than half of Canada’s mineral exports — valued at more than C$80 billion ($56.9 billion) — were destined for the US in 2022, according to the Canadian group. Its members include Barrick Gold Corp., Agnico Eagle Mines Ltd., Cameco Corp., BHP Group and others.
Meanwhile, Vancouver-based metals producer Teck Resources Ltd., one of the world’s largest integrated germanium producers, said it’s looking at ways to boost its output of the metal in the wake of China’s export ban.
Germanium’s uses include fiber optics, night-vision goggles and space exploration. Most satellites are powered with germanium-based solar cells. Canada was responsible for supplying nearly half of the US’s import needs of germanium between 2019 and 2022, according to the US Geological Survey.
(By Jacob Lorinc)
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