Even though several Canadian mining businesses are in part owned by Chinese entities, the Biden administration is looking to invest in Canadian mining projects to support President Joe Biden’s campaign for green energy.
The Department of Defense has allocated more than $1 billion to assist the United States in obtaining more rare earth minerals from Canadian and other “domestic” sources, which are required to create “clean energy” technology.
But according to a Bloomberg investigation, Chinese firms have a sizable stake in important Canadian mining firms and have taken part in 89 publicized acquisitions and investments in those firms over the previous ten years.
“The Biden administration knows it will be too difficult to take on environmental activists in opening up/expanding U.S. mining infrastructure,” according to Mark Mills, a senior scholar at the Manhattan Institute.
According to Bloomberg, shares in at least 27 publicly listed Canadian metals and minerals businesses are owned by Chinese investors. Chinese ownership and investments in mining in Canada are estimated to be valued up to $14 billion overall.
According to Bloomberg, Sinotech Hong Kong, a Chinese minerals company, is the largest investor in Nickel North Exploration, a Canadian copper miner, and currently holds a 49.7% share in the business.
Ivanhoe Mines, a Canadian mineral corporation, is owned by two of the company’s main shareholders—Zijin China’s Mining Group and a branch of the state-owned Citic Metal Group—who together hold 39.5 percent of the company.
According to a government statement, Canada declared in late October that it will make it harder for state-owned or run businesses to acquire shares in the Canadian essential minerals industry.
The degree to which a foreign nation may manage assets, the level of industry rivalry, and if the agreement may imperil national security are a few of the variables that will be taken into account.
“It would be fairly easy for them [the Canadian government] to stop an outright acquisition or take over but expunging capital absent formal ‘sanctions’ it is not really feasible and frankly dangerous precedent,” according to Mills.
In order to speed up his rapid switch to green energy while reducing America’s reliance on “unreliable foreign sources” for vital minerals like lithium and cobalt, Biden invoked the Defense Production Act from the Cold War in March.
More on this story via The Western Journal:
Biden aims to make the U.S. economy carbon neutral by 2050 and his administration must acquire more materials to produce batteries to power electric cars and store electricity produced by renewable energy sources.
“Demand projections are staggering and it takes time to stand up a new mine; the Defense Production Act does nothing to streamline the permitting process, which is something that’s sorely needed,” a National Mining Association representative told the DCNF.
The law enables the DoD to take actions to increase the procurement of rare earth minerals and Congress has allocated a total of $1.1 billion to support the law’s activities in its Ukraine aid and climate spending bills. Although the law stipulates only domestic sources may benefit from government funding, Canadian businesses are considered domestic sources, according to a June White House report. CONTINUE READING…