Vancouver, B.C. – The Mining Association of British Columbia welcomes today’s commitment by Prime Minister Trudeau and U.S. President Biden to enhance bilateral cooperation to build a resilient and environmentally responsible North American critical minerals supply chain.
“The fact this was a key agenda item in Canada-U.S. bilateral discussions demonstrates the significant and growing role critical minerals play in meeting our collective security and defence needs, as well as our decarbonization objectives,” said Michael Goehring President and CEO of MABC.
“The most important strategic partnership for Canada – and Canadian mining – is our relationship with the United States. Canada supplies 13 of the 35 minerals the U.S. has identified as critical to their economic and national security. As the U.S. and Canada continue to onshore critical minerals extraction and processing, there are major opportunities for the B.C. and Canadian mining sector,” said Goehring.
Joint efforts to accelerate North American critical minerals development have been strengthened by both governments, particularly in the last year. The U.S. federal government introduced the Inflation Reduction Act in 2022, committing over US$370 billion in tax credits and other financial support to produce EVs, renewable energy technologies and critical minerals. In Canada, the Trudeau administration earmarked CAD$3.8 billion in the 2022 Federal Budget to support the implementation of a national Critical Minerals Strategy, with expectations of more in Budget 2023 next week. These actions build on the 2020 Canada-U.S. Joint Action Plan on Critical Minerals Collaboration that was launched to advance bilateral efforts to secure supply chains for critical minerals needed for strategic manufacturing sectors.
Today, both leaders further committed to conduct a joint analysis on the capacity, gaps and needs of the Canada-U.S. critical minerals value chain. Prime Minister Trudeau and President Biden also announced the formation of one-year Canada-US Energy Transformation Task Force to accelerate and strengthen cooperation on clean energy opportunities as well as continental electric vehicle and critical mineral supply chains.
“The pace of critical mineral production must be accelerated for Canada and the U.S. to meet our climate and security objectives, and ensure we are not dependent on countries governed by authoritarian regimes for mineral supplies and processing capabilities. It is vital for both our environment and economy that we continue to prioritize and accelerate joint efforts to secure and process critical minerals that adhere to the highest ESG standards,” said Goehring.
“In B.C. and Canada, the key factor to advance our critical minerals opportunity is meaningful consultation and engagement with Indigenous nations that leads to free, prior and informed consent,” said Goehring. “Building the capacity of Indigenous nations so they can fully participate on an equitable footing with government and industry in critical mineral projects is essential.”
“At the same time, the provincial and federal governments must work together to fix slow permitting processes that are a long-standing challenge for the B.C. and Canadian mining industries. At stake is our ability to contribute to meaningful climate action, develop the Canada-U.S. battery and EV industries, and advance economic reconciliation with Indigenous peoples,” noted Goehring.
As a further measure of greater cooperation, President Biden invoked Section 303 of the Defense Production Act of 1950 (DPA) to spur domestic critical materials production and transitional support for collaboration with allied producers of critical minerals. Importantly, the DPA includes Canada as a domestic critical minerals source which enables Canadian companies to apply for U.S. government funding for exploration, production, productivity enhancements, and recycling technologies for critical minerals projects in both the U.S. and Canada.
About the Mining Association of British Columbia MABC is the voice of British Columbia’s steelmaking coal, metal and mineral producers, smelters, and advanced development companies. Our industry benefits all British Columbians and supports more than 35,000 jobs and over 3,700 small, medium, and Indigenous affiliated businesses in every corner of the province through an annual spend of nearly $3 billion on goods and services. Our members’ products have among the lowest carbon footprints globally and are helping the world transition to a cleaner, low-carbon future; safely and responsibly.
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