Mining Forum: US needs Canada to break China’s minerals grip
Washington’s hostility towards Canada threatens its effort to reduce dependence on Chinese minerals, former U.S. sanctions official said.
Former U.S. sanctions official Edward Fishman warned that Washington's hostility toward Canada could hinder efforts to reduce the country's dependence on Chinese minerals. Fishman, speaking at the Mining Forum Americas in Colorado Springs, emphasized that the U.S. needs Canadian and Australian mining expertise to develop these resources.
He argued that working more closely with Canada and Australia would bolster U.S. economic security, as the nation cannot achieve this goal without Canadian assistance. The warning underscores the contradiction in Washington's minerals strategy, which seeks to secure supplies through cooperation with allies despite trade disputes that strain those relationships.
For miners, this presents both an investment opportunity and uncertainty about where to build, process, and sell their output. Fishman noted that mining has become central to competition previously dominated by finance and technology, with countries exploiting their control over essential supplies and reducing their vulnerability to restrictions imposed by rivals.
China's dominance in the mineral-processing industry, accounting for 91% of global refined output of rare earths in 2024, highlights the concentration of power in this sector. This control has significant implications for industries reliant on these minerals, such as magnets. Fishman cautioned against viewing economic confrontation as a temporary feature of the Trump administration, as past administrations have increasingly relied on economic pressure.
He highlighted Centerra Gold's example of restarting its Thompson Creek molybdenum mine in Idaho, targeting production in 2027, as evidence of the industrial opportunities arising from this shift. Centerra CEO Paul Tomory emphasized the business's attraction in the context of the U.S.'s reindustrialization efforts, particularly in the steel supply chain.
Meanwhile, Hecla Mining CEO Rob Krcmarov argued for the investment value of operating in lower-risk countries, citing the security of cash flows from its silver mines in Alaska, Idaho, and Yukon. These perspectives illustrate the complexities and opportunities presented by the evolving geopolitical landscape in the mining sector.
Written by urgent.news from Mining.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
