In a first, Canada has blocked the sale of stockpiled rare earth elements mined in the far north to a Chinese corporation that dominates the field, a senior government official divulged Tuesday.
However, more similar interventions may follow as Ottawa "cracks down on Chinese investment in Canada's mining sector," according to an official who spoke to AFP on condition of anonymity, because they were not authorized to talk publicly about the topic.
Australia's Vital Metals had planned to sell the minerals to China's Shenghe Resources, but Resources Minister Jonathan Wilkinson "stepped in to facilitate a deal so that the materials could stay in Canada," according to the source.
The stockpile was instead sold for Can$3 million (US$2.2 million) to the Saskatchewan Research Council, which is building processing facilities.
Canada claims the minerals are a national security issue critical to its economic decarbonization agenda.Rare earth elements and other key minerals, such as lithium, cadmium, nickel, and cobalt, are critical components in electric car batteries, wind turbines, and other applications
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