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Kickstarting Rare Earth Mining and Production Puts Canada in a Policy Bind

A significant payoff is on the table for Canada’s economy if it can kickstart its beleaguered rare earth elements (REEs) mining industry.
Kickstarting Rare Earth Mining and Production Puts Canada in a Policy Bind
An excavator works at Atlantic Gold Corporation's Touquoy open pit gold mine in Nova Scotia in a file photo. Mining is not one of the industries the government is looking to boost; however, Canada has signed up to assist the United States in creating a supply chain for critical minerals that include rare earths. The Canadian Press/Andrew Vaughan
Rahul Vaidyanath
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News Analysis

A significant payoff could be on the table for Canada’s economy if it can kickstart its beleaguered rare earth elements (REEs) mining industry. The problem is that it’s not one of the government’s priorities, such as green energy, despite the fact that the sector needs federal support to dent China’s monopoly and eventually invite private sector investment. Recent regulatory actions further dampen the industry’s prospects.

The United States is seeking a reliable partner to break China’s stranglehold on REEs. Canada has shown it can be just that—it supplies the United States with a quarter of its uranium needs and has been a trustworthy counterparty for over 75 years. Despite Canada having about 40–50 percent of the world’s known rare earth reserves, it is not currently producing any REEs.

Rahul Vaidyanath
Rahul Vaidyanath
Journalist
Rahul Vaidyanath is a journalist with The Epoch Times in Ottawa. His areas of expertise include the economy, financial markets, China, and national defence and security. He has worked for the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York, and Los Angeles.
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