Canada needs to move quickly on production of critical minerals, IEA says

The Director-General of the International Energy Agency said Canada will take a global leadership role to rapidly increase production of critical minerals and protect itself from the energy security crisis posed by countries that use fossil fuels as weapons. said it had to be done.

At a government-sponsored panel discussion in Ottawa on Wednesday, Fatih Birol said the world will move to cleaner fuels if the West does not increase the availability of rare earth minerals and develop more friendly sources. He warned that as time passes, the energy shortages that currently plague Europe could repeat itself. .

These minerals are central to the net-zero energy sources that Birol said should replace traditional fossil fuel-emitting energy. Just as Russia uses oil and gas as weapons, the same could happen to its supply of critical minerals, he said.

“As a world, we have to learn from this bitter experience,” said Birol, sitting next to Federal Minister of Natural Resources Jonathan Wilkinson. But so far, oil and gas supplies have been concentrated in key minerals that only a few countries have on the market, Birol said. Current production and refining of important minerals is concentrated in a handful of countries. China.

Birol said he would like countries like Canada to be more involved on the international stage because of “the rule of law, transparency and government accountability.”

The sooner it is, the better, he said.

This is a demanding and sometimes cumbersome situation for Canada, where state and federal regulators are involved in approving mines.prime minister Justin Trudeau Liberal governments have vowed to cut the red tape that plagues the industry. The promise came true last year after heavy criticism. Canada risks being left behind A global scramble to secure vital minerals.

It can take up to 25 years for mineral mines to go into production, much slower than international competitors such as Australia. Wilkinson told reporters after a panel discussion that it would take an average of 12 to 15 years, but added that was still too long.

“If it takes 12 to 15 years, you’re going to have a serious problem,” he said.

Wilkinson said Wednesday that “we must find ways to move faster” to meet domestic and international demand for the critical mineral. However, he did not set a deadline for negotiations with states and territories to revamp the regulatory process, nor did he say how long he believed to be a reasonable timeframe for regulatory review. He said it may vary by state.

Important minerals are used in net-zero technologies such as electric vehicle batteries and solar and wind power.

Australian mining giant Wyloo Metals Pty Ltd. paid more than $500 million for the most promising asset in the long-delayed Ring of Fire project in Ontario earlier this year, but how the permitting process in Canada has changed. I was yelling about how late it was. Company executives recently met with Canadian politicians to appeal for cuts in bureaucracy.

Renowned Canadian academic and conservative Jack Mintz also takes issue with excessive federal mining regulations, arguing in a December report with colleague Philippe Bazelle: Framework. “

The pair also said Canada is unlikely to benefit significantly from an explosion in global demand for critical minerals because of its scarce reserves, with most of these minerals for the North American energy transition , South America, Africa, and the Caribbean, Australia, and China.

Citing global data on significant mineral reserves from the U.S. Geological Survey, the authors say Canada is a minor player in the areas of lithium, cobalt, copper, graphite and nickel, all of which contribute to electricity, etc. of low-carbon energy use. car battery. Reserves are minerals in the earth that have proven economic viability.

Still, Mr. Wilkinson insisted that Canada would not miss an important mineral competition. Ottawa is working to harmonize, coordinate, and streamline its permit and environmental review processes to avoid the duplication that often occurs when federal and state governments are involved.

“We are very focused on how we can move forward faster in a way that respects the environment and respects the rights of indigenous peoples.”

With a focus on environmentally and socially responsible production, Birol believes Canada should be a ‘champion’ in this area.

Wilkinson said there are other opportunities for Canada in important minerals besides mining, saying extracting lithium from brine, for example, is “much easier and faster to do than starting a whole new mine. ‘ said.

After recent talks with his Australian counterpart, he said relations between the allies on critical minerals are more about cooperation than competition, which could help facilitate and improve production.

“There’s a lot of demand. If we’re going to carry out an energy transition, it would be better to actually find a way to partner and facilitate the work that both of us are doing,” he said.

This could include countries drawing lessons from each other’s regulatory processes and investment instruments.