Nervous nations calling Canada’s energy minister after Iran strikes | CBC News
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Energy Minister Tim Hodgson says he’s starting to get calls from countries about how Canadian energy producers can fill the gap amid the conflict in Iran, which is driving up oil and gas prices.
“The world right now is feeling incredibly insecure as a result of this weekend,” Hodgson said in an interview with CBC News. “So we’ve already seen an uptick in inquiries about how quickly Canada can expand its clean and conventional energy exports.”
Hodgson did not say which countries were calling, but he acknowledged that it could take some time for Canadian producers to respond.
“You don’t change the amount of production of LNG or oil in days,” he said.
The minister made the comments on the sidelines of a conference in Toronto that’s billed as one of the world’s largest mining conferences. He said the war in the Middle East and the threat of supply shocks underscore the need for Canada to develop its natural resources.
CBC’s senior business correspondent Peter Armstrong explains what’s happening around the critical shipping lanes in the Strait of Hormuz on Monday as conflict escalates following U.S. and Israeli attacks on Iran.
In a keynote speech primarily focused on critical minerals, Hodgson said Ottawa believes these valuable rocks and metals are not only critical to Canada’s sovereignty but also to the security of our allies. Moreover, the minister said they offer leverage in current trade negotiations.
Without mentioning the United States, Hodgson said the federal government is accelerating domestic mining to strengthen its hand in discussions and other countries.
“In trade negotiations … our critical minerals are cards in our hands — giving us an advantage as we engage in the world as it is, not as we wish it to be,” said Hodgson during his keynote speech at the Prospectors & Developers Association of Canada conference in Toronto.
Washington’s aggressive trade policy is “the obvious elephant in the room,” as the minister put it. But Hodgson signalled Canada and other countries are also trying to counter China’s overwhelming dominance of critical minerals, which are essential to everyday modern electronics, electric vehicles and defence weapons.
“For Canada and our allies, overreliance on concentrated foreign supply chains creates vulnerability,” Hodgson said. “Canada offers an alternative to that vulnerability for our allies.
“And Canada will never use our resources as a coercive tool.”
Billions for critical minerals
Hodgson announced billions of dollars in investment in critical mineral projects across the country Monday and is set to highlight more spending.
CBC News obtained advanced copies of Tuesday’s announcement.
Hodgson is expected to announce $3.6 billion in new investments in critical minerals mines and processing. Within that spending envelope is up to $165 million to “accelerate planning, development and processing capacity” across 22 domestic projects.
Following the fall federal budget, Hodgson is also launching a fund to get the valuable rocks and metals out of the ground and into processing facilities through a $1.5-billion First and Last Mile Fund.
The minister is expected to highlight the upcoming $2-billion Critical Minerals Sovereign Fund. The government is calling the fund “the first of its kind” because it allows Ottawa to make equity investments, issue loan guarantees and enter into offtake agreements with mines.
Offtake agreements allow the government to purchase a specified amount of product, providing mines with a guaranteed buyer and minimizing startup risks.
On Monday, Federal Energy and Natural Resources Minister Tim Hodgson announced 30 new partnerships and investments ‘across 10 allied countries, the EU and the UN,’ that he says will unlock $12.1 billion in critical minerals investments.
On Monday, Hodgson announced 30 partnerships and investments, saying they unlock $12.1 billion in mining project capital. It’s the second round of investment under the Carney government’s critical minerals production alliance, launched during Canada’s G7 presidency in the fall.
The alliance creates a buyer’s club among G7 countries — the group of industrialized economies that includes the U.S., U.K., Germany, Japan, France, Italy and Canada.
Canada a ‘mining and minerals powerhouse’: Hodgson
These billions of dollars in financing were the backdrop for the minister’s keynote on Monday, where he laid out the Carney government’s vision for the mining sector.
“This is a new era for Canadian mining — one where our resources once again sit at the nexus of our economic security, sovereignty and global influence,” he said
Hodgson called Canada “a mining and minerals powerhouse” at home and abroad. He added that critical minerals “underpin defence systems and technologies, advanced computing, telecommunications and clean technologies.”
He also said mining in the North reinforced today and in the future Canada’s “Arctic sovereignty and long-term strategic presence.”
Hodgson’s comments echo those of Conservative Leader Pierre Poilievre. Delivering a foreign policy speech Friday, Poilievre called for the creation of a new “strategic energy and minerals reserve” that would stockpile “in the event of a war, a crisis or a supply disruption.”
“Such reserves would strengthen Canada’s resilience and our negotiating position, giving us more unbreakable leverage while they remain sovereign assets that belong to us,” Poilievre said.
In October, Canada officially designated certain critical minerals as a national security priority under the Defence Production Act, a move that would allow the federal government to support the mining industry by guaranteeing it a buyer and a minimum price.
It also committed to stockpiling two minerals: graphite and scandium.