Trudeau plans to purchase rare earth materials from Vital Metals Ltd., preventing the company from selling its production to a Chinese buyer.
Australian firm Vital sells rare earth stockpile to Saskatchewan Research Council for $3 million, preventing plans to sell to China’s Shenghe Resources Holding Co. for $2.4 million.
Canada acknowledges the rare earths mine as a strategic asset that contributes to its prosperity and critical mineral goals, according to Vital Metals.
Canadian government is implementing measures to prevent Chinese firms from further influencing Canada’s minerals sector, with stricter scrutiny of transactions between domestic companies and government-linked firms.
Canadian copper miner Solaris Resources dropped a Chinese financing deal due to national security concerns. Stockpiled material will go towards a rare earths processing facility in Saskatchewan, similar to previous purchases.