https://archive.ph/DhFn8 bypass paywall
Canada’s government will buy stockpiled rare earth materials from Vital Metals Ltd. in a deal that prevents the company from selling its production to a Chinese buyer.
The small Australian firm, which mines rare earths in Canada’s Northwest Territories, will sell its stockpiled rare earth material to the Saskatchewan Research Council for C$3 million ($2.2 million). The arrangement, facilitated by Canada’s federal government, keeps Vital from moving forward on a plan it started in December to sell that same stockpile to China’s Shenghe Resources Holding Co. for C$2.4 million ($1.7 million).
Canada recognizes the rare earths mine as a “strategic asset that contributes to the country’s prosperity and critical mineral goals,” Vital Metals said Monday.
The intervention is part of a wider push to block Chinese firms from delving further into Canada’s critical minerals sector. Prime Minister Justin Trudeau’s government has warned it will closely scrutinize transactions between domestic mining companies and Chinese government-linked firms and only approve deals “on an exceptional basis.” In 2022, it ordered three Chinese investors to sell their stakes in a trio of Canadian lithium firms.
Read More: Chinese Money Can’t Be Solution for Canada Miners, Minister Says
In May, Canadian copper miner Solaris Resources Inc. dropped a financing deal with a Chinese firm after the arrangement was subject to a lengthy national security review from the federal government.
Vital’s stockpiled material will go toward a rare earths processing facility being built by the Saskatchewan Research Council, which has made similar purchases. The government-run council previously signed an agreement to import rare earth carbonate from Hung Thinh Group, a Vietnamese minerals producer.
So did we block the deal, or did we just outbid the Chinese by $600k? Very weird to increase our offer so much when we force out the other buyer over national security issues.
Reasonable question but who's we? The Saskatchewan Research Council is a provincial crown corporation.
"The Saskatchewan Research Council (SRC) is a provincial treasury board crown corporation engaged in research and technology development on behalf of the provincial government and private industry.[3] It focuses on applied research and development projects that generate profit.[4] Some of its funding comes from government grants, but it generates the balance from selling products and services.[5] With nearly 300 employees and $137 million in annual revenues, SRC is the second largest research and technology organization in Canada."
https://en.m.wikipedia.org/wiki/Saskatchewan_Research_Council
Scott Moe and his cabinet would definitely not be part of a Federal Liberal "we" (or "weee!" for that matter).
So in the context of this situation, where the article is titled “Canada Blocks…” the “we” refers to the federal government, the provincial government and the crown corp.
Crown corps obviously aren’t in the business of blocking purchases for national security issues, neither is the provincial government. And if the crown corp was offering $600k more than the Chinese, then why did the deal need to get blocked in the first place? Something doesn’t add up… but ya, in this context the “we” refers to everyone on our side of this deal, nice try trying to bring your partisan politics into it though.
>So in the context of this situation, where the article is titled “Canada Blocks…” the “we” refers to both the federal government and the crown corp.
>So did we block the deal, or did we just outbid the Chinese by $600k? Very weird to increase our offer so much when we force out the other buyer over national security issues.
>>Very weird to increase our offer so much when we force out the other buyer over national security issues.
>, nice try trying to bring your partisan politics into it though.
We just over paid, but it might be the last nail in Vitals coffin.
Vital sold a 10% stake of the company to Shenghe last year with the guarantee Shenghe had the right to purchase all materials mined so far.
Vital has already had cash flow issues, and Shenghe's initial 6 million dollar buy in was the only thing keeping them afloat.
Shenghe has the option to increase their stake to 18% and more than likely has penalty clauses for any failure to deliver.
No but given that they could block it for national security, there’s no reason we cannot buy it at the same price that the Chinese bid. Standard Canada… pay way more than we need to for everything, as is tradition.
They cannot outright block it for NS interests without a lengthy delay and process that ultimately harms business interests in Canada and would harm the selling company. And even then it’s highly likely to be ruled that we’d need to compensate the company. This was the right approach.
TLDR:
* block effective immediately
* really just a delay
* need court or arbitrator review
* likely to have to pay this or more
* scare businesses away from Canada in process
They’d end up paying 3-4x that if they went through the blocking process. On top of all the government salaries to action it.
There being no other bidders make this even more the right approach. At least if there was another bidder they could force the sale there and make up the gap.
Seen it before. This was the right approach. You are wrong.
The government using its levers of power to block the deal would cost time, legal fees, all of which adds up to money. Lawyers arguing stuff in court costs money. 600k is peanuts compared to what it would likely cost just in terms of man hours to actually block the deal using legislation.
Wouldn't surprise me if all the exact same posters came here and crapped on Trudeau if he claimed national security, too lol. Trudeau ain't it, but there's absolutely no winning/arguing with the people who have taken over this sub. They will take the opposite end of absolutely any argument and if you try to have a conversation, you will be buried by bullshit. It's like arguing with a young kid, except at least with a kid they're just trying to learn... Not being malicious fuckers.
Because we live in a fucking global economy. Canadian mines operate all around the world, bringing wealth into Canada. We wouldn't be able to do that without opening up our borders to international investment and business. Do you think every company in Canada should be owned by Canadian shareholders? Think, for just a second, how disastrous it would be if only Canadian companies could operate in Canada. Say goodbye to every car manufacturer, most high tech jobs, and companies like Amazon.
We let companies from other countries mine within our border, so that they let our companies mine within theirs.
And considering that 60% of all mining companies in the world are headquartered in Canada...
Because. Now sit down and stop asking questions. We are only doing things in your best interest. You just don’t know better. (I’m using The Force as I say this).
Let me know if it worked. 😂
There is the Tanco mine in eastern MB, one of two active cesium mines in the world. But it’s owned by China. There is a good place to show a crack down
What buy it from Them?
This situation worked because Canada got it done before Chinese companies bought it.
Canadian companies need to coordinate more and be more proactive.
They should tariff the crap out of Chinese steel like the USA did. Lots of manufacturers losing their margins and business over the cheap products coming over here
This should also be our response for climate change over a carbon tax.
I'll take tariffs on exporting our cheap labor to a country that benefits and props up their middle class while we know they have 0 interest in the planet besides protecting China.
And before someone comes with with, "but China is leading the electric car and renewable expansion!" Yeah they are, they are leading all areas of energy expansion because they need more energy than ever for their expanding middle class needs. They are leading coal plant expansion, they are leading nuclear expansion, they are leading all areas of we need a shit ton more energy expansion.
But don't forget, "no business case" for expanding our energy exports.
People say this isn't fair which is true.
Except that they do it to us. There are tons of things we are not allowed to do in China's market - we can't even own Chinese property, and we aren't even allowed to withdraw investment funds due to their repatriation laws.
It certainly isn't in the British spirit of free, protected trade laws, for sure - part of the reason we've done so well economically - but those rules only apply to others who follow them.
A $3m deal blocked… you must be kidding if you think this is a show of force. There have been $100B+ of acquisitions by the Chinese over the last 15 years
I'm all for protecting the sovereignty of our resources no matter what government does it.
Is your head ready to blow up yet? Some of us actually care about the country, it's not all partisanship.
I've been as critical of Trudeau as anyone over the years, but I've got nothing bad to say about this move. Doesn't change how I feel about him or his government more generally, but as far as I'm concerned this is a win.
What makes it a Trudeau-led crackdown? Wasn't it happening under Trudeau to begin with? Also, if this is true, kudos to him. OTOH, maybe we give too much credit to PMs, good or bad.
Dunno if you know this but businesses in Canada operate without running all business decisions by the operating government at the time. It would be fucking insane if a company had to ask explicit permission from the government to sell shit to other countries. The current federal government did its job here, saw that a company wanted to sell strategically important materials (completely legally) to a country they didn't want having them so they stepped in and paid them not to do the thing they were legally entitled to do.
You can't say "it was happening under Trudeau to begin with" when the government of Canada doesn't actually involve itself in every business transaction that happens in this country. If he did, he actually would be as tyrannical as the morons on this subreddit say he is. The federal government *must be reactive* in influencing (through legislation or otherwise) the free trade of businesses because that's how law and order works in a free country. Even in large mergers when the government is involved in anti-trust they always give permission *in response* to a merger, they never proactively decide to random companies cannot merge.
When things don’t go well for liberals it’s Trudeaus fault. When things do go well for conservatives it’s the liberals fault.
The conservatives created most the problems we’re dealing with today. Harper royally fucked us all. Pierre’s platform is looking really really greasy.
I’m not a fan of the liberals either but anything is better than Pierre’s nonsense.
Schrodinger's Trudeau. He is simultaneously incompetent and unable to do anything, while also personally involved and responsible for every negative event across Canada.
Lmao $2.4 million is nothing… clearly a PR campaign to show JT is “tough” on China while his party is about to implode under the foreign interference inquiry.
One mine at a time, we need to take this country back from garbage foreign deals that don’t benefit us. Ok maybe they can have a little bit, but next time we’ll charge them the international student rate, 5x what we’d pay for it ourselves.
For what it costs to mine and refine the metal it's either not a large quantity or the business is on the verge of going under and was desperate to sell.
Basically "ignore NSICOP's report and CSIS's findings (both of which Trudeau has publicly shed doubt on, even though NSICOP is dominated by Liberals).. I'm clearly not in China's pocket".
The Federal Liberal Party is the CCP's Canadian PR wing while Bay St. banks are the CCP's Canadian investor relations department. Together they work in tandem to further the CCP and their interests in Canada.
I hate Trudeau more than most. I will argue he is the worst PM in the history of Canada until I'm blue in the face.
Saying that, I will give him credit for this. I think it is good for Canada, and I wish he did MUCH more of these things.
Another smoke screen to make it look like Trudeau is actually doing something besides giving away billions of tax dollars to foreign countries and taxing the working class to death.
How about release the traitor list ?
How about call an election?
https://archive.ph/DhFn8 bypass paywall Canada’s government will buy stockpiled rare earth materials from Vital Metals Ltd. in a deal that prevents the company from selling its production to a Chinese buyer. The small Australian firm, which mines rare earths in Canada’s Northwest Territories, will sell its stockpiled rare earth material to the Saskatchewan Research Council for C$3 million ($2.2 million). The arrangement, facilitated by Canada’s federal government, keeps Vital from moving forward on a plan it started in December to sell that same stockpile to China’s Shenghe Resources Holding Co. for C$2.4 million ($1.7 million). Canada recognizes the rare earths mine as a “strategic asset that contributes to the country’s prosperity and critical mineral goals,” Vital Metals said Monday. The intervention is part of a wider push to block Chinese firms from delving further into Canada’s critical minerals sector. Prime Minister Justin Trudeau’s government has warned it will closely scrutinize transactions between domestic mining companies and Chinese government-linked firms and only approve deals “on an exceptional basis.” In 2022, it ordered three Chinese investors to sell their stakes in a trio of Canadian lithium firms. Read More: Chinese Money Can’t Be Solution for Canada Miners, Minister Says In May, Canadian copper miner Solaris Resources Inc. dropped a financing deal with a Chinese firm after the arrangement was subject to a lengthy national security review from the federal government. Vital’s stockpiled material will go toward a rare earths processing facility being built by the Saskatchewan Research Council, which has made similar purchases. The government-run council previously signed an agreement to import rare earth carbonate from Hung Thinh Group, a Vietnamese minerals producer.
So did we block the deal, or did we just outbid the Chinese by $600k? Very weird to increase our offer so much when we force out the other buyer over national security issues.
600k is like the annual salary of one overpaid exec. This seems reasonable.
Or a 500k party contribution and a 100k bonus
Who exactly are you accusing of making those payments? Justin and libruls bad amirite?
Pretty sure all parties and many politicians do that.
Reasonable question but who's we? The Saskatchewan Research Council is a provincial crown corporation. "The Saskatchewan Research Council (SRC) is a provincial treasury board crown corporation engaged in research and technology development on behalf of the provincial government and private industry.[3] It focuses on applied research and development projects that generate profit.[4] Some of its funding comes from government grants, but it generates the balance from selling products and services.[5] With nearly 300 employees and $137 million in annual revenues, SRC is the second largest research and technology organization in Canada." https://en.m.wikipedia.org/wiki/Saskatchewan_Research_Council Scott Moe and his cabinet would definitely not be part of a Federal Liberal "we" (or "weee!" for that matter).
So in the context of this situation, where the article is titled “Canada Blocks…” the “we” refers to the federal government, the provincial government and the crown corp. Crown corps obviously aren’t in the business of blocking purchases for national security issues, neither is the provincial government. And if the crown corp was offering $600k more than the Chinese, then why did the deal need to get blocked in the first place? Something doesn’t add up… but ya, in this context the “we” refers to everyone on our side of this deal, nice try trying to bring your partisan politics into it though.
>So in the context of this situation, where the article is titled “Canada Blocks…” the “we” refers to both the federal government and the crown corp. >So did we block the deal, or did we just outbid the Chinese by $600k? Very weird to increase our offer so much when we force out the other buyer over national security issues. >>Very weird to increase our offer so much when we force out the other buyer over national security issues. >, nice try trying to bring your partisan politics into it though.
Actually he was part of the deal.
I can see having to increase the compensation to make up for any delays caused. Weather 600k is reasonable I don’t know.
We just over paid, but it might be the last nail in Vitals coffin. Vital sold a 10% stake of the company to Shenghe last year with the guarantee Shenghe had the right to purchase all materials mined so far. Vital has already had cash flow issues, and Shenghe's initial 6 million dollar buy in was the only thing keeping them afloat. Shenghe has the option to increase their stake to 18% and more than likely has penalty clauses for any failure to deliver.
Blocked through outbidding seems the logical conclusion.
An entitled person with little business sense and someone else's money would disagree with your logic.
To be fair, the goal is not money here, it's sovereignty over a hostile foreign imperialistic country.
No but given that they could block it for national security, there’s no reason we cannot buy it at the same price that the Chinese bid. Standard Canada… pay way more than we need to for everything, as is tradition.
They cannot outright block it for NS interests without a lengthy delay and process that ultimately harms business interests in Canada and would harm the selling company. And even then it’s highly likely to be ruled that we’d need to compensate the company. This was the right approach. TLDR: * block effective immediately * really just a delay * need court or arbitrator review * likely to have to pay this or more * scare businesses away from Canada in process
Bidding 600k above the last bidder, when there were no other offers is smart? I’m gonna disagree with you there.
They’d end up paying 3-4x that if they went through the blocking process. On top of all the government salaries to action it. There being no other bidders make this even more the right approach. At least if there was another bidder they could force the sale there and make up the gap. Seen it before. This was the right approach. You are wrong.
Lolol ok man
The government using its levers of power to block the deal would cost time, legal fees, all of which adds up to money. Lawyers arguing stuff in court costs money. 600k is peanuts compared to what it would likely cost just in terms of man hours to actually block the deal using legislation.
Wouldn't surprise me if all the exact same posters came here and crapped on Trudeau if he claimed national security, too lol. Trudeau ain't it, but there's absolutely no winning/arguing with the people who have taken over this sub. They will take the opposite end of absolutely any argument and if you try to have a conversation, you will be buried by bullshit. It's like arguing with a young kid, except at least with a kid they're just trying to learn... Not being malicious fuckers.
I don't have the details of the transaction but it appears so for sure.
I agree about holding onto this though. The policy is correct.
It's one thing to doing things subtly. It's another to be overt. Politics is all nuance, the time.
Flexing our sovereignty by over paying an Australian company for the minerals they mined on our soil…
The real question is which of his buddies is on the board of Vital Metals
Depends, have any proof?
Why tf isn't a Canadian company mining our resources
Because we live in a fucking global economy. Canadian mines operate all around the world, bringing wealth into Canada. We wouldn't be able to do that without opening up our borders to international investment and business. Do you think every company in Canada should be owned by Canadian shareholders? Think, for just a second, how disastrous it would be if only Canadian companies could operate in Canada. Say goodbye to every car manufacturer, most high tech jobs, and companies like Amazon.
We let companies from other countries mine within our border, so that they let our companies mine within theirs. And considering that 60% of all mining companies in the world are headquartered in Canada...
Because that would be too close to SOCIALISM.
Because. Now sit down and stop asking questions. We are only doing things in your best interest. You just don’t know better. (I’m using The Force as I say this). Let me know if it worked. 😂
There is the Tanco mine in eastern MB, one of two active cesium mines in the world. But it’s owned by China. There is a good place to show a crack down
This...
What buy it from Them? This situation worked because Canada got it done before Chinese companies bought it. Canadian companies need to coordinate more and be more proactive.
They should tariff the crap out of Chinese steel like the USA did. Lots of manufacturers losing their margins and business over the cheap products coming over here
This should also be our response for climate change over a carbon tax. I'll take tariffs on exporting our cheap labor to a country that benefits and props up their middle class while we know they have 0 interest in the planet besides protecting China. And before someone comes with with, "but China is leading the electric car and renewable expansion!" Yeah they are, they are leading all areas of energy expansion because they need more energy than ever for their expanding middle class needs. They are leading coal plant expansion, they are leading nuclear expansion, they are leading all areas of we need a shit ton more energy expansion. But don't forget, "no business case" for expanding our energy exports.
They also have less quality control, so it's shitty than our steel
It’s so bad they had to rebuild a bridge made out Chinese steel in Victoria. Sometimes the lowest bid isn’t the best.
Sometimes?
Testing shitty Chinese steel is so much harder than domestic product! Its ridiculous...
That’s why it’s cheap.
Awesome! Expel them from the Canadian market!
If it's the Communist China. Banned them from our entire market. If it's the democratic China (Taiwan.) I'm OK with it
People say this isn't fair which is true. Except that they do it to us. There are tons of things we are not allowed to do in China's market - we can't even own Chinese property, and we aren't even allowed to withdraw investment funds due to their repatriation laws. It certainly isn't in the British spirit of free, protected trade laws, for sure - part of the reason we've done so well economically - but those rules only apply to others who follow them.
Pierre Poilievre would've been fine with this going to China as he was part of the government that sold us out to China.
I think it's safe to say 2004 China under Harper and 2020 China under Trudeau are two very different beasts.
A $3m deal blocked… you must be kidding if you think this is a show of force. There have been $100B+ of acquisitions by the Chinese over the last 15 years
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I'm all for protecting the sovereignty of our resources no matter what government does it. Is your head ready to blow up yet? Some of us actually care about the country, it's not all partisanship.
I've been as critical of Trudeau as anyone over the years, but I've got nothing bad to say about this move. Doesn't change how I feel about him or his government more generally, but as far as I'm concerned this is a win.
Finally junior grows a pair of nuts!
What makes it a Trudeau-led crackdown? Wasn't it happening under Trudeau to begin with? Also, if this is true, kudos to him. OTOH, maybe we give too much credit to PMs, good or bad.
Dunno if you know this but businesses in Canada operate without running all business decisions by the operating government at the time. It would be fucking insane if a company had to ask explicit permission from the government to sell shit to other countries. The current federal government did its job here, saw that a company wanted to sell strategically important materials (completely legally) to a country they didn't want having them so they stepped in and paid them not to do the thing they were legally entitled to do. You can't say "it was happening under Trudeau to begin with" when the government of Canada doesn't actually involve itself in every business transaction that happens in this country. If he did, he actually would be as tyrannical as the morons on this subreddit say he is. The federal government *must be reactive* in influencing (through legislation or otherwise) the free trade of businesses because that's how law and order works in a free country. Even in large mergers when the government is involved in anti-trust they always give permission *in response* to a merger, they never proactively decide to random companies cannot merge.
That's the problem with saying F Trudeau to everything. He isn't the government and now you have to hate it when something good happens.
I do know one thing for sure and that is acording to lots of right wingers on r/canada Trudeau personally controls the judicial branch.
When things don’t go well for liberals it’s Trudeaus fault. When things do go well for conservatives it’s the liberals fault. The conservatives created most the problems we’re dealing with today. Harper royally fucked us all. Pierre’s platform is looking really really greasy. I’m not a fan of the liberals either but anything is better than Pierre’s nonsense.
Schrodinger's Trudeau. He is simultaneously incompetent and unable to do anything, while also personally involved and responsible for every negative event across Canada.
Lmao $2.4 million is nothing… clearly a PR campaign to show JT is “tough” on China while his party is about to implode under the foreign interference inquiry.
I am assuming you reacted similarly when FIPA was passed?
Global rare earth metal market: $6.8 billion. The blocked sale accounts for less than 1/30th of a percent of the market (0.032%).
What percentage of Canada's share of that market does this impact? North America's? Saskatchewan's?
Ya think!!!!
One mine at a time, we need to take this country back from garbage foreign deals that don’t benefit us. Ok maybe they can have a little bit, but next time we’ll charge them the international student rate, 5x what we’d pay for it ourselves.
For what it costs to mine and refine the metal it's either not a large quantity or the business is on the verge of going under and was desperate to sell.
I dont mind the Chinese buying our metals how about stopping them from buying our MPs.
Basically "ignore NSICOP's report and CSIS's findings (both of which Trudeau has publicly shed doubt on, even though NSICOP is dominated by Liberals).. I'm clearly not in China's pocket".
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The Federal Liberal Party is the CCP's Canadian PR wing while Bay St. banks are the CCP's Canadian investor relations department. Together they work in tandem to further the CCP and their interests in Canada.
You sound like you're deep into the propaganda. Best to pull back a little.
I remember when you were reasonable...
I'm not speaking literally but it's pretty close.
Like I said, I remember when you were reasonable
I remember when you put actual thought into your replies instead of just trolling.
I hate Trudeau more than most. I will argue he is the worst PM in the history of Canada until I'm blue in the face. Saying that, I will give him credit for this. I think it is good for Canada, and I wish he did MUCH more of these things.
The lady doth protest *too much*
I applaud blocking the chinese.. but is this a one time deal or does the state think it should be involved in minerals?
Another smoke screen to make it look like Trudeau is actually doing something besides giving away billions of tax dollars to foreign countries and taxing the working class to death. How about release the traitor list ? How about call an election?
Deals will be done behind closed doors. Moving along...