Name: Chinese Company Buys Canadian Rare Earth Metals
Uploaded: 2023-12-27T05:52:38.000Z
Description: China is getting more rare earth ore from Canada and it's coming from a mine that was once celebrated as a symbol of independence from China's supply chain.

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China is getting more rare earth ore from Canada and it's coming from a mine that was once celebrated as a symbol of independence from China's supply chain.

Representatives from Canada, the United States, Australia, and Norway announced the launching of the Nechalacho rare earth mine some two years ago.

At the time, they vowed to  "guarantee a responsibly sourced supply of Rare Earth Elements raw materials independent of China."

The high-grade ore was originally destined for supply chains in North America and Europe.

However, a new source of investment appears to have influenced the change. Earlier this month, Chinese rare earth miner Shenghe Resources made a deal with Vital Metal—the mine's owner.

Shenghe agreed to buy some of the mine's ore -- and invested four million U.S. dollars to by an about ten-percent share of Vital Metal.

The deal set of alarms among Canadian politicians.

Under the Canadian House of Commons -- the Standing Committee on Industry and Technology passed a motion. It urges Canada's Minister of Industry to start a national security review into the issue.

But because Vital Metal is an Australian company—and Australian government already approved the deal—the Canadian side may not have much sway over the deal.

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