Canada Moves to Secure Defense Mineral Supplies, Challenges China's Dominance
China dominates the global market for low-purity gallium, supplying around 98%. Meanwhile, the Canadian government has invested $8.2 million in Northcliff Resources to establish a tungsten mine in Sisson-Brook, New Brunswick. This move aims to secure critical mineral supplies for the defense sector.
Gallium, a soft metal with a low melting point, is vital for semiconductors, radars, and military communication systems. However, its primary production is heavily reliant on China. Neo Performance Materials' plant in Peterborough, Ontario, is the sole North American gallium producer, recycling the metal to meet demand.
Tungsten, a heavy, hard metal with the highest melting point among metals, is used in ammunition and military vehicle armor. China, Vietnam, Russia, and North Korea are the main tungsten suppliers. Canada's investment in Northcliff Resources aims to reduce this dependence and secure a domestic source of tungsten.
Canada is also exploring other critical minerals. While there's no specific plan for palladium and yttrium production, companies like Azincourt Energy are involved in the exploration and development of critical minerals, focusing on uranium and lithium. Niobium, a light, ductile metal with excellent corrosion resistance, used in jet engine alloys and hypersonic weapons, is mainly supplied by Brazil and Canada. Taseko Mines owns the world's largest undeveloped niobium deposit in northern British Columbia, with only one mine currently exploiting it in Saint-Honoré, Saguenay. Rio Tinto is also evaluating the possibility of extracting gallium in Lac-Saint-Jean, with potential annual production of up to 3.5 metric tons.
Canada's investment in Northcliff Resources and exploration efforts by companies like Azincourt Energy signal a commitment to securing critical mineral supplies for the defense sector. While gallium production remains heavily reliant on China, domestic exploration and recycling efforts aim to reduce this dependence. The development of tungsten and niobium resources in Canada also seeks to diversify global supply chains for these crucial metals.
