CANADA has proposed a potential equity-style investment of up to C$400m ($281.93m) in Teck Resources to help expand the company’s Trail Operations facility in British Columbia, said Reuters citing comments by the country’s natural resource ministry.
Natural Resource Minister Tim Hodgson said that as there is no tradable equity available to purchase, the funding would instead be tied to the Trail facility itself, with its value rising and falling in line with output.
The proposal also outlines a framework under which Ottawa would secure future offtake rights to strategic metals produced at the site, including germanium, antimony and gallium, which are used in infrared optics, semiconductors, defence systems and radar technology, said Reuters.
Hodgson said boosting Teck’s output would allow Canada to share critical minerals with allied nations. The government’s contribution would form part of a wider C$850m investment Teck is planning to sustain and expand processing capacity at Trail.
In a separate statement, Hodgson said backing a major miner such as Teck gives companies the confidence to commit to large Canadian critical minerals projects despite volatile global markets.
The move fits a broader push by Canada and its G7 partners to build stockpiles of strategic metals currently dominated by China. Earlier this year, Canada struck a similar offtake arrangement with Nouveau Monde Graphite to buy graphite at a fixed price for resale to allies.
G7 nations have spent the past two years devising measures to counter China’s control of rare earths, materials essential to smartphones, electric vehicles and advanced weaponry. China holds over 90% of global rare earth capacity and introduced export restrictions last year in response to US tariffs.
Teck, which agreed to merge with Anglo American last year, is North America’s largest germanium producer.
