MNI: Canada Curbing US From Handling Critical Minerals And Oil

Canada will curb U.S. access to its natural resources by processing critical minerals at home and supporting construction of a domestic east-west oil pipeline, the new energy minister said Friday, saying those moves are needed after Donald Trump dented trust between two of the world’s largest trade partners.

“The President likes to talk about it like a card game. So, if we’re going to sit across the table from him or anyone else, we need to hold Canada’s best cards. That means being able to sell our products to the world,” Tim Hodgson said in his first ministerial speech at the Calgary Chamber of Commerce.

The comments reframe U.S. calls for Canada to become a supplier of critical minerals being stockpiled by China, even as Trump ripped up a free trade deal he signed with Canada in his first term to impose 25% tariffs. 

"Canada also has what the world needs here — lithium, copper, nickel, cobalt, manganese, and of course, one of the world’s largest supplies of high-quality uranium," Hodgson said. "But we need to do more than dig. We need to process and refine here at home, and export to the world, not just the U.S."

Hodgson also raised the idea the U.S. could threaten Canada's energy security, with a major oil pipeline from the west to Ontario running partly south of the border. "Eastern Canada needs better supply security. We need to reduce our exposure to foreign energy, in a world where we may not be able to rely on trade agreements with our southern neighbours," he said. (See: MNI INTERVIEW: Carney Quebec Gain Boosts Pipeline Odds- Surkes)

GETTING ENERGY TO TIDEWATER

The federal government will fast-track approvals of big projects in two years instead of the previous timeline of five or more, he said, without committing to any specific proposal. Hodgson is viewed as a close ally of Prime Minister Mark Carney, with both men sharing a Goldman Sachs background and a pro-business stance marking a shift from the previous Justin Trudeau administration.

"We need infrastructure that gets our energy to tidewater and to trusted allies — diversifying beyond the U.S. We will invest in carbon capture, methane reduction, and other technologies to ensure Canadian oil and gas is not only produced responsibly, but is the most competitive in the world," Hodgson said. 

The Minister also called on the public and private sectors to get the “Pathways Project done.” Launched in 2021 Alliance Pathways - a group of Canada's six largest oil sands producers - seeks net-zero greenhouse gas emissions by 2050. The first phase requires an estimated CAD16.5 billion.

Investing in hydrogen, geothermal, biofuels, renewables and nuclear is promising, Hodgson said. He also highlighted plans to work with provinces on a Pan Canadian electricity grid.

The minister said one of his first calls after his appointment was to Alberta's resources minister Minister Brian Jean. Alberta's premier has threatened a referendum on separating from Canada next year if the government doesn't meet her demands to boost the energy industry.