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Prime Minister Trudeau and President Biden Joint Statement
Originally posted on pm.gc.ca
Canada and the United States celebrate our progress under the Roadmap for a Renewed U.S.-Canada Partnership over the past two years and reaffirm our historic alliance, steadfast friendship, and commitment to overcome the daunting challenges of today and realize the full potential of the relationship in the future. Our enduring partnership is based on a mutual commitment to shared security, shared prosperity, and shared democratic values, including the importance of fighting climate change and an abiding respect for human rights and the rule of law. As the closest of friends and allies, we remain committed to making life better for people on both sides of our shared border and to building a more free, equitable, secure, and prosperous world.
To that end, Canada and the United States will work together to:
1.Catalyze Clean Energy and Create Good Jobs: Deepening economic integration, accelerating the deployment of clean technologies, and workforce development are essential to building a more sustainable and globally competitive economy for American and Canadian workers, including through continued implementation of the U.S.-Mexico-Canada Agreement.
Prime Minister Trudeau and President Biden highlighted Canada’s Emissions Reduction Plan and the U.S. Inflation Reduction Act as foundational elements to leading the clean energy future through robust clean energy industrial policies that help mobilize technological innovation, bolster resilient supply chains, strengthen our respective economies and expand the middle class, while keeping our environment healthy for future generations. Canada is moving forward with an enhanced plan to support a clean economy future, including with a new investment tax credit for clean technology manufacturing in addition to tax measures that support clean hydrogen and clean technology adoption. As the implementation of these plans proceed, the United States and Canada will work together toward an integrated North American approach that benefits U.S. and Canadian workers, suppliers, and products.
Canada and the United States launched a one-year Energy Transformation Task Force chaired by the U.S. Special Presidential Coordinator for Global Infrastructure and Canada’s Deputy Prime Minister to work across the spectrum of the clean economy. The task force will accelerate cooperation on critical clean energy opportunities and supply chains, including but not limited to, securing and strengthening renewable energy and electric vehicle supply chains, critical minerals and rare earths, grid integration and resilience, advanced and conventional nuclear energy and other areas that advance our collective energy security, and to avoid and reduce disruptions to our integrated and mutually supportive supply chains.
Canada and the United States have built the world’s largest market-based energy trading relationship, which provides a firm foundation as we strive to reach net-zero greenhouse gas emissions. Both countries will work to harmonize charging standards and develop cross-border alternative fuel corridors, drawing on USD $7.5 billion in the U.S. Bipartisan Infrastructure Law and CAD $1.2 billion in Canadian funding to build a network of electric vehicle fast chargers and community charging options on both sides of the border.
Building on Canadian and U.S. commitments to achieve net-zero power grids by 2035 and to accelerate efforts to phase down new, unabated coal power generation facilities, both countries intend to propose regulations before this fall that will reduce greenhouse gas emissions from their respective sectors. The United States and Canada also intend to work with other major energy importers and exporters to develop an internationally aligned approach to measurement, monitoring, reporting, and verification for lifecycle methane and CO2 emissions across the fossil energy value chain.
Canada and the United States will work together to address the climate impact of goods, promote North American trade of low-emissions goods, including the promotion of common approaches for trade in low emissions goods, including green steel and aluminum.
On civil nuclear engagement, Canada will join the Foundational Infrastructure for Responsible Use of Small Modular Reactor Technology (FIRST) program, providing funding and in-kind support. Canada and the United States will also coordinate efforts to develop secure and reliable North American nuclear fuel supply chains and build broader partnerships with longstanding allies and partners, both of which will help to ensure access to low enriched uranium, including High-Assay Low Enriched Uranium.
2.Strengthen Resilience of Critical Mineral and Semiconductor Supply Chains: Canada and the United States will work together to create a strong, environmentally responsible, and resilient North American critical minerals supply chain. We are committed to identifying, securing, and developing critical minerals extraction, processing, manufacturing, and recycling opportunities in both countries to diversify supply chains essential to clean energy, electric vehicles, semiconductors, aerospace, and defense, among other sectors, that meet strong environmental, sustainability, worker, health and safety, Indigenous and Tribal consultation and partnership, and community engagement standards.
Canada and the United States are taking a significant step toward the creation of reliable and sustainable critical mineral supply chains that are vital to our economic and national security and demonstrate the commitment of the United States to support Canadian companies in the energy economy.
Last year, the United States announced USD $250 million of Defense Production Act Title III funding for U.S. and Canadian companies to mine and process critical minerals for electric vehicle and stationary storage batteries, with awards to U.S. and Canadian companies to be announced this spring.
The Canadian Critical Minerals Infrastructure Fund will make CAD $1.5 billion available to support clean energy and transportation infrastructure projects necessary to accelerate critical minerals production and an additional CAD $1.5 billion through the Strategic Innovation Fund to support advanced manufacturing, processing, and recycling.
With the passage of the CHIPS and Science Act, Canada and the United States will facilitate investment to promote secure and resilient semiconductor supply chains, creating jobs in both countries. Both countries will advance a cross-border packaging corridor, beginning with Canada and IBM providing a significant investment to develop new and expanded packaging and testing capabilities at its Bromont facility as part of a Memorandum of Understanding
To strengthen advanced packaging for semiconductors and printed circuit boards in North America, the United States announced an additional USD $50 million in Defense Production Act funding for U.S. and Canadian companies to advance packaging for semiconductors and printed circuit boards, with Canada to provide up to CAD $250 million for semiconductor projects from the Strategic Innovation Fund in the near term. We are also establishing an Advanced Technology Data and Security Dialogue and intend to deepen our collaboration on shared priorities in quantum information science and technology.
3.Protecting Our Shared Waters and the Arctic: Canada and the United States committed to fight climate change and build net-zero economies, conserve biodiversity, and protect fragile ecosystems, including in transboundary waters and the Arctic.
Recognizing the vulnerability of the unique, shared Arctic ecosystem, Canada and the United States committed to advancing conservation, environmental protection and resilience in partnership and consultation with the Indigenous peoples and populations, and furthering work under agreements and treaties established around the movement of shared species.
Canada and the United States further committed to initiating dialogue with other Arctic Nations and Indigenous peoples to advance conservation and sustainable economic development in the Central Arctic Ocean, and recognized the need to conserve and protect Arctic ecosystems and reduce localized emissions of carbon dioxide, methane, and black carbon in the Arctic to complement our global mitigation efforts. The two countries will collaborate to prepare for, prevent, and respond to oil spills and other environmental disasters in the Arctic.
Canada and the United States announced a renewed commitment to preserving and restoring our shared national treasure, the Great Lakes. The United States welcomed Canada’s announcement of a new, historic investment of CAD $420 million over the next decade as part of this shared responsibility to protect and restore the world’s largest freshwater ecosystem. The U.S. Bipartisan Infrastructure Law provided the largest single investment in the Great Lakes in history, with USD $1 billion for cleanup and restoration activities.
Canada and the United States will intensify their work over the coming months toward agreement on a modernized treaty regime that will support a healthy and prosperous Columbia River Basin. We will focus on flood risk management, power generation, and environmental benefits that are shared equitably by both countries and the Indigenous peoples and Tribal nations, communities, and stakeholders in this watershed. The Columbia River is a vital shared resource that underpins many lives and industries on both sides of the border and the watershed requires our attention and prompt coordination.
Canada and the United States also intend to reach an agreement in principle by this summer to reduce and mitigate the impacts of water pollution in the Elk-Kootenay watershed, in partnership with Tribal Nations and Indigenous Peoples, and in order to protect the people and species that depend on this vital river system.
4.Advancing Diversity and Inclusion: Recognizing the central importance of inclusion and equal opportunity to our democracies, Canada and the United States will continue to work toward fair and inclusive policies that benefit all citizens, regardless of sex, gender, or sexual orientation; race, ethnicity, or religion; age; disability; or geography.
Building on previous bilateral and North American commitments, the Leaders reaffirmed their shared determination to promote equality and ensuring everyone lives free from discrimination, harassment, or violence. Canada and the United States remain committed to ensuring the full, equal, and meaningful participation of marginalized communities in our societies.
The Leaders reaffirmed their shared commitment to promoting gender equality and empowering women and girls as essential for achieving a more peaceful, inclusive, and prosperous world. They underscored the importance of continued cooperation on the advancement of gender equity, including with respect to child benefits, early learning and childcare, pay equity, and women’s entrepreneurship, among other issues.
5.Bolster Global Alliances: Canada and the United States are committed to the security of our treaty allies, including through the North Atlantic Treaty Organization (NATO), and to supporting our partners around the world. We are even stronger through our collaboration at and with the United Nations and other international organizations, alliances, and groups, including the G7, G20, the Five Eyes, and the Organization of American States.
We condemn Russia for its illegal, unjustifiable, and unprovoked war against Ukraine, and will continue imposing economic costs on Russia, while maintaining our unwavering support for Ukraine for as long as it takes.
Canada and the United States acknowledge the serious long-term challenge to the international order posed by the People’s Republic of China, including disruptive actions such as economic coercion, non-market policies and practices, and human rights abuses. While we will cooperate with China in areas of mutual interest, such as on climate change, we remain committed to ensuring our ability to compete effectively with China on a level playing field. Canada and the United States will also continue to cooperate on countering foreign interference in our societies in a manner that reflects our shared democratic values.
We emphasize that our basic positions on Taiwan remain unchanged, and reiterate the importance of maintaining peace and stability across the Taiwan Strait as an indispensable element of security and prosperity in the international community. We encourage the peaceful resolution of cross-Strait issues.
The Prime Minister and the President reaffirmed their commitment to the Americas Partnership for Economic Prosperity, and welcomed the first U.S.-Canada Indo-Pacific Strategic Dialogue on March 10 and will cooperate to promote a free, open, prosperous, secure, and resilient Indo-Pacific.
Canada and the United States are working together to support countries around the world as they develop their economies to deliver inclusive and resilient growth, while fostering sustainable pathways to net zero emissions. Through the G7 Partnership for Global Infrastructure and Investment, we are collaborating to unlock public and private capital for quality infrastructure to create lasting positive impacts for low- and middle-income countries and support sustainable development, as well as benefit partners’ economic security and global supply chains. We are also advancing an ambitious agenda to evolve the multilateral development banks, starting with the World Bank, to better respond to global challenges, while also enhancing their work on poverty alleviation and meeting the Sustainable Development Goals.
Canada and the United States also remain concerned about deteriorating security in Haiti, committed to increasing international support for the Haitian people, including through security and humanitarian assistance, enhanced support for the Haitian National Police, and by holding accountable those who undermine Haiti’s stability.
6.Invest in Our Collective Defense and Security: Our highest priority is to protect our citizens and our sovereign territory. We will invest in the modernization of the North American Aerospace Defense Command (NORAD), including specifically:
As part of a CAD $6.96 billion investment in surveillance system modernization, procuring and fielding two next generation Over-the-Horizon Radar (OTHR) systems covering the Arctic and Polar approaches, the first by 2028 to enhance early warning and domain awareness of North American approaches;
CAD $7.3 billion in investments in the northern forward operating locations to support 5th generation aircraft and mobility/refueling assets, which capabilities should be in place prior to the arrival of the F-35 aircraft, including airfield improvements to accommodate aircraft personnel, fuel, and munitions, to ensure NORAD’s ability to deter and defend against emerging threats to our air and sea space and compete with China and Russia for years to come.
The Prime Minister confirmed that the funding for these investments would come from Canada’s planned investments in defense infrastructure. These Canadian and U.S. efforts will bolster NORAD’s ability to detect threats earlier and more precisely and respond effectively. In the face of global threats, the Leaders acknowledged the importance of investment in modern, ready, and capable forces in line with their commitments to NATO under the 2014 Wales Summit Defence Investment Pledge. Such investments enable effective contributions to NATO, United Nations, and other global missions.
The Leaders recognized the need to work in close collaboration to combat all criminal activity in our combined jurisdiction. The Cross-Border Crime Forum is key to the safety of both countries, by facilitating cooperation to reduce violent extremism, child sex exploitation, cross-border smuggling, and firearms violence on both sides of the border.
Cyber threats can impact both Canadians and Americans, particularly when directed at cross-border systems on which we all rely.
To better protect against these threats, we will deepen our cooperation on driving improvements to the cybersecurity and resiliency of our critical infrastructure.
We will focus on two key sectors – pipelines and electricity – due to their criticality to our economies and their cross border nature. Further, we reiterate that in each of our countries, should an adversary choose to target critical infrastructure systems, we will both respond.
The opioid overdose crisis is having devastating health and economic consequences in our societies. We are united in our resolve to disrupt the illicit production and distribution of synthetic opioids like fentanyl and its precursor chemicals while augmenting our public health response.
Canada and the United States will expand multi-agency cooperation to improve intelligence sharing on cross-border fentanyl and precursor chemical trafficking to support interdictions and investigations, as part of our effort to bolster cooperation under U.S.-Canada Opioids Action Plan.
Canada will join the United States as it builds a global coalition against synthetic drugs, underscoring Canadian and U.S. leadership in response to this shared security and public health challenge. Canada and the United States reaffirm their commitment from the tenth North American Leaders’ Summit to work with Mexico trilaterally to defeat the synthetic opioid crisis.
7.Manage Migration Collaboratively: The Los Angeles Declaration on Migration and Protection enshrines our belief that irregular migration requires a regional approach centered on expanding legal pathways and humane border management and recognizes that we must address the underlying economic and security drivers of migration. Canada and the United States remain committed partners in advancing the principles of the Declaration.
As part of its commitment to these principles, Canada will welcome an additional 15,000 migrants on a humanitarian basis from the Western Hemisphere over the course of the year to continue expanding safe, regular pathways offered throughout the hemisphere as an alternative to irregular migration, with a path to economic opportunities
Additionally, Canadian and U.S. officials are now poised to implement an agreement to apply the terms of the Safe Third Country Agreement to asylum seekers who cross between ports of entry, which we anticipate will deter irregular migration at our shared border. We will remain in close coordination as we work to implement this new agreement.
Eager to cut China dependence, EU eyes processing 40 per cent of its strategic raw materials by 2030
Originally posted on scmp.com
The European Union wants to process 40 per cent of the strategic raw materials it uses by 2030, as it looks to slash its dependence on China for the minerals that will power industries of the future.
It also aims to ensure it will not rely on third countries for more than 70 per cent of any of 30 critical minerals, according to a leaked proposal to be unveiled next Tuesday and seen by the South China Morning Post.
The moves come amid a surge in anxiety about Europe’s dependence on China and other autocratic states for inputs that are essential to achieving its environmental and technological transition goals.
The lists of minerals include cobalt and lithium used in advanced batteries, scandium and vanadium used in aerospace equipment and weaponry, and gallium and germanium that are used to make semiconductors.
Also on the lists are the light and heavy rare earth elements that are dominated by China, which either mines or processes the vast majority of the global supply.
Of the rare earth minerals used in Europe, 98 per cent come from China, according to Brussels’ own statistics. These are essential to ramping up solar and wind power facilities and charging up electric vehicles and other smart devices that the EU sees as critical to its industrial development.
As well as having abundant domestic supplies for some materials, Beijing has become a dominant exporter of processed minerals, hoovering up mines that churn out critical metals like lithium and cobalt across Africa, Australia and Latin America.
The coronavirus pandemic and Russia’s invasion of Ukraine have stoked suspicion across the West that such dependencies can be weaponised.
In Brussels and beyond, the debate has turned to how Europe can rival China for such concessions.
This has given fresh impetus to free-trade deals with resource-rich countries such as Australia, Chile and Thailand, and to discussions about “strategic partnerships” with countries like South Africa and the Democratic Republic of Congo, home to some of the largest mineral reserves on earth.
“For some raw materials, the [EU] is almost fully dependent on a single foreign supplier,” according to a draft of the Critical Raw Materials Act.
“Such dependencies can create a high risk of supply disruption, as was the case when the Chinese supply of magnesium was cut off in 2021, which at that moment represented around 95 per cent of the union’s supply of magnesium,” it continued, referring to a metal commonly used in the automotive supply chain.
Despite consuming 30 per cent of all metals and minerals mined globally, the EU produces just 3 per cent itself.
By cutting red tape, speeding up licensing and extending funds, it hopes that by 2030 it can mine 10 per cent of its own supplies within its own borders. A further 40 per cent would come from ores and minerals sourced around the world but processed in Europe, while an extra 15 per cent would come from recycled metals.
It will establish a central purchasing agency that would gauge needs among its member states and industries, before buying in bulk and distributing accordingly. The EU also aims to stockpile critical materials in case of future emergencies.
The bloc also hopes to combine resources with allies.
European Commission President Ursula von der Leyen is expected to strike a limited trade deal with US President Joe Biden in Washington on Friday that would give EU firms access to Biden’s flagship green bonanza, the Inflation Reduction Act (IRA).
She is also hoping to advance “a critical raw materials club” that would entail transatlantic cooperation to help shore up supplies.
“We see today that, for example, China produces 98 per cent of Europe’s supplies of rare earths. And Europe needs to de-risk this dependency. This is of course immediately the reason why Europe seeks to work together with trusted partners,” von der Leyen said on a visit to Ottawa this week.
She noted that Canada was the only northern hemisphere country “with all the raw materials needed to produce lithium-ion batteries”.
Noah Barkin, managing editor at think tank Rhodium Group’s China practice, said the EU-US deal would “kill two birds with one stone”.
“It alleviates EU concerns about the IRA by broadening the definition of local content and it sends a broader signal about transatlantic cooperation on green technology supply chains,” Barkin said.
“It is not a miracle solution for addressing deep dependencies on China for critical raw materials. But if this agreement can be extended to other like-minded countries, it maps out a path for collective action in reducing those dependencies over time,” he added.
However, it could be years before the EU’s act becomes law.
After the commission makes its proposal next week, the European Council and Parliament will come up with their own versions, after which they will try to land on a negotiated text that could take years to reach.
It should, in theory, be well received in both chambers. Governments and lawmakers in recent months have been publicly fretting about how to wean Europe off Chinese resources and technology.
Meanwhile, Chinese tech companies have suffered a spate of setbacks over the past fortnight.
Short video app TikTok was banned from use on work devices at the EU institutions in February. On Wednesday, it was labelled a “security threat” in the Czech Republic.
“The amount of data being collected and handled, combined with the legal environment in China and the growing number of users in the Czech Republic, leaves us with no choice but to label TikTok a security threat,” said Lukáš Kintr, director of the country’s cybersecurity office.
In Germany, media reports said the government was on the verge of banning Huawei Technologies and ZTE equipment from certain parts of the country’s 5G network.
The Dutch government announced this week it would block shipments of equipment used for making microchips to China, freezing Beijing out of some of the high-end photolithography machines made by market leader ASML.
The need to rival Beijing for securing resources has also led officials to adopt more muscular language when discussing the EU’s much-maligned infrastructure drive, Global Gateway.
“It’s geopolitics on steroids, with a vengeance,” said a senior EU official briefing journalists following the announcement of 87 initial projects in Brussels this week.
Brussels had been approached by governments in countries for which Chinese companies had built roads and highways that were “swept away by the rain”, the official said, describing a gap in the market that the EU hoped to fill.
“Chinese companies build ‘fast and solid’, but that is not sustainable in the medium and long term and it puts in danger the financial sustainability of countries that now come to us,” the official added.
Surging molybdenum price adds weight to new year rally for copper producers
Originally Posted on Mining.com
Euhedral, hexagonal molybdenite on quartz, from Molly Hill mine, Quebec, Canada. The large crystal is 15mm across. Image: John Chapman, Creative Commons
Copper prices started the new year with a bang – touching fresh six-month highs on Tuesday. Copper for delivery in March touched $4.0795 per pound or just shy of $9,000 a tonne, bringing gains for the first week of 2023 to over 8%.
Measured from last year’s summer lows the bellwether metal is up nearly 30% on optimism over a post-covid recovery in China, which consumes more than half the world’s copper, and long-term demand growth spurred by the energy transition.
Molybdenum is often produced as a byproduct of porphyry copper mines with global production worldwide of 300,000 tonnes primarily destined for the steel industry.
BMO says with demand conditions still relatively muted due to softness on global steel markets output, the price surge for molybdenum is mainly driven by supply issues:
“With the ongoing output challenges at Codelco, responsible for ~50% of Chilean molybdenum supply, Chilean output remains well below the five-year average, though November did mark a return to y/y growth.
“Meanwhile, Peru’s output is also down y/y, while other key primary producers such as China and the U.S. are also facing production headwinds.”
BMO says the the gains in molybdenum should help by-product credits at many copper operations, reducing headline costs and profits at producers.
Copper mining stocks on a tear
A revived copper price is boosting the sector’s top producers, led by Southern Copper Corp (NYSE:SCCO) which is up 18.8% so far in 2023. Southern Copper, headquartered in Mexico City, is the world’s fifth largest copper producer in terms of volume.
Freeport-McMoran (NYSE:FCX) traded up nearly 4% on Tuesday in heavy volumes of almost 9 million shares by early afternoon. The Phoenix-based company is the world’s second-largest copper producer after Chilean state company Codelco and is up 16.8% just in the past week.
Investors in London-listed Chilean producer Antofagasta (LON:ANTO) are enjoying double digit gains in 2023 as are those who took a bet on Poland’s KGHM (WSE:KGH), which has gained 17% in Warsaw this year.
Even First Quantum Minerals (TSE:FM), locked in a bitter dispute with Panama over government revenues from the Vancouver-based company’s 300,000 tonnes per annum copper mine, is up 9% in 2023 as investors bet on a swift resolution.
Zijin Mining (SHA:601899,HKG:2899), which at around 500,000 tonnes per annum is the world’s ninth largest copper producer, last year acquired the world’s largest primary molybdenum-only mine with annual output of 27,200 tonnes per year. Shares of rapidly-growing Zijin, which is also a significant precious metals producer, are up 8.3% in Shanghai year to date.
Japanese delegation to visit Canada to meet with battery, mining companies
Originally posted on Reuters.com
Japan's Prime Minister Fumio Kishida looks on during his meeting with Canada's Prime Minister Justin Trudeau in Ottawa, Ontario, Canada January 12, 2023. REUTERS/Blair Gable
Japan will send a delegation to meet with Canadian battery and mining companies early this year, while Canada is planning a trade mission to Japan later in October, the leaders of both countries announced on Thursday after meeting in Ottawa.
As this year's host of the Group of Seven (G7), Japanese Prime Minister Fumio Kishida came to Canada to meet Canadian Prime Minister Justin Trudeau before continuing onto Washington, where he will sit down with U.S. President Joe Biden on Friday.
"This spring, we're... looking forward to hosting an important business delegation from Japan," Trudeau said. "They're planning to be meeting with Canadian battery and mining companies and potential partners."
The two leaders hosted a lunch meeting with Canadian business leaders where "they highlighted the growing and exciting business potential between the two countries," according to a statement from Trudeau's office.
Canada has been seeking to woo foreign investment the electric vehicle (EV) supply chain, in particular in mining and processing its abundant critical minerals used in EV batteries, especially for countries who want to reduce their dependence on China for those materials.
Earlier in the day, Kishida said that Japan is looking to Canada to "play a major role, as a resource-rich country" on energy.
Japan's Mitsubishi Corp, through a subsidiary, owns a 15% stake in the LNG Canada joint venture led by Shell, which Trudeau said was the "largest private investment in Canada." The liquefied natural gas terminal is being built in British Columbia to supply Canadian natural gas to Asia.
The two leaders agreed that "China is a central challenge," Kishida said during the news conference, and both reiterated their support for the dismantling of North Korea's nuclear weapons program.
To counter China's influence in the region and increase its own strategic sway, Canada launched an Indo-Pacific strategy in November.
Kishida welcomed Canada's diplomatic pivot toward Asia and its efforts to deepen ties with a fast-growing Indo-Pacific region of 40 countries accounting for almost C$47 trillion ($35.2 trillion) in economic activity.
"The two leaders discussed their concerns about China's actions in the region and agreed on the importance of a coordinated approach to security in the Indo-Pacific," Trudeau's office said in a statement.
($1 = 1.3360 Canadian dollars)