Why critical minerals mined in B.C. could stop being exported to the U.S. amid Trump tariffs
B.C. manufactures or has access to 16 of 50 critical minerals the U.S. considers vital for national security
Economists say B.C.'s mining industry could play a major role if proposed tariffs by U.S. president-elect Donald Trump go through, after Premier David Eby hinted that critical minerals manufactured in the province could be subject to an export ban.
Eby said Tuesday the province is working on a strategy to fight the 25 per cent tariffs on Canadian goods proposed by Trump. The U.S. president-elect is threatening the measure in response to what he says is Canada's inability to tackle illegal immigration and drug smuggling across the Canada-U.S. border.
On Wednesday, Eby, 11 other premiers and the prime minister emerged from an hours-long meeting in Ottawa promising united action on the proposed tariffs, which could devastate Canada.
The premier had suggested Tuesday that retaliatory tariffs and export bans could be part of the response, and cited a smelter operation located in Trail, B.C., which exports minerals that Eby said are critical for the U.S.
"If the United States doesn't get this metal from the Teck smelter in Trail, it's not available at all," Eby said.
Experts say critical minerals, like those manufactured in Trail, could be a new frontier in national security, and would prove to be an important bargaining chip in the event of a trade war.
Here's what critical minerals are and why they could be on the table for potential export bans as Canada looks to respond to Trump's proposed tariffs.
What are critical minerals?
The U.S. and Canada both maintain lists of critical minerals — ranging from aluminum and tin to more obscure elements like ytterbium and hafnium — that both countries say are important for defence, energy production and other key areas.
Michael Goehring, the president of the Mining Association of B.C., said B.C. has access to or produces 16 of the 50 minerals considered critical by the U.S.
"We have 17 critical mineral projects on the horizon right now, along with a number of precious metal projects," he told CBC News on Tuesday.
"The 17 critical mineral projects alone represent some $32 billion in potential investment for British Columbia," he added.
John Steen, director of the Bradshaw Research Institute for Minerals and Mining at the University of B.C., pointed to germanium — which is manufactured at Teck's facility in Trail — as one of the materials most important to U.S industry.
"It's used for solar panels, used for fibre optics and, particularly with military applications like night vision goggles, it has important applications there as well," he said.
Where are they manufactured?
There are a number of mines and manufacturing facilities across B.C. and Canada for critical minerals.
The B.C. government says the province is Canada's largest producer of copper, and only producer of molybdenum, which are both considered critical minerals.
Metallic minerals and metallurgical coal, taken together, are B.C.'s largest source of export value, according to B.C. Stats.
Why could they be a bargaining tool?
Steen said critical minerals are particularly valuable for the Canadian economy, given the role they play in national security.
"China has banned the export of germanium and other metals like gallium into the U.S," he said. "So the U.S. has to get that from Canada."
Werner Antweiler, an economics professor at UBC, said critical minerals are one area where Canada has leverage, and that an export ban would have noticeable effects on the U.S.
"It is important to send a message that is strong, that is united and that has a measurable outcome," he said. "And that is the only language that [Trump] will listen to."
Could an export ban actually happen?
While Ontario Premier Doug Ford says Canada must be prepared to use "every tool in its toolbox" to retaliate against the U.S. in the event of tariffs, much of the talk of an export ban is speculative at this point.
Alberta Premier Danielle Smith has balked at an export ban on crude oil to the U.S., which Antweiler said would be Canada's biggest bargaining chip.
"I think it's very important to find the instruments that allow us to achieve the objective, which is to end this economic warfare before it really gets started," the economist said.
"We would all suffer — the U.S. consumers and the Canadian producers — if tariffs would go ahead."
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With files from Liam Britten and Corey Bullock