The European Commission is preparing to boost emergency stockpiles of critical minerals amid heightened concern over supply chain disruptions caused by geopolitical conflicts, the Financial Times reported…The measure presents a safeguard for the 27-nation bloc in an environment of rising geopolitical tensions marked by conflict, climate change and cyber threats, according to a draft EU document the FT cited on Saturday…The commission is advising member states to accelerate work on stockpiling commodities such as rare earth minerals and permanent magnets, which are crucial for energy and defence systems, as well as key items such as cable repair modules. 

Western governments should provide price guarantees for critical minerals miners if they are to compete with Chinese rivals who receive huge state support, the boss of leading platinum producer Sibanye-Stillwater has said… The comments by Neal Froneman come as industrialised nations have become alarmed by China’s dominance in the production and processing of critical minerals — but have stopped short of setting prices for raw materials or creating a joint buying programme… “If we mine for the US or even Europe, we should be guaranteed certain prices so that we get the right returns.” Over the past year, China has halted exports of certain materials such as rare earths, gallium, germanium and graphite, creating a squeeze on manufacturing supply chains for the defence, automotive and semiconductor industries in western countries. The idea of a joint buying mechanism, in which the US and allies such as Australia would commit to purchasing materials at certain minimum prices, has been gaining traction since the G7 summit last month, according to people familiar with the governments’ thinking. G7 participants pledged at the summit to develop “standards-based markets” for critical minerals, which is seen as a potential first step towards a joint buying pool…“We incur higher costs, and we have higher costs of capital. There needs to be some form of support to make us competitive, because the model is that it’s a western-world, capitalist system. Shareholders require returns,” he said. 

China is accelerating a high-stakes global land grab for critical minerals, with a string of overseas mining acquisitions worth £7.7bn ($9.8bn) last year alone — the most aggressive push in more than a decade. The move comes as Beijing scrambles to secure the raw materials underpinning modern technology, from electric car batteries to solar panels and semiconductors, in the face of mounting geopolitical pressure…According to data from S&P and Mergermarket, there were ten Chinese mining deals exceeding $100mn (£73mn) in 2023 — the highest number since 2013…Michael Scherb, founder of private equity firm Appian Capital Advisory, told The Telegraph: “There’s been more activity in the past 12 months because Chinese groups believe they have this near-term window. They’re trying to get a lot of M&A done before geopolitics get difficult.” Chinese investors are increasingly being shut out of mining assets in the US, Canada, and Australia amid concerns about the risk of strategic minerals falling under Beijing’s control. However, far from retreating, Chinese firms are simply shifting their focus — snapping up assets in countries with looser restrictions and weaker governance…Among the most aggressive players are CMOC, MMG, and Zijin Mining — all state-backed or heavily connected to China’s industrial machine. These firms have shown a clear readiness to accept lower returns or riskier deals if it means locking down supplies of lithium, cobalt and rare earths — all critical to China's tech ambitions…Meanwhile, Chinese lenders are bankrolling billions in loans for resource projects across Africa, Asia, and Latin America. Many of these countries—including Mali, where military rulers are seizing control of Western-run mines—are welcoming China’s no-questions-asked cash.

The first major projects of the Canadian government’s signature nation-building initiative are likely to be drawn from five key areas that have emerged as “shared priorities” between Ottawa and the provinces, according to a senior government source with knowledge of the government’s current thinking…The five areas — called the Western and Arctic Corridor, the Eastern Energy Partnership, Critical Minerals Pathways, the Next Stage of Nuclear and Export Diversification Infrastructure — were among those discussed and flagged as areas of common ground during a first ministers’ meeting in June, said the source, who asked not to be identified because they were not authorized to speak publicly about the discussions…The Carney government hopes to supercharge Canada’s economic growth and mitigate damage from tariffs levied by the United States by streamlining federal approvals for major projects deemed to be of national importance under new provisions laid out in Bill C-5, which passed Parliament at the end of June…Some large-scale mining and resource project proposals in the North and in remote areas of B.C. and the Prairie provinces have languished for years, with proponents arguing that private investment would flow if strategic investments in infrastructure were made…Canada currently ranks “near the bottom” in terms of mine development timelines, Prospectors & Developers Association of Canada director Jeff Killeen said, with it sometimes taking more than 25 years for a viable project to go from initial discovery to production…Critical Minerals Pathways…The Carney government has said the world is bullish on Canada’s potential to supply critical minerals, so projects that capitalize on this opportunity are likely to draw attention as part of the nation-building initiative…But Ottawa will also be looking at other mines and projects currently in the regulatory pipeline, as well as investments along the entire value chain for critical minerals, including midstream processing, manufacturing and recycling…Sector watchers warn that many early-stage mineral projects struggle economically because they must export their output for processing. In some cases, midstream processing or refining is essential for turning marginal or high-cost mining operations for minerals such as lithium and rare earths into economically viable projects…As a result, governments may want to prioritize investment in infrastructure and mining projects close to where midstream capacity already exists, Killeen said, pointing to the concentration of smelters, refineries and mills in Sudbury, Ont., the country’s only copper smelter in Rouyn-Noranda, Que., and the massive zinc and lead smelting and refining complex in Trail, B.C…“There hasn’t been a new smelter developed in Canada in decades,” he said. “There’s only a few pins in the map in Canada where you take raw material out of a mine and turn it into some further developed, value-added product. If we can fill in that midstream processing gap, that’s a big part of building up the strategy that we want.”