MINEX Forum

Tag: G7

  • Canada Unveils C$1.4 Billion G7-Backed Critical Minerals Investment Plan

    Canada Unveils C$1.4 Billion G7-Backed Critical Minerals Investment Plan

    Rio Tinto Group, Nouveau Monde Graphite Inc., and more than a dozen other companies are set to benefit from a C$1.4 billion ($1 billion) package of new investments and partnerships announced by the Canadian government at the Group of Seven (G7) energy ministers’ meeting in Toronto.

    The measures, unveiled by Prime Minister Mark Carney’s administration, are part of a G7 initiative launched in June to strengthen member nations’ access to critical minerals vital for clean energy, defense, and advanced manufacturing, while reducing reliance on Chinese-dominated supply chains.

    “We have an incredible set of cards in our critical mineral resources,” said Energy Minister Tim Hodgson. “These actions, with the support of our allies, are designed to make sure Canada has all the cards it needs in a world where access to critical minerals is becoming a tool of political and geopolitical coercion.”

    The newly announced projects aim to expand domestic production capacity for metals such as lithium, nickel, copper, and rare earth elements, supporting the transition to clean technologies and reinforcing the resilience of North America’s industrial base.

    Key funding allocations include:

    • C$25 million for Rio Tinto’s scandium plant in Quebec, which will supply the aerospace and defense sectors.

    • C$36.3 million for Ucore Rare Metals Inc. to expand its rare earths processing plant in Ontario.

    • Support for Northern Graphite Corp., Focus Graphite Inc., and Torngat Metals Ltd., alongside a new supply agreement between Canada, Panasonic Holdings Corp., and Traxys North America LLC to secure graphite for battery production.

    Shares of Nouveau Monde Graphite surged 24% intraday on news of the deal before closing 13% higher in Toronto, while Northern Graphite rose 29%.

    Not all financing is finalized: Norway’s Vianode AS, which plans to build a synthetic graphite plant in Ontario, received a letter of interest for up to $500 million in potential Canadian financing, plus $300 million in support from the German government.

    In parallel, Canada has designated critical minerals as essential to national defense and strategic interests, authorizing a domestic stockpiling program and participation in multilateral caching efforts with allies. The government intends to stockpile three types of critical minerals, though it did not disclose which ones.

    “These measures will strengthen our capabilities in strategic sectors and contribute to NATO and defense spending commitments,” Hodgson said. “By protecting domestic production under volatile global conditions, we ensure a secure supply of critical minerals to Canadian and allied defense industries.”

  • EU Seeks G7 Coordination to Counter China’s Expanded Rare Earth Export Controls

    EU Seeks G7 Coordination to Counter China’s Expanded Rare Earth Export Controls

    The European Union is working with the United States and other G7 partners to coordinate a response to China’s expanded export controls on rare earth minerals, senior EU trade officials said on Tuesday.

    Beijing, which dominates global production and refining of rare earths, tightened restrictions last week, adding more elements and refining technologies to its control list, along with new scrutiny for semiconductor-related exports. The move comes ahead of planned talks between Presidents Donald Trump and Xi Jinping, raising fresh concerns about supply security for key Western industries.

    European Trade Commissioner Maros Sefcovic described China’s measures as “unjustified” and said EU ministers gathered in Denmark had identified the issue as a “critical concern.”

    Previous Chinese export restrictions earlier this year caused widespread supply shortages, particularly for automakers, before temporary relief came through emergency supply agreements between Europe and the US.

    Sefcovic confirmed that G7 finance ministers are expected to discuss coordinated options on Wednesday.

    “We brainstormed yesterday that it would be advisable after this first discussion to have a G7 video call pretty soon,” he said, adding that he had already spoken with US Commerce Secretary Howard Lutnick on the issue.

    Sefcovic is also scheduled to hold talks with his Chinese counterpart early next week.

    Danish Foreign Minister Lars Rasmussen emphasized the need for a united and firm EU response, calling for solidarity with Washington.

    “We must be tough but realistic. This is an area of common interest with our friends in the US. If we stand together, we can better pressure China to act fairly,” Rasmussen said.

    While Trump’s response included a threat of 100% tariffs on Chinese imports, triggering a brief Wall Street sell-off, Rasmussen cautioned against escalation, advocating instead for “frank and open discussions” with Beijing.

    Sefcovic added that coordination among G7 nations could include joint efforts to diversify supply chains, accelerating critical mineral extraction and processing projects outside China.

    “Of course these projects take time,” he said, “but with this signal from China, it’s clear we must focus on speeding them up as much as possible.”

  • G7 Nations Set 2035 Deadline to End Unabated Coal Use

    G7 Nations Set 2035 Deadline to End Unabated Coal Use

    In a significant move towards combating climate change, the Group of Seven (G7) nations declared on Tuesday their commitment to terminating the use of “unabated” coal by 2035. This resolution, reached after deliberations among energy, climate, and environment ministers in Turin, Italy, marks a breakthrough in G7 negotiations that had previously stalled over several years. The communiqué released following the talks stipulates the intention to “phase out existing unabated coal power generation in our energy systems during the first half of 2030s.” However, by specifying “unabated” coal, the agreement offers flexibility for countries to continue employing this fossil fuel post-2035 if they implement measures to capture carbon emissions before release into the atmosphere. Furthermore, the accord allows countries the option to adopt a timeline aligned with maintaining a limit of 1.5°C temperature rise, in accordance with their net-zero pathways. Several G7 members, representing major economies in the developed world, have made substantial progress in reducing coal dependency. Notably, the UK, Italy, and Canada generate less than 6% of their electricity from coal, while France relies minimally on it. Conversely, coal still constitutes a significant portion of electricity generation in Japan (32%), Germany (27%), and the US (16%), according to data from the think tank Ember. This announcement follows closely on the heels of the US Environmental Protection Agency’s unveiling of new regulations mandating coal-fired power plants to either capture the majority of their climate pollutants or cease operations by 2039. Italian Environment and Energy Security Minister Gilberto Pichetto Fratin defended the agreement, emphasizing that the language assures a phased reduction of coal usage across G7 nations while safeguarding economic and social stability. Although some climate experts view the agreement positively as a step forward after years of impasse, others criticize the 2035 deadline as insufficient for limiting global warming to 1.5 degrees Celsius. Climate Analytics contends that to achieve this goal, all coal usage in G7 countries must cease by 2030 at the latest, with natural gas use ending by 2035. Jane Ellis, head of climate policy at Climate Analytics, underscores the necessity for a swifter transition to renewables, particularly highlighting concerns regarding ongoing investments in domestic gas facilities by G7 governments. Notably, while the resolution addresses coal, it omits any mention of a phase-out plan for gas, despite its significant contribution to CO2 emissions. The G7’s leadership in climate policy often influences broader international efforts, including those within the G20, where decisions impact major emitters and fossil fuel producers alike.

  • G7 to announce Russian diamonds ban in 2-3 weeks

    G7 to announce Russian diamonds ban in 2-3 weeks

    The embargo, proposed by Belgium where the city of Antwerp is the world’s No. 1 one diamond trading hub, will come into effect in January, one of the government officials, who asked not to be named, told reporters in Brussels.

    If the ban on the multi-million dollar trade is announced as anticipated, this would lead to a split in the global diamond market as the G7 accounts for close to 40% of this market.

    “We’re talking about restructuring a global market” the official said, acknowledging that the system will not work perfectly right away and the G7 was still evaluating Belgium’s proposed plan.

    “Russia is the biggest supplier globally. With this system, we are cutting them out, leaving them in an inferior market with lower prices. We are slashing the financial flows from this sector.”

    Efforts to reduce Russia’s revenue from diamond exports and build on Washington’s existing sanctions on Russia’s Alrosa ALRS.MM, the world’s largest producer, have been under discussion among leaders of the G7 since last year.

    The EU bought 1.4 billion euros ($1.5 billion) worth of Russian diamonds last year, according to Eurostat, as it banned neither the gem imports nor blacklisted Alrosa.

    The EU has previously floated a ban of its own but Belgium was concerned that this would divert trading to other centres and away from Antwerp. Further, the EU on its own only accounts for 15% of the global market