Natural Resources Committee on Dec. 1st, 2022

[Shannon Stubbs, Conservative, Lakeland, AB]

I'm sorry, Minister, but I just got shown a yellow card. It's easier to have this rapport in person. I'm sorry to cut you off.

I have a quick question about LNG. Of course, in the estimates there's no mention whatsoever of LNG. Germany, of course, came to Canada as their first choice for LNG. The Deputy Prime Minister has said that projects like LNG and other energy projects for our allies should be accelerated, but the Prime Minister has said that providing energy security to our allies means an aggressive phase-out of oil and gas. Those are contradictory messages. The U.S. has managed to construct seven LNG facilities in the time that Canada has lost 25 opportunities. Germany permitted and constructed their import facility in 194 days.

I know you've mentioned working groups—

[The Chair, Liberal, John Aldag]

Mrs. Stubbs, I'm sorry, but we are over time, and—

[Shannon Stubbs, Conservative, Lakeland, AB]

—for exporting LNG to Europe. Is there a cost for that in the estimates, or can that be anticipated in the future?

[The Chair, Liberal, John Aldag]

Minister, perhaps you can respond briefly. We are at the end of the time, but I'll give you a chance to respond to that.

I'll add an equivalent amount of time to each of the other parties' allotment in this round.

[Jonathan Wilkinson, Liberal, North Vancouver, BC]

We have been working with the Germans in particular in looking at the opportunity to find something that fits within their window. They want to see product in Europe within three years or they're really not interested, in part because they are aggressively moving towards hydrogen, which is something that Canada is very interested in supplying to Germany. We are working with project proponents. I can tell you that the biggest barrier has nothing to do with Canada. It is actually regulatory uncertainty in the United States.

Those conversations continue.

[The Chair, Liberal, John Aldag]

Thank you. That's the end of that round.

We'll go now to Ms. Lapointe.

Ms. Lapointe, to keep it fair here, we'll give you seven and a half minutes.

[Viviane LaPointe, Liberal, Sudbury, ON]

Thank you, Chair.

Minister, we're very pleased to see you here today.

Critical minerals and mining are not only major contributors to Canada's economy. They are also vitally important to the people of Sudbury. I'm sure it won't come as any surprise to you that I will focus my questions today on the development of critical minerals.

Minister, in this year's supplementary estimates, we can see that funding for the development of Canada's critical minerals value chain is supporting the critical minerals centre of excellence. Can you please explain how this centre will support the Canadian mining sector?

[Jonathan Wilkinson, Liberal, North Vancouver, BC]

Sure. Thank you for the question.

Let me begin by thanking you for all the work you do on this file and your continued advocacy for your constituents. I know that it's very important in your riding.

The critical minerals centre of excellence at Natural Resources Canada leads the development and coordination of Canada's policies and programs on critical minerals, in collaboration with industry, provinces, territories, indigenous and non-governmental organizations, and international partners. The centre aims to advance critical mineral resources and value chains that are essential to the energy transition. This organization plays an important role in supporting the development of our strategy, which, as some of you will recall, we've been working on for a period of time and will be announcing very shortly.

One recommendation to establish this centre came out of this committee's report on critical minerals in June 2021. The centre will help prospective investors, mining operations and others who are part of the critical minerals value chain, such as clean tech, zero-emission vehicle facilities and electric battery manufacturers. Similar to the regional energy and resource tables that I noted earlier, the centre aims to navigate various regulatory environments to advance the use of Canada's critical minerals and to create a greener future for future generations.

[Mario Simard, Bloc, Jonquière, QC]

I'm sorry, Mr. Chair, but sound quality is still an issue.

[The Chair, Liberal, John Aldag]

Please slow down, Minister. I was listening in on the French interpretation. Slow it down or take a pause between sentences.

I've stopped the clock, Ms. Lapointe. When we get going, you'll have four minutes.

Minister, if you are ready to continue, just go slowly, and we'll get through this.

[Jonathan Wilkinson, Liberal, North Vancouver, BC]

Okay.

[Viviane LaPointe, Liberal, Sudbury, ON]

Minister, in your 2021 mandate letter, you were asked to work on a Canadian critical minerals strategy.

Can you please give the committee an update on where you are with the strategy?

[Jonathan Wilkinson, Liberal, North Vancouver, BC]

You will no doubt remember that the 2022 budget provided up to $3.8 billion for the development of our strategy. Over the past year, I have been working with the Minister of Innovation, Science and Economic Development in order to develop the first Canadian critical minerals strategy. I'm happy to state that Canada's critical minerals strategy will be officially announced in a few days.

The world is moving towards a cleaner future, and Canada needs to be able to meet the needs of a green and digital economy. Our strategy will improve the resilience of the critical minerals supply chain and position Canada as a world leader in sustainable production of these minerals and innovative technologies which are required for the energy transition.

This strategy is also the result of widespread consultation with industry and stakeholders, and it will create thousands of good jobs, help our economy grow and make Canada a key player in the global industry of critical minerals, which is booming right now. Canada is and will always be a dependable, safe and sustainable supplier of critical minerals which are increasingly in demand in the world.

[Viviane LaPointe, Liberal, Sudbury, ON]

Thank you, Minister.

We know that the world wants Canada's critical minerals, but we also know that those alone are not going to secure our success and that we must have some investment in value chains as well.

Minister, does the critical minerals strategy work apply to local value chains as well as global value chains?

[Jonathan Wilkinson, Liberal, North Vancouver, BC]

Yes, it absolutely does. I would say at the higher level in terms of global value chains and national value chains, this represents a generational economic opportunity for Canada all the way from extractions and mineral processing to battery manufacturing and electrical vehicle manufacturing. Certainly, this activity will support local economies and value chains very much, including in Sudbury. They will essentially be an important piece for local processing, product manufacturers and suppliers in the industry.

We see this as an enormous opportunity for rural communities and smaller communities that are located in resource-producing areas, and see significant opportunities for areas like Windsor and Oakville that build cars.

[Viviane LaPointe, Liberal, Sudbury, ON]

Minister, critical minerals are essential to the development of clean technology, such as electronic vehicles and their batteries.

What role do critical minerals play in order to enable us to seize the opportunities created by the energy transition in the global fight against climate change?

[Jonathan Wilkinson, Liberal, North Vancouver, BC]

Thank you for your question.

A good chunk of our work at the Department of Natural Resources is aimed at ensuring that our resources are mined in a sustainable fashion and that we have a sustainable and solid value chain [Technical difficulty—Editor] our strategy will guarantee this.

Developing our mining sector is a generational economic opportunity for Canada, from mining...

[The Chair, Liberal, John Aldag]

Minister, could you wait a second? The Internet was breaking up, so we're going to give it a second.

Okay, we'll get you to continue now.

[Jonathan Wilkinson, Liberal, North Vancouver, BC]

Developing our mining sector is a generational economic opportunity for Canada, from mining right through to processing. Critical minerals are a crucial part of our economic development.

We are lucky to find most of the minerals that are used to produce batteries in our country. We are pledging to continue to work with industry, the provinces and territories as well as indigenous communities to support the development of the battery sector in Canada. My colleague, Minister Champagne, has made a series of announcements over the past few months about the battery sector, in order to show the world that Canada not only has the capacity to mine critical minerals, but also to process them into final products.

[Viviane LaPointe, Liberal, Sudbury, ON]

I will cede my remaining time to my colleague James Maloney.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

Thank you, Ms. Lapointe and Mr. Chair.

I have one question, Minister, to clarify something Mrs. Stubbs said.

On the issue of TMX, we had a witness here on Tuesday of this week whose evidence was quite clear that without the government purchasing TMX, the project would not have gone ahead. It is a project of significant national importance.

Mrs. Stubbs asked whether the conditions were right to make it an asset available for purchase. The question should properly be framed like this: TMX would not have been available at all for purchase if it weren't for the government getting involved in buying it and making sure the project went ahead. Would you agree with that?

[Jonathan Wilkinson, Liberal, North Vancouver, BC]

I would entirely agree with that. This project would not have existed had the government not made the decision—which was not one we took lightly—to purchase the asset to ensure that Canada would be getting full value for its resources going forward.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

Thank you, Minister.

[The Chair, Liberal, John Aldag]

Thank you.

We'll now move to Mr. Simard, who will have seven and a half minutes. We will try to keep it at that.

[Mario Simard, Bloc, Jonquière, QC]

Thank you, Mr. Chair.

Minister, I would like to go back to the question that my colleague, Ms. Stubbs, asked about Trans Mountain.

When I read the May 2022 statement made by the Minister of Finance, I understood that there would be no more government funding for Trans Mountain.

Earlier, you told my colleague that the $6 million will be redirected towards indigenous communities. To my mind, social acceptability and mitigation measures in response to legitimate complaints from indigenous communities are part of the risk.

If the department indicates in a statement that associated risks are mitigated and that no more government funding will be offered, then I don't understand what is going on with the $6 million. Can you please explain this?