Natural Resources committee  I can speak to that very briefly. As Pierre mentioned, the association does support carbon pricing. What we're trying to do is effect behavioural change and incentivize the appropriate behaviours on the basis of a carbon price. At the end of the day, we also need to be sensitive that a one-size-fits-all solution isn't apportioned equally in all shapes and sizes.

Finance committee  I'll start by saying it's not only things that different mining companies across the country are considering. I'd say it's things that our membership has been working very collaboratively on to ensure that best practices are shared, that what is learned by one company can be experienced and submitted to others so that the maximum level of safety and precautionary measures can be put in place to protect employees and protect the communities in and around which our members operate.

Finance committee  Just for clarity, so that everybody understands, critical minerals are a broad set of materials, of which Canada generates a large volume. They could be base metals. They also could be rare earths. I think the question Sean is getting at here has particularly to do with rare earths: What do we need to be able to reshore and create a market for the development of these materials from Canada, through a North American or predominantly western-based supply chain?

Finance committee  Mr. Chair, can I pipe into that question as well?

Finance committee  I'll be very quick. With respect to market access, there's an economic rationale that remains very relevant for existing production even outside the question of expanded production in the oil sands, and that is to alleviate the sale of Canadian petroleum products at a discount from market value.

Finance committee  Thanks, Pierre. In 2018, mining contributed $97 billion to Canada’s GDP, employed nearly 630,000 workers and accounted for 20%, or $104.5 billion, of Canada’s total export value. Proportionally, mining is the largest private sector employer of indigenous peoples, and our oil sands members are among the top employers and partners of indigenous-owned businesses.

Finance committee  This is what we would perceive to be a good start. There are really a couple of buckets that need to be addressed. One is that there needs to be some RD and D to improve the processing, separating and refining of the finished products for rare earths. Companies have done that before; these processes exist.

Finance committee  I can tell you that the mining industry is seized with this as well.

Finance committee  No, I'm just amplifying the concern. We've had members in to talk with officials at Finance about this issue as well.

Finance committee  Yes.

Finance committee  Sure. It's complicated. We do have a number of rare earth deposits. We have a permanent rare earth element mine in the Northwest Territories. We know how to extract those materials. The challenge with rare earth elements is that there is no market for those products. The reason for this is that China has coerced the market, so much so that out of concern for controlling supply they will force the price to plummet to prohibit financing for these projects to be able to move forward.

Finance committee  Any time there's an opportunity to diversify a supply source away from Chinese control, the Chinese very quickly act to extinguish that opportunity.

Finance committee  That's correct.

Finance committee  Yes.

Finance committee  Well, it is. I mean, at the end of the day, countries are re-evaluating the reliability of their existing supply chains for these materials, on the basis of concern that growing geopolitical tensions and trade conflicts could cause an abrupt interruption of these essential inputs into their national security as well as their economic functioning.