COMMENTARY: Canada Can Help Strengthen Global Security by Unleashing Mining Potential

By Julio Mejía and Elmira Aliakbari

As China has expanded the restriction on the export of rare elements (REEs)—minerals essential for electronics and electric vehicles—Canada has a unique opportunity to strengthen its global position as a reliable producer of these critical minerals. But to unleash its potential as a reliable source of mineral production for our allies and reshape the global market, Canada must adopt a more predictable and competitive policy environment that attracts investment in the mining sector.

China remains the dominant global producer of REEs, responsible for nearly 70 per cent of global output in 2024—estimated at around 245,000 tonnes. Amid escalating trade tensions with the United States, Beijing has tightened export controls on a growing list of REEs and introduced measures limiting the transfer of processing expertise to other countries. While some of these restrictions were temporarily suspended in late 2025, the underlying policy framework continues to expose vulnerabilities in the global supply chain, affecting the production of a wide range of goods—from electric vehicles and chips to F-35 fighter jets, drones and military radars. At the same time, China’s weaponization of mineral supply highlights strategic opportunities for Canada to become a reliable source of critical minerals.

Indeed, Canada holds immense geological resources, with one of the REEs largest known deposits worldwide, estimated at 13 million tonnes in 2024. But Canada is not yet a major producer of REEs and unlocking its role as a key supplier demands substantial private investment. To fully capitalize on this potential, Canada must first establish a more predictable set of policies that create a favourable investment climate for mining exploration and production.

Take Yukon, for example, where deposits of yttrium, europium, neodymium, dysprosium, terbium, and gadolinium are believed to be among North America’s richest REEs reserves. According to a recent survey of mining investors—which tracks investment attractiveness of jurisdictions around the world based on policy factors and geological potential—Yukon ranks as the 8th most attractive jurisdiction in the world for mineral endowment but ranks 40th out of 82 in terms of policy environment. Notably, policy uncertainty is hampering the territory’s mining potential.

Specifically, 76 per cent of respondents cited uncertainty concerning what areas will be protected as a deterrent to investment. Similarly, 74 per cent of respondents for Yukon pointed to the uncertainty regarding environmental regulations as a deterrent to investment. And 69 per cent said that uncertainty over disputed land claims deters investment in the territory.

Unfortunately, similar patterns appear elsewhere in the country. Manitoba, home to world-class REEs deposits, was ranked by investors as the 9th most attractive jurisdiction globally for its geological potential—but only 43rd in terms of policies established to attract investment. In particular, uncertainty over disputed land claims and protected areas were identified by 75 per cent and 63 per cent of respondents for Manitoba, respectively, as the two most significant policy factors deterring investment in the province.

At the same time, investment in British Columbia—home to one of Canada’s most promising undeveloped rare-earth deposits—is also hampered by recent policy developments and judicial decisions that have increased uncertainty around property rights. This year, B.C. ranked only 32nd out of 82 jurisdictions in terms of government policy, despite ranking 4th globally for mineral endowment. According to the survey results, 76 per cent of respondents for the province pointed to the uncertainty concerning disputed land claims as the major deterrent to investment.

Clearly, establishing more predictable and competitive rules is essential to unlocking mining potential across Canada, where policy uncertainty continues to undermine otherwise strong mineral potential. These challenges matter even more as global demand for REEs and other critical minerals is expected to double by 2040.

Canada has the potential to position itself as a reliable global supplier of rare-earth elements and a contributor to international security. But geological abundance alone is not enough. To realize this potential, policymakers must establish a competitive and predictable policy framework that attracts investment.

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