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MasterFubar t1_iud0ud3 wrote

Reply to comment by shiver-yer-timbers in Canada restricting foreign state-owned firms from critical mineral industry by NineteenSixtySix

This is not about foreign ownership, but foreign government ownership.

Canada is in a peculiar situation, because it's a mineral-rich country that doesn't have any really big mining company. If they want investment in mining they must allow foreign companies to own the mines.

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ss3423 t1_iud3gur wrote

They literally have gold corp.

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WestEst101 t1_iud7e1d wrote

Following the 2019 merger with Colorado’s Newmont Corp to form Newmont Gold Corp, Gold Corp is now mostly foreign owned and is no longer majority Canadian

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BlishBlash t1_iud6rle wrote

"they must allow"

They should just nationalize it.

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MasterFubar t1_iud7zlq wrote

> They should just nationalize it.

How would that get investments? Who would want to invest in a country that does that?

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Rhannmah t1_iudg5tq wrote

I don't want investments, I want Canadians to control every step of the process so that the profits come right back to us and not in the pockets of some offshore multitrillion dollar conglomerate.

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burner_ob t1_iudnwzc wrote

And invest the proceeds in some kind of sovereign wealth fund that will outlive the natural resources it's based on. Something to ensure that mineral and other natural resource revenues are used to create long-term national wealth that is mandated to fund things like health care and education, and is insulated from other government spending.

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tickleMyBigPoop t1_iudp1x1 wrote

Cutting off foreign direct investment would lead to about 2.5 million jobs out of 15 million jobs disappearing. The best way to end FDI is nationalizing something.

“My name is r/Rhannmah from the Alberta Oblast and i would love to end FDI into Canada”

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Rhannmah t1_iuetd12 wrote

Here in Quebec we kicked out the private electricity companies 60 years ago and now we enjoy the most affordable electric energy in the world, and we even export our surplus for profits. No jobs disappeared, on the contrary many jobs were created. I want that for every resource in this country.

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zenzukai t1_iud7321 wrote

Nutrien, Barrick, Cameco, Agnico are some pretty big companies all headquartered in Canada. Not that it really matters in mining land, headquarters are often about tax benefits more than operations. Rio Tinto, BHP and most heavyweights have operations in Canada. Canadian headquartered companies also have huge mines all around the world.

What matters most is where the mine is located, not as much the company operating it.

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bertoshea t1_iudhxui wrote

>Nutrien, Barrick, Cameco, Agnico

And Teck, First Quantum.....

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ChrisFromIT t1_iudygzn wrote

>Canadian headquartered companies also have huge mines all around the world.

You could say mining companies are one of our national exports.

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HelixFish t1_iud9s2f wrote

Bullshit. They MUST? No, there are opportunities for Canadian companies and gov here. Maybe they can partner with U.S.A. companies.

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shiver-yer-timbers t1_iud74qn wrote

foreign government ownership is foreign ownership....

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no_comment_mister t1_iufznpa wrote

And China has the only businesses in this space which is major international mining operations in western countries. See Iron ore in Australia.

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MasterFubar t1_iud8g9u wrote

It's not foreign private ownership, there's the difference. A private company invests for profit, a government invest for strategic purposes.

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shiver-yer-timbers t1_iud8xfv wrote

right but both are still foreign entities. ...My point is foreign entities, whether private or government, shouldn't be allowed to own industries or resources in Canada.

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no_comment_mister t1_iug05hp wrote

Technically they don't own the resources. All companies whether they be local or outside pay rent on mining leases and pay royalties on the mined resource. They only own the product once the ore has been processed and the royalty has been paid.

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tickleMyBigPoop t1_iudokbs wrote

Lol that’s a good way chase away foreign investment ….which Canada is the #3 location for…

Which contributes to 2.5 million jobs out of 15 million jobs…

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MasterFubar t1_iuda1y5 wrote

> foreign entities, whether private or government, shouldn't be allowed to own industries or resources in Canada.

Why not? This hasn't worked well anywhere it has been tried. Look at Cuba or North Korea for some examples.

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shiver-yer-timbers t1_iudacfv wrote

because things the canadian government deems as critical shouldn't be allowed to come under the control of a foreign entity.

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MasterFubar t1_iudbbwd wrote

What if something the Canadian government deems as critical isn't available in Canada?

For instance, manganese, vanadium, niobium are essential for high strength steel but Canada has no mines for these minerals. They are under control of foreign entities, no matter what the Canadian government says or does.

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shiver-yer-timbers t1_iudcmnz wrote

Now you're being asinine.

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Spida81 t1_iuf42pi wrote

/u/MasterFubar is right though. Stripping private companies out of the supply chain is a horrible idea. Universally, state operated mines suffer substandard productivity, often have issues with supply of goods and materials as purchases get tied up in governmental controls and barriers and struggle to attract and hold foreign talent. That last point is so easily overlooked but can make the difference between a profitable operation and a failure.

You can decide to write off losses as the cost of maintaining control, but in practical terms you have just stripped significant revenue streams from your government through royalties and taxes.

Government permitting contracts may sometimes have clauses ensuring local supply regardless. You lose a lot and gain in practical terms nothing.

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ramriot t1_iud6lts wrote

Several IFs there, perhaps we make our decisions under different criteria, thus this law.

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brainwashlol t1_iudardw wrote

They have many massive mining companies mining resources in other countries.

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Sam-buca_I_Am t1_iuddvpq wrote

> If they want investment in mining they must allow foreign companies to own the mines.

You say that as if Canada doesn't do crown corporations and HAS to get the minerals out of the ground and CAN'T POSSIBLY home grow it. There's no "must" about it.

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