National Defence

The House of Commons National Defence Committee met to study the nexus between national defence, national security, and Canada's critical mineral sector. Appearing as witnesses were Dr. Michael Byers, a professor at the University of British Columbia; Christopher Hernandez-Roy, Deputy Director and Senior Fellow at the Center for Strategic and International Studies; and Dr. Elizabeth Steyn, Associate Dean at the University of Calgary's Faculty of Law.

Dr. Michael Byers focused on the need for vigilance in foreign investment, particularly regarding U.S. Department of Defense equity stakes in Canadian mines, which he argued could create disputes over mineral control during crises. He recommended that critical mineral negotiations with the U.S. be deferred to broader CUSMA talks, and suggested a government-provided price floor to protect Canadian investors from Chinese dumping. He disagreed with the notion that the Investment Canada Act is insufficient, stating that political will is the key factor, but he acknowledged that past oversight lapses, such as the Tanco Mine sale, require stronger scrutiny of foreign ownership.

Christopher Hernandez-Roy emphasized that critical minerals are now a keystone of national security, with Canada holding reserves of all 12 NATO-identified defence minerals. He recommended establishing a Canadian version of the U.S. Defence Production Act Title III to co-invest in defence-critical mineral projects, and advocated for strategic stockpiles, noting that private company tax breaks could supplement government reserves. He highlighted that China's monopoly on certain minerals creates bottleneck risks, and argued that Canada should use its mineral wealth as leverage in U.S. relations while diversifying ties with Europe and other allies.

Dr. Elizabeth Steyn made ten recommendations, including revising Canada's critical minerals list to focus on defence needs, establishing a five-year strategic stockpile as a hedge against prolonged conflict, and prioritizing Canadian needs before supplying allies. She warned against both Chinese and U.S. investments tied to 100% offtake agreements, citing a Montreal germanium company as a risk, and urged Canada to look to Europe and the global south for alliances. She disagreed with Byers on the sufficiency of the Investment Canada Act, arguing that more subtle measures, such as direct government investment in mining, are needed to avoid antagonizing the U.S.

During questions, witnesses addressed specific concerns: Byers noted that Arctic sovereignty is undisputed but control over mineral shipments is critical; Hernandez-Roy explained that Chinese infrastructure investments in Latin America pose dual-use risks; and Steyn highlighted that many "Canadian" mining companies have hidden Chinese ownership. On stockpiles, Steyn confirmed Canada has none despite a 2025 budget announcement, while Hernandez-Roy noted that the new NATO defence spending metric could fund mineral stockpiles and infrastructure. The committee also discussed the need to balance community consultation with mining development, with Steyn advocating for equity stakeholding to gain buy-in, and Byers urging patience with government timelines. No procedural motions or votes were recorded in the transcript.