The M&E Dispatch // 120

This edition is sponsored by Idle Iron

Hello Everyone,

Canada is officially treating critical minerals as a matter of national security, rolling out nearly $1.9 billion in new funding and, for the first time, invoking the Defence Production Act to stockpile key metals and guarantee producers a minimum price.

At the G7 Energy and Environment Ministers’ meeting in Toronto, Energy Minister Tim Hodgson unveiled 26 projects spanning graphite, rare earths, scandium, and more, part of a $6.4 billion G7-wide investment wave designed to loosen China’s grip on the global supply chain.

A national-security play for miners

The government’s new powers allow it to guarantee long-term buyers and price floors, a move industry leaders say could finally make Canadian mines bankable.

It raises the question: what happens when the market finally gets the stability it’s been begging for? Will investors flood back into Canadian projects, or will red tape and risk aversion still keep the capital away?

Ottawa’s Canada Growth Fund is already testing new waters with a $25-million, equity-like investment in Rio Tinto’s scandium operation in Sorel-Tracy, Que. A notable first for Canada’s federal mining investments and a clear sign that the rules are changing.

Other funded projects include Nouveau Monde Graphite’s Matawinie mine, Torngat Metals’ Strange Lake rare-earth project, and a new graphite-technology collaboration involving Ukrainian engineers. Norway’s Vianode also announced plans for a $2 billion graphite factory in St. Thomas, Ontario.

Markets react, and investors notice

The announcement sent Canadian critical-minerals stocks surging:

• Northern Graphite +25 %

• UCore Rare Metals +10 %

• Nouveau Monde Graphite +6.5 %

Could this be the start of a sustained rally for Canada’s next generation of miners, or just a short-term jolt? Investors have seen plenty of buzz before. But this time, Ottawa’s backing comes with something tangible: demand certainty.

Industrial strategy 2.0?

Hodgson said many of the new deals include safeguards against commodity-price crashes, and that Ottawa is working with Teck Resources on setting similar price floors for niche minerals, effectively giving producers a public backstop against sudden market drops.

The Defence Production Act framework also opens the door to strategic mineral reserves tied to NATO supply chains.

For decades, Canada has debated whether to take a more hands-on approach to its resource economy. Is this finally industrial strategy 2.0, a blend of free market and state muscle? Or just another cycle of subsidy with a new coat of paint?

Analysts say the move positions Canada as a trusted supplier of clean-energy and defence-grade materials, even as global demand accelerates. Domestic capital spending in mining is projected to hit $16.5 billion this year, up from a decade-low $9 billion in 2017, but still short of the $30 billion by 2040 the Canadian Climate Institute recommends.

Canada isn’t just funding mines, it’s building a buyers’ club with teeth.

But if Ottawa’s playing for keeps, will industry play along?
Will this be remembered as the moment Canada stopped exporting opportunity and started exporting strategy?

Either way, the era of “wait and see” is over.

// The Dirt

I broke this section today - No time to fix it before dispatch time. Sorry.
-Lee

// The Hustle

Off to Kingston this week for a 4 game tournament and I’m filled with joy watching my son play the game he loves in a world, that for him, is perfect.

New friends, new stress, new home - Same smile on his face.

Things are hard for a lot of people right now, myself included, but it sure is a privilege to watch him play and to share these moments each week with you.

I know that for many of you this publication has changed significantly since you first signed up and I’m thankful that you’re still here.

Enjoy the week, I know I will.

- Lee