CALGARY — The federal government is preparing to spend up to $400 million to expand Teck Resources’ critical minerals processing operations in British Columbia, as Ottawa moves to secure domestic supplies of materials increasingly viewed as essential for defence, technology and energy industries.Energy and Natural Resources Minister Tim Hodgson announced the agreement Monday in Trail, BC, describing critical minerals as strategic assets at a time of rising geopolitical tensions, trade disputes and rapid technological advancement.“We are facing a trade war we did not ask for, the most volatile geopolitics since the end of World War II, and technological change at a pace not seen in decades,” Hodgson said.He argued Canada is well-positioned to capitalize on growing global demand for critical minerals used in semiconductors, telecommunications equipment, defence technologies, electric vehicles, batteries and clean energy infrastructure.The funding marks the first major project supported through Ottawa’s Canada Critical Mineral Accelerator program, which was established last year to speed up development of minerals deemed important for economic sovereignty, national security and the energy transition. The program is administered by Export Development Canada..Ottawa approves Anglo Teck deal, Joly says merger is a 'net benefit' for Canada.Under the proposed agreement, the federal government said the Canada Growth Fund could make an “equity-like investment” of up to $400 million into Teck’s Trail smelting and refining complex.The facility, one of the largest integrated zinc and lead smelting operations in the world, currently produces 19 different products and employs more than 1,400 workers.Teck Resources is pursuing an expansion valued at up to $850 million that would significantly increase production of germanium and antimony while adding new gallium processing capacity.Germanium is used in fibre-optic systems, infrared technology and semiconductors. Antimony is a key ingredient in batteries, flame retardants and specialized alloys, while gallium is used in advanced semiconductor manufacturing for telecommunications, radar systems and electronics.The federal government said the agreement may also provide Ottawa with rights to secure a portion of future production from the expanded facility.Teck president and chief executive officer Jonathan Price said the partnership would help accelerate production of minerals increasingly sought by governments and manufacturers around the world.“By leveraging Trail’s existing infrastructure and expertise, this initiative has the potential to deliver new supply of strategic metals while providing strong returns for Teck shareholders,” Price said.The announcement comes as Teck moves ahead with a major corporate restructuring. Last year, the company reached a deal with Anglo American to combine their copper businesses into a new mining giant valued at roughly $70 billion.The merged company, to be known as Anglo Teck, is expected to maintain its headquarters in Vancouver. When the transaction was announced in September, Anglo American said it anticipated the deal would close within 12 to 18 months.
