Teck Resources (NYSE: TECK), the Vancouver-based diversified mining giant, has outlined detailed recommendations for establishing a Canadian Strategic Metals Reserve focused on germanium and other defense-relevant critical minerals, as Western allies seek to reduce dependence on Chinese supply chains.
The Vancouver-based company proposed a framework including floor-price agreements, production-linked tax credits, and federal procurement backing to support domestic stockpiling of strategic materials. The plan also calls for dedicated funding through Canada’s Strategic Innovation Fund to upgrade facilities like Teck’s Trail Operations in British Columbia.
The recommendations come as China has tightened export controls on critical minerals. In December, Beijing banned exports of germanium, gallium and antimony to the United States, materials essential for semiconductors, defense applications and advanced technologies.
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Teck is positioned as a key supplier in any Canadian reserve system. The company operates one of the world’s largest integrated germanium production facilities, processing the strategic metal as a byproduct from zinc ore mined at its Red Dog operation in Alaska and refined at Trail Operations.
The current government under Prime Minister Mark Carney has made critical minerals development a cornerstone of economic policy. In August, Canada signed a joint declaration with Germany to deepen cooperation on critical mineral supply chains, and Carney has said Canada will meet new NATO spending targets partly through critical minerals infrastructure development.
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China currently controls 60-83% of global germanium production and 40-90% of processing capacity for many critical minerals, according to industry estimates. The concentration has raised national security concerns as demand grows for materials used in electric vehicles, renewable energy systems and military applications.
Teck CEO Jonathan Price has previously warned that Canada’s $4 billion commitment over eight years for critical mineral development pales against China’s $20 billion investment in 2023 alone. The company has been in talks with both Canadian and US governments about expanding germanium production capabilities.
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