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MasterFubar t1_iud8g9u wrote

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

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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