MasterFubar t1_iuda1y5 wrote on October 30, 2022 at 1:39 PM

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

> 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.

shiver-yer-timbers t1_iudacfv wrote on October 30, 2022 at 1:41 PM

because things the canadian government deems as critical shouldn't be allowed to come under the control of a foreign entity.

MasterFubar t1_iudbbwd wrote on October 30, 2022 at 1:49 PM

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.

shiver-yer-timbers t1_iudcmnz wrote on October 30, 2022 at 2:00 PM

Now you're being asinine.

Spida81 t1_iuf42pi wrote on October 30, 2022 at 9:11 PM

/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.