BERLIN, Aug 26 (Reuters) - Canada is working with its

allies to potentially fund critical mineral transactions,

similar to what the U.S. government did with MP Materials ( MP )

to diversify the supply chain from China, Energy and Natural

Resources Minister Tim Hodgson told Reuters on Tuesday.

The key target, Hodgson said, would be minerals that are

under China's export restriction, which is challenging the

production of important types of mineral products in G7 and NATO

countries.