Mining

Canada Tells Three Chinese Firms to Quit Critical Mineral Deals

 

Canada has ordered three Chinese firms to sell their investments in Canadian companies focused on critical minerals – on grounds of national security.

The three firms ordered to divest their investments are Sinomine (Hong Kong) Rare Metals Resources Co Ltd, Chengze Lithium International Ltd, also based in Hong Kong, and Zangge Mining Investment (Chengdu) Co Ltd.

The government ordered the divestiture after a “rigorous scrutiny” of foreign firms by Canada‘s national security and intelligence community, Industry Minister Francois-Philippe Champagne said in a statement.

Sinomine was asked sell its investment in Power Metals Corp, Chengze Lithium asked to divest itself of its investment in Lithium Chile Inc and Zangge Mining is required to exit from Ultra Lithium Inc, according to the statement.

“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad,” Champagne said.

Last week, Ottawa said it must build a resilient critical minerals supply chain with like-minded partners, as it outlined rules meant to protect the country’s critical minerals sectors from foreign state-owned companies.

“The federal government is determined to work with Canadian businesses to attract foreign direct investments from partners that share our interests and values,” Champagne said.

Canada has large deposits of critical minerals like nickel and cobalt, which are essential for cleaner energy and other technologies. Demand for the minerals is projected to expand significantly in the coming decades.

Earlier this year, Canada, the United States, Britain and a few other countries established a new partnership aimed at securing the supply of critical minerals as global demand for them rises.

 

  • Reuters with additional editing by Jim Pollard

 

ALSO SEE:

West to Take on China in Race for Africa’s Critical Minerals – SCMP

 

West Can’t Let Russia, China Dominate Vital Minerals – JWN

 

Pentagon Backs US Funding For Strategic Mining in Australia, UK

 

Canada Puts Up Barriers to China Acquiring Mining Companies

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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