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Canada kicks Chinese firms out of rare minerals sector

The companies have been ordered to divest their interests in the country’s strategic mines immediately

The Canadian government has ordered three Chinese firms to divest from its critical minerals companies on grounds of national security. The move comes days after Ottawa introduced tougher rules on foreign investment in the mining sector.

According to media reports on Wednesday, the three Chinese firms are Sinomine Rare Metals Resources, Chengze Lithium International, and Zangge Mining Investment.

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

“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 sector from foreign state-owned companies.

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Ending China’s rare-earths dominance a ‘pipe dream’ – official

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

Canada has large deposits of critical minerals like nickel and cobalt, demand for which is expected to expand significantly in the coming decades.

Earlier this year, Canada, the US, the UK, and several other countries set up a new partnership to secure critical minerals’ supply amid rising demand.

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https://ift.tt/MOec7un 03, 2022 at 09:21PM
from RT – Daily news

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