Canada orders three Chinese firms to exit critical minerals deals (updated)

Power Metals

02/11/2022 21:42

(Adds details from statement, background)
       OTTAWA, Nov 2 (Reuters) - Canada's government ordered
three Chinese firms on Wednesday to divest their investments in
Canadian critical minerals companies 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
 PWM.V , Chengze Lithium asked to divest itself of its
investment in Lithium Chile Inc  LITH.V  and Zangge Mining is
required to exit from Ultra Lithium Inc  ULT.V , 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. 
 (Reporting by Ismail Shakil in Ottawa
Editing by Chris Reese and Sandra Maler)
 ((ismail.shakil@tr.com;))