Ottawa has announced stricter guidelines on foreign investments in Canada’s mining sector, particularly for firms involved in critical minerals operations. The move comes amid rising concerns over the sector’s national security implications stemming from such investments.
“Canada welcomes foreign investment and recognizes how important it is, particularly for small Canadian firms to advance exploration and site development efforts. In this light, the Government must balance protecting Canada’s strategic interests while supporting the development of Canada’s resources,” Mr. Champagne stated.
Mr. Champagne said that the government has now approved the deal after an extensive net benefit review and under strict conditions. Glencore has committed to maintaining a robust Canadian operation for EVR, pledging to establish a Vancouver-based head office and regional offices in Calgary and Sparwood for at least 10 years.
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It has also committed to ensuring that a majority of EVR’s directors are Canadian, and that two-thirds of executive and senior management roles are filled by Canadians over the same period. Additionally, Glencore will maintain substantial employment levels at EVR for a minimum of five years.
Geopolitical Competition
In his July 4 statement, Mr. Champagne emphasized the role of critical minerals in national defence and technological development, particularly in the context of geopolitical competition.
“Foreign capital will continue to play an important role in our industry. However, Canadians cannot ignore that we are in a world of geopolitical competition, with critical minerals at the very core of advanced industrial and defence policies,” he said.
The Epoch Times reached out to the Innovation Ministry for clarification on the specific concerns related to geopolitical competition, but did not receive a response by the time of publication.
Critical minerals such as lithium and rare earth elements are essential for high-tech industries and defence applications, making them strategically vital. Foreign investments, particularly from countries like China, have raised concerns about Canadian sovereignty and the control of these crucial resources.
This acquisition bolstered China molybdenum’s position in the global copper-cobalt market, critical for industries ranging from electronics to renewable energy.
Earlier transactions include Jiangxi Copper Corporation’s acquisition of minority stakes in First Quantum Minerals Ltd., a Canadian-based mining and metals company, in 2017. This move provided Jiangxi Copper with access to valuable copper assets, supporting China’s industrial needs and global supply chain strategies.
Going further back to 2010, Jilin Jien Nickel Industry Co. Ltd., a Chinese firm, acquired a majority stake in Canadian Royalties Inc. This acquisition enabled Jilin Jien to enter Canada’s nickel mining sector, gaining access to resources crucial for stainless steel production and industrial applications.
