• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 7 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 5 days Energy Armageddon
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 16 hours "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 23 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 20 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 23 hours The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days Сryptocurrency predictions
  • 2 days Goldman Betting on Cryptocurrencies
  • 10 days Putin and Xi Bet on the Global South
Are Nickel Prices Poised For A Breakout?

Are Nickel Prices Poised For A Breakout?

Nickel prices haven’t seen much…

Could Copper Prices Be Poised For A Breakout?

Could Copper Prices Be Poised For A Breakout?

While copper prices have slid…

Ag Metal Miner

Ag Metal Miner

MetalMiner is the largest metals-related media site in the US according to third party ranking sites. With a preemptive global perspective on the issues, trends,…

More Info

Premium Content

Canada Shakes Up Metals Market With New Foreign Investment Rule

  • Canada has requested that China immediately sell its holdings in three Canadian mining companies.
  • Canada’s new foreign investment rule aims to secure the country’s battery metal security, citing national security concerns.
  • China currently sits atop the largest stockpile of critical minerals in the world.

Via AG Metal Miner

  Canada has a new foreign investment rule that is sure to send ripples through the mineral and metal mining sector. Indeed, the country recently requested that China immediately sell its holdings in three Canadian mining companies. According to media reports, national security is the primary reason for the new order. Indeed, the decision followed a “multi-step” review of Canadian security by the country’s intelligence agencies.

Three Major Metal Mining Companies Affected

Canada’s Industry Minister, François-Philippe Champagne, said three Chinese companies would be required to divest from junior mining companies. According to the new directive, Sinomine (Hong Kong) Rare Metals Resources Co Ltd, Chengze Lithium International Ltd, and Zangge Mining Investment (Chengdu) Co Ltd must sell their stakes in Power Metals Corp, Lithium Chile Inc, and Ultra Lithium Inc.

Despite the move, Canada insists it will continue to welcome overseas ventures. However, the country plans to change its approach to reviewing such foreign investment. According to officials, the focus going forward will be on potential national security concerns.

The Minister of Innovation, Science, and Industry (ISI) spelled out the policy evolution in an early November statement. Of course, the crux of the message focused on asking investors to divest from the three junior Canadian exploration companies. But the Minister also underlined how the Government was determined to work with Canadian businesses to attract FDI. Specifically, they want to attract foreign direct investment from partners that share the country’s interests and values.

China Still Dominates Critical Mineral and Metal Mining

Again, all of this stems from a recent review performed by Canadian intelligence. The report simply stated the three companies needed to leave the Canadian metal mining industry on national security grounds. As is typical with such decisions, the “dirty details” were not made public.  

Related: What Does Russia’s Kherson Retreat Mean For The War In Ukraine?

China sits atop the largest stockpile of critical minerals in the world. Moreover, it has become the world’s largest refiner and processor of many elements crucial to modern manufacturing. The country also has massive, largely undeveloped deposits of both nickel and cobalt.

The term “critical minerals” typically refers to lithium, cadmium, nickel, and cobalt. These elements are integral to clean energy technologies, electric cars, solar panels, and rechargeable batteries.

Re-Prioritizing National Security May Be a New Trend

Canada’s policy shift resulted from a parliamentary committee that took place in March. The new rule envisages a full security review for every investment by a company influenced by an “authoritarian state.”

Of course, Canada is not the only country to put national security before business. Earlier this year, countries including Britain, the US, and Australia established a global partnership to secure access to critical minerals.

China has so far dubbed Canada’s move a “breach of cooperation” between the two nations. To Beijing, Canada seeks to intentionally disrupt global supply chains. One Chinese foreign ministry spokesman said that Canada must stop this targeting of Chinese companies and prove a fair, impartial, and non-discriminatory business environment.

By Sohrab Darabshaw

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News