The Canadian government announced changes to the investment act today tightening rules around investments by foreign countries in critical metal projects.
Investments must show a net benefit, according to the government's guidance.
"Canada must build strategic resilience in the North American critical minerals supply chain with like-minded partners at home, within North America, and around the world," wrote Innovation, Science and Economic Development Canada in a news release.
"Starting today, significant transactions by foreign state-owned enterprises in Canada's critical minerals sectors will only be approved as of likely net benefit on an exceptional basis. As well, should a foreign state-owned company participate in these types of transactions, it could constitute reasonable grounds to believe that the investment could be injurious to Canada's national security, regardless of the value of the transaction."
In 2020 the Canadian government rejected a Chinese company's purchase of TMAC Resources' Hope Bay gold mining project in Nunavut. Purchase price was $230 million. The deal was already approved by TMAC shareholders.
According to reporting by CBC, a spokesperson for Innovation, Science and Economic Development Canada commented on the TMAC deal and wrote that "all foreign investments are subject to national security review. Reviews are conducted on a case-by-case basis as part of a rigorous and evidence-based process. Due to the confidentiality provisions of the Investment Canada Act, the government cannot comment further."
Agnico Eagle eventually bought the project.
