OTTAWA, Nov 2 (Portal) – The Canadian government on Wednesday ordered three Chinese firms to divest their investments in Canadian critical minerals companies on national security grounds.
The three companies that have been asked 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 divestment 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 has been asked to sell its stake in Power Metals Corp (PWM.V), Chengze Lithium has been asked to divest its stake in Lithium Chile Inc (LITH.V), and Zangge Mining has been asked to sell Ultra Lithium Inc (ULT .v) separate. , so the statement.
“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security and our critical mineral supply chains 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 outlines rules designed to protect the country’s critical minerals sectors from foreign state-owned companies.
“The federal government is committed to working with Canadian companies to attract foreign direct investment from partners who share our interests and values,” Champagne said.
Canada has large deposits of critical minerals such as nickel and cobalt that are essential for clean energy and other technologies. Demand for the minerals is expected to increase significantly over the coming decades.
Earlier this year, Canada, the United States, Britain and several other countries formed a new partnership aimed at securing supplies of critical minerals as global demand for them increases.
Reporting by Ismail Shakil in Ottawa Editing by Chris Reese and Sandra Maler
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