Ottawa: The Canadian government has directed three Chinese firms to divest from a trio of small lithium miners based in the country.
The move was announced by the government days after introducing tougher rules on foreign investments in the nation’s critical minerals sectors.
François-Philippe Champagne, Minister of Innovation, Science and Industry, said in a 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. In accordance with the ICA, foreign investments are subject to review for national security concerns, and certain types of investment—such as those in the critical minerals sectors—receive enhanced scrutiny.”
“Therefore, we reviewed a number of investments in Canadian companies engaged in the critical minerals sector, including lithium. These companies were reviewed via the multi-step national security review process, which involves rigorous scrutiny by Canada’s national security and intelligence community,” he said.
The Government of Canada has ordered the divestiture of the following investments by foreign investors in Canadian critical mineral companies:
Sinomine (Hong Kong) Rare Metals Resources Co., Limited is required to divest itself of its investment in Power Metals Corp.
Chengze Lithium International Limited is required to divest itself of its investment in Lithium Chile Inc.
Zangge Mining Investment (Chengdu) Co., Ltd. is required to divest itself of its investment in Ultra Lithium Inc.
“The government’s decisions are based on facts and evidence and on the advice of critical minerals subject matter experts, Canada’s security and intelligence community, and other government partners,” the minister said.