Ottawa restricts foreign participation in strategic minerals

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Ottawa restricts foreign participation in strategic minerals

Fran├žois-Philippe Champagne, Minister of Industry, in the House of Commons, in Ottawa, October 27, 2022

The federal government limits the participation of foreign state-owned enterprises in Canada's strategic minerals sector.

Industry Minister Francois-Philippe Champagne and Natural Resources Minister Jonathan Wilkinson say strategic minerals are key to the country's prosperity and security.

They announced on Friday that Ottawa is rolling out new rules that will make it harder for foreign government owned or operated companies to buy or invest in this industry.

The new rules come amid a global rush to secure strategic minerals, many of which are vital to electronics, such as semiconductors, batteries and electric vehicle motors.

< p class="e-p">Although the list differs from state to state, strategic mineralsare normally elements for which there are no substitutes, of which the supply is limited, which are of economic importance and whose extraction and transformation are very restricted. For example, lithium, graphite, nickel, cobalt and copper are generally considered strategic minerals.

The rules also coincide with growing tensions with China, which purchased or invested in Canadian mines and other natural resources.

The federal government is expected to finalize its Strategic Minerals Strategy by the end of the year, which aims to position the country as a leader in supplying resources to industries and countries around the world. whole.

Minister Champagne said Friday to provide additional guidance on the application of the Investment Canada Act to cases relating to strategic minerals and their supply chains. ;supply.

As of today, major transactions proposed by foreign state-owned enterprises affecting Canada's [strategic] minerals sectors will only be approved as being of net benefit to Canada on an exceptional basis, reads the Ministry of Innovation press release.

In addition, if a foreign state-owned enterprise were involved in this type of transaction, it could constitute a m Reasonable reason to believe that the investment is likely to harm the national security of Canada, regardless of the value of the transaction, it adds.

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