China’s huge Shandong Gold Mining Corporation is proposing to buy Canada’s TMAC resources mine in the Arctic.
Currently under review by the federal government, the $207.4 million dollar offer raises concerns not only over China’s increasing control over the precious metal and other strategic resources but also concerns of sovereignty and of potential security in the Arctic.
Chinese companies have been acquiring other gold producers around the world, and the state owned Shandong Gold Group is part of a national effort to stockpile gold as a hedge against economic volatility.
China has also been engaged in an effort to control rare earth minerals and already owns copper and zinc assets in Canada’s Nunavut territory. Zinc is an important element in the making of galvanized steel as well as use in computers, mobile phones and other electronic equipment, and in batteries.
In an email to RCI, former Canadian diplomat to Hong Kong and the U.N, Colin Robertson noted that Canada should be asking of this latest potential purchase:
-Is this is a state-owned enterprise enjoying benefits not available to other companies?
-Is this a strategic commodity?
-What are the net benefits to Canada- local employment, trade, infrastructure, regional and local development et al
-Would Canadian companies be able to buy a similar Chinese company ie reciprocal treatment
For the rest of this article: https://www.rcinet.ca/en/2020/08/10/chinas-effort-to-buy-an-arctic-gold-mine-raises-many-concerns/