Canada’s national security screening net is cast very broadly – by Laura Rowe (Northern Miner – January 25, 2021)

Global mining news

In December the Government of Canada blocked Chinese state-owned Shandong Gold Mining Co. Ltd. from purchasing TMAC Resources and its Hope Bay gold mine in Nunavut.

The proposed $230 million dollar investment was blocked by the government on national security grounds following a review under the Investment Canada Act (ICA).

The government did not provide specific reasons for its decision (which is typical in reviews under the ICA, especially when national security is involved) and only noted that reviews are conducted on a case by case basis.

Nevertheless, it is widely understood that the Government, acting on the recommendations of its security experts, was not comfortable with the Chinese state having indirect ownership over mining and infrastructure assets in the increasingly strategic Arctic region.

The Shandong case continues a recent trend of heightened scrutiny over potentially sensitive investments, which has been amplified during the Covid-19 pandemic.

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