TSX slams Canada over Chinese lithium divestment order – by Harry Dempsey (Financial Times – January 2023)


Intervention risks risked harming free flow of capital on which mining companies rely

The Toronto Stock Exchange has called on Canada’s government to do more to replace lost capital after Ottawa ordered three Chinese companies to divest their stakes in Canadian producers of critical minerals.

Dean McPherson, head of business development for mining at TSX’s operator TMX Group Inc., said the intervention by Justin Trudeau’s government risked harming the free flow of capital on which mining companies rely to explore and develop resources.

“Keeping out the capital flow from China only on the basis of a critical minerals strategy is concerning,” he told the Financial Times. “We think it’s important for them to come up with ways to replace that capital — you can’t say ‘you can’t have that capital but we’re not going to do any program to put funds into those companies.’”

In November, Ottawa ratcheted up tensions with Beijing by demanding three Chinese companies sell their stakes in junior miners Ultra Lithium Inc., Lithium Chile Inc. and Power Metals Corp., following a review that concluded the investments posed a national security threat.

For the rest of this article: https://www.ft.com/content/979f1bdc-4524-4111-be45-87d484156eb0