(Ottawa) The federal government is limiting the participation of foreign state-owned companies in Canada’s critical minerals sector.
Posted at 4:28 p.m.
Industry Minister Francois-Philippe Champagne and Natural Resources Minister Jonathan Wilkinson say critical minerals are key to the country’s prosperity and security.
They announced Friday that Ottawa is rolling out new rules that will make it harder for companies owned or operated by foreign governments to buy or invest in the industry.
PHOTO ADRIAN WYLD, THE CANADIAN PRESS ARCHIVES
Federal Minister of Natural Resources Jonathan Wilkinson, during question period on October 18
The new rules come amid a global rush to secure critical minerals, many of which are vital to electronics like semiconductors, batteries and electric vehicle motors.
The rules also coincide with growing tensions with China, which has bought or invested in Canadian mines and other natural resources.
The federal government is expected to finalize its Critical 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.
Minister Champagne said Friday to provide additional guidance on the application of the Investment Canada Act for cases relating to critical minerals and their supply chains.
“Effective today, major transactions proposed by foreign state-owned enterprises affecting Canada’s critical mineral sectors will be approved as being of net benefit to Canada only on an exceptional basis,” it read. in the press release from the Ministry of Innovation.
“Furthermore, if a foreign state-owned enterprise were involved in this type of transaction, it could constitute a reasonable ground to believe that the investment is likely to harm the national security of Canada, regardless of the value of the transaction. “, we add.