Canada tightens foreign investment rules to protect security of critical mineral supply chains
- Canada earlier this month published a list of 31 minerals deemed critical to its economy, among them aluminium, cobalt, copper and nickel
- Canada recently rejected Shandong Gold’s bid for Arctic miner TMAC Resources on national security grounds
Canada has tightened foreign investment rules to protect the security of critical mineral supply chains, a government official said on Thursday, ahead of an expected surge in demand for metals used to make electric vehicles.
The move comes as the US government works with Canada to boost regional supply chains to counter China’s dominance in the sector.
The updated guidelines mean proposed takeovers of companies specialising in critical minerals and sensitive personal data, as well as investments by “state-owned or state-influenced investors”, could trigger a national security review.
“Our government has updated these guidelines to provide increased certainty for Canadian businesses and investors,” said John Power, spokesman for Minister of Innovation, Science and Industry François-Philippe Champagne.
“This update specifically addresses national security concerns relating to investments involving potentially sensitive technologies, sensitive personal data and the security of critical mineral supply chains.”
Canada earlier this month published a list of 31 minerals deemed critical to its economy, among them aluminium, cobalt, copper and nickel.