Canadian Critical Minerals Companies and China
Ucore Rare Metals Inc is among several Canadian critical minerals companies navigating complex waters due to increasing scrutiny from federal authorities on deals with Chinese investors. The company is potentially impacted by the federal government’s stance on acquisitions involving Chinese state-owned enterprises.
National Security Reviews and Restrictions
The Canadian government, under Industry Minister Francois-Philippe Champagne, has emphasized restricting acquisitions of critical minerals companies by Chinese state-owned entities, except under exceptional circumstances. This move aims to protect national security interests and maintain control over valuable natural resources.
Vital Metals’ Proposed Deal with Chinese Firm
Vital Metals, a partner of Ucore Rare Metals and owner of Canada’s only operating rare earths mine, Nechalacho in the Northwest Territories, announced a proposal to sell a significant stake to a China-based company, Shenghe Resources. This deal, despite Vital Metals being Australian-based, falls under Ottawa’s jurisdiction for national security review.