Chinese firms must sell stakes in Canadian miners

Abstract

The Canadian government is ordering some Chinese firms to sell their stakes in three small Canadian lithium miners, arguing that the investments pose a threat to national security. Sinomine (Hong Kong) Rare Metals Resources must sell its shares in Power Metals; Chengze Lithium International must divest from Lithium Chile; and Zangge Mining Investment must sell its ownership in Ultra Lithium. Other Chinese investments have passed Canadian government scrutiny in recent years. In February of this year, Zijin Mining Group acquired the Canadian firm Neo Lithium. And in 2018, Canadian fertilizer giant Nutrien sold its 24% stake in Chile’s SQM to China’s Tianqi Lithium. Canada is developing a critical minerals strategy to help it play a larger role in the battery supply chain. But Howard Klein, president of the lithium advisory firm RK Equity, calls the government’s recent decision counterproductive. He’d rather see funding for Canadian mining projects. “There are sticks