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Legislative Assembly of Ontario at Queens Park, Toronto. Credit: Andrés García/Adobe Stock

Chinese Mineral Companies to Divest from Canada

On November 2, Canada's industry and commerce regulator, Innovation, Science and Economic Development Canada (ISED), ordered three Chinese companies to divest their investments in Canada's critical mineral sector, primarily lithium.

The Investment Canada Act (ICA) sets out the multi-step national security review process for inbound foreign investment into sensitive industries. The three Chinese companies reviewed under the ICA are: Sinomine (Hong Kong) Rare Metals Resources Co., Limited, Chengze Lithium International Limited, and Zangge Mining Investment (Chengdu) Co., Ltd. In a statement, François-Philippe Champagne, Canada's Minister of Innovation, Science and Industry, emphasized that the government "will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad." He further adds that foreign investments are subject to review for national security concerns, and certain types of investment—such as those in the critical minerals sectors—receive enhanced scrutiny.