September 15, 2021
The magazine ran “Critical minerals: A new focus on foreign investment review”, which discusses the Canadian Government’s suggestion that it will use national security powers to scrutinize foreign investments in businesses involved in critical mineral production and supply chains. A small excerpt of the piece is below:
The vast majority of mining investments will continue to receive ordinary course approvals under the [Investment Canada Act]. However, this new policy highlights that some investments are likely to face significant scrutiny.
The highest-risk investments will involve proposed Chinese acquisitions of Canadian mining companies involved in the production of critical minerals in Canada.
Lower-risk investments will involve proposed Chinese acquisitions of Canadian-listed mining companies not involved in critical minerals, where their assets are located outside Canada, and/or where target businesses are not material producers of critical minerals.
Non-Chinese investors should generally expect approvals to be processed in the ordinary course. Indeed, an added consequence of a more restrictive policy on Chinese investments will likely be opportunities for non-Chinese investors and possibly in the development of new and existing mineral projects in Canada.
This piece was originally published as a part of the Q3 Torys Quarterly. This issue of the Quarterly focusses on cross-border business.