https://www.miningweekly.com

Canada says it saw no need to block China firm's bid for lithium miner

28th January 2022

By: Reuters

  

Font size: - +

OTTAWA – Canada did not stop a Chinese firm's bid for a Toronto-listed lithium miner because it saw no risk to national security, Innovation Minister Francois-Philippe Champagne said on Thursday.

The opposition Conservatives said the Liberal government should have blocked Zijin Mining Group from buying Neo Lithium for C$918.7-million ($721.3-million) last year.

The Conservatives say the decision to permit the purchase makes no sense at a time when Washington is working with Canada to boost regional supply chains of critical minerals to counter China's dominance.

Although Neo Lithium is listed on the Toronto exchange, its operation consists of a proposed mine in Argentina, where most of its employees are based.

"There was sufficient information to make a determination ... that no national security harm could arise as a result of this transaction," Champagne told the House of Commons industry committee.

Neo Lithium's reserves are comprised of lithium carbonate whereas electric vehicle battery producers prefer lithium hydroxide, he added.

Last March, Canada tightened foreign investment rules to protect the security of supply chains ahead of an expected surge in demand for metals used to make electric vehicles.

Edited by Reuters

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION