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Tongling's Acquisition Could Still Be In Play

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BUSINESS
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Chinese money still chasing Canadian critical mining deals despite Ottawa's scrutiny
 
Divya Rajagopal
Reuters
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Updated Feb. 27, 2024 2:43 p.m. AST
Published Feb. 27, 2024 2:13 p.m. AST
 
TORONTO - 

A year after Canada tightened foreign investment rules for the critical minerals sector, Chinese money has continued to pour into Toronto-listed miners, according to proprietary research conducted by the University of Alberta.
The inbound flow is raising hopes among some junior miners that it will be easier to find Chinese funding.
Canada had forced three Chinese investors to sell their stakes in Canadian critical mineral companies in 2022. Some of these companies did not have their mines in Canada.
 
In October 2022, the government added an extra layer of scrutiny for inbound deals in critical minerals.

The changes did not specify which country's investments would be scrutinized, but the government says it wants to secure the critical minerals sector, which is strategic to Canada's national security.
Still, Canada's critical miners received at least a dozen investments worth $2.2 billion in 2023 from new and existing investors in China and Hong Kong, a huge increase over $62 million in 2022, data compiled by the University of Alberta's The China Institute shows.

"What you are seeing is the reality, that there is no blockade of Chinese investments in Canada... it is a perception issue," said Dean McPherson, head of mining at TMX Group Ltd.

"Chinese investors are not shy to risk, they are willing to stick in and ride it out (in Canada)," McPherson added.