After limiting foreign participation in the supply of essential minerals used in the manufacture of batteries and high-tech devices. The Canadian government expelled three Chinese companies. Picture/Document
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The order issued on Wednesday local time comes amid heightened tensions between the West and China over who will control mineral supply such as lithium, rare earths, cadmium and other materials used in the manufacture of solar cells, wind turbines, cell phones, electric cars and other emerging technologies.
As the ruling Communist Party promotes the growth of renewable energy, electric vehicles and other tech industries, Chinese miners are scrambling to invest in manufacturing in Africa, Latin America, Canada and elsewhere.
Innovation Minister Francois-Philippe Champagne this week announced restrictions on the ability of foreign companies to produce key minerals. He warned that any investment will only be accepted if it meets several conditions.
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After the Russian-Ukrainian war that disrupted global oil and gas markets, and the conflict with China, which produces most of the world’s rare earths, Western governments wanted industrial supply chains to be controlled by their allies.
The court ruled that Sinomine (Hong Kong) Rare Metals Resources must sell its stake in Power Metals Corp., a Vancouver-based company that has interests in tantalum, lithium and cesium exploration in northern Ontario.
Chengze Lithium International Ltd. had to sell its stake in Lithium Chile Inc., a Calgary-based company that mines lithium in Chile. Vancouver-based Ultra Lithium Inc., which owns lithium and gold mines in Canada and Argentina, was ordered to sell shares of Zangge Mining Investment.
Champagne said in a statement that Canada welcomes foreign investment. “But we will act decisively when investments threaten our national security and our supply chain of critical minerals,” he stressed.
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