OTTAWA, (Reuters) – Canada’s government ordered three Chinese firms yesterday to divest their investments in Canadian critical minerals companies on grounds of national security.
The three firms ordered to divest their investments are Sinomine (Hong Kong) Rare Metals Resources Co Ltd, Chengze Lithium International Ltd, also based in Hong Kong, and Zangge Mining Investment (Chengdu) Co Ltd.
The government ordered the divestiture after a “rigorous scrutiny” of foreign firms by Canada’s national security and intelligence community, Industry Minister Francois-Philippe Champagne said in a statement.
Sinomine was asked sell its investment in Power Metals Corp PWM.V, Chengze Lithium asked to divest itself of its investment in Lithium Chile Inc LITH.V and Zangge Mining is required to exit from Ultra Lithium Inc ULT.V, according to the statement.
“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad,” Champagne said.
