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Jinteng Mining, a subsidiary of Chinese gold and copper company Zijin Mining Group, has sought a judicial review against Canada’s decision regarding a Canadian company’s sale of a gold mine in Peru, the Canadian Press reported on Sunday.
Jinteng bought Pan American Silver Corp’s gold asset in Peru in May for $245 million with an option of additional payment of $50 million. The Canadian Press reported that the judicial review was against Minister Francois-Philippe Champagne’s order seeking a national security review for the deal, which Reuters was unable to independently verify.
A case filed in the Federal Court of Canada which was viewed by Reuters showed that Jinteng (Singapore) Mining filed a judicial review in late July under section 18.1 of the Federal Courts Act naming the Attorney General of Canada and the Minister of Innovation Science and Industry as parties to the case.
Jinteng is represented by law firm Gowling WLG LLP, according to court documents.
The law firm representing Jinteng and Canada’s industry minister’s office did not respond to email queries.
Section 18.1 under Canadian law provides a legal recourse for any party affected by a federal order, allowing them to seek a review within 30 days after the decision.
The judicial review by Zijin could be a test case on how other Canadian companies approach their deal making with regards to Chinese investments.
Ottawa has taken a tough stance against investments by state-owned Chinese companies in Canada’s critical minerals sector.
Since 2022 Canada has asked Chinese investors in Canadian graphite, lithium and copper company to divest their holding even though the mining assets of these companies were outside of Canada, due to national security issues. But Chinese investors have continued their interest in Canadian mining companies.
The Canadian government has identified 31 minerals, including copper, lithium and nickel, that it considers critical for their strategic uses in modern technology and the energy transition, such as in electric vehicle batteries. Gold is not considered a critical mineral.
In July, the country’s industry minister Francois-Philippe Champagne said the country will have a high bar for approving large M&A deals in critical minerals and said any deals involving major Canadian miners will be approved “under exceptional circumstances”.
(By Divya Rajagopal; Editing by Josie Kao)
Comments
Trevor Holness
Why was this transaction reviewed in the first place? It is a gold mine and gold is not a critical mineral.