Zijin vows to keep investing in Canadian mining despite crackdown

“Canada has some of the best mineral exploration companies in the world,” he said. “As world leaders, I believe it’s in our best interests to work together.”

Canadian Prime Minister Justin Trudeau’s government has sought to restrict mining deals involving foreign state-owned entities for nearly two years in efforts widely seen as targeting China’s dominance in the global critical minerals supply chain. A series of rules and restrictions hasn’t stopped junior mining firms based in Canada from seeking out Chinese capital to back expensive and risky projects passed over by Canadian investors.

Zijin, one of China’s most acquisitive metals groups, has repeatedly clashed with Canada’s government over mining deals. The firm failed to buy a 15% stake in Vancouver-based Solaris Resources Inc. earlier this year after facing a lengthy regulatory review. The state-owned firm also challenged a government review of its plan to buy a Peruvian gold mine from Pan American Silver Corp.

China’s investments have provided capital to small mining firms when critical minerals have become an essential element in the transition away from fossil fuels. Metals including lithium, copper, nickel and cobalt are key components of electric vehicles, solar panels and wind turbines, and countries including Canada and the US are pushing to build supply chains to reduce China’s dominance in the industry.

Shen’s comments echo sentiments expressed in March by China’s ambassador to Canada, who called Trudeau’s crackdown on foreign investment in mining “unfortunate” and “wrong.”

“It is our view — and I think most of our peers here agree — that market-based transactions without political interference have benefited all parties and contributed to better projects for resource development,” Shen said.

(By Jacob Lorinc)