As reported by Reuters, in a joint statement Canadian Industry Minister François-Philippe Champagne and Natural Resources Minister Jonathan Wilkinson made it clear that while Canada still wants foreign investment, it’s not giving away the farm – especially not to foreign state-owned companies with eyes on Canada’s cobalt, nickel, and other key minerals.
“Sure, we want investment,” “but only if it helps us build a secure supply chain with our allies. If you’re a foreign state-owned player looking to swoop in with a major deal, don’t be surprised if we say no.”
Starting immediately, any major transactions in Canada’s critical minerals space involving foreign state-owned enterprises (SOEs) will need to clear some very high bars – and that’s if they get approved at all.
So, why the sudden steel spine? I’d say a couple of reasons. To start with, it’s part of the increasing geopolitical strife that is, and will continue to, affect the energy transition, next generation communications and defense tech, and more. Canada is part of a growing alliance with the U.S., UK, and others, all trying to lock down reliable supplies of critical minerals and, with China already in an incredibly dominant position when it comes to nickel, lithium, cobalt, and a host of others, the West is trying to wall off key areas.
With some notable exceptions, Canada has not exactly excelled at exploiting its critical mineral resources in recent years. The government has talked a big game in the last year or so but in terms of hard dollars and streamlined permitting, actual results are at best mixed. Still, warning off SOEs does by the country some time to get domestic production flying. Let’s see if they make the most of it.
Anthony Milewski Chairman, Nickel 28 Capital
