Canada now extends security review of Chinese state firm’s gold mine bid
Ottawa: The Canadian government has extended a national security review of a US$165 million Chinese takeover of a Canadian gold mining company operating in the country’s strategic far north, highlighting the possible dispute between the two nations.
TMAC Resources said on Friday that a federal review of state-owned Shandong Gold Mining’s takeover bid for the struggling miner had been extended for another 45 days, reports South China Morning Post.
If approved, the deal would give Shandong Gold Mining, China’s second-biggest gold producer, full control over TMAC’s sole asset, the Hope Bay gold project, the report said.
Two other Chinese state-owned companies, MMG and Jilin Jien Nickel Industry, already own assets in Canada’s Arctic territories. MMG owns zinc and copper deposits and Jilin Jien operates a mine, the newspaper reported.
The incident occured at a time when the two nations are sharing an all-time low relationship.
The relationship touched a new low following the ongoing extradition case in Canada against Huawei Technologies chief financial officer Meng Wanzhou and the detention in China of Canadian citizens Michael Kovrig and Michael Spavor.
The detentions have soured Canadian perceptions of China, putting pressure on Trudeau’s government to get tough on Beijing, reports South China Morning Post.