Canada restricting foreign state-owned firms from critical mineral industry

The federal government is restricting the involvement of foreign state-owned companies in Canada’s critical minerals sector.

Industry Minister Francois-Philippe Champagne and Natural Resources Minister Jonathan Wilkinson say critical minerals are key to the country’s prosperity and security.

They say that is why Ottawa is rolling out new rules that will make it more difficult for companies owned or operated by foreign governments to buy or invest in the industry.

The new rules come amid a global rush to secure critical minerals, many of which are vital for electronics such as semiconductors, batteries and electric vehicle motors.

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The rules also coincide with growing tensions with China, which has purchased or invested in Canadian mines and other natural resources.

The federal government is developing what it calls a critical minerals strategy, which will seek to position the country as a leader in supplying the resources to industries and countries around the world.