Government could block projects based on national security reasons. Foreign companies must give advance notice before investing in strategic sectors.
The Canadian Government plans to control foreign investments in key sectors more effectively. In an interview with Bloomberg, Industry Minister Francois-Philippe Champagne said that foreign companies will give advanced notice to the government in Ottawa before taking a stake in fields of strategic importance like critical minerals, space technology, and artificial intelligence. He added that the government could stall or block these investments to conduct a national security review before being presented with a fait accompli.
Canada, rich in natural resources, wants to become a leading producer of critical raw materials and has presented a comprehensive strategy to this end, planning to fast-track permitting phases and build the necessary infrastructure. The North American country’s resource wealth has attracted increased foreign investment in recent years. In 2022, the government announced that it would better protect its domestic resource sector and issued stricter guidelines for investments by foreign state-owned companies. Recent developments, however, such as the Chinese industry giant Shenghe Resources first taking a stake in the ailing Canadian rare earth miner Vital Metals and then buying all of the previously mined material, has highlighted that still lots of Beijing-based money is flowing into the Canadian raw materials sector despite earlier implemented scrutiny measures.
Photo: iStock/Captured by Keeleigh
