The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, and the Honourable Jonathan Wilkinson, Minister of Natural Resources, issued the following statement regarding updated guidelines for foreign investments from state-owned enterprises in critical minerals sectors:

“Critical minerals are essential to powering the green, digital economy of tomorrow. Increasing demand and constrained supply of these all-important minerals are presenting Canada with a generational economic opportunity, and the Government of Canada is committed to seizing that opportunity while delivering on its ambitious climate goals.

“That is why Canada must build strategic resilience in the North American critical minerals supply chain with like-minded partners at home, within North America, and around the world.

“While we continue to welcome foreign direct investment that supports this goal, Canada will act decisively when investments threaten our national security and our critical minerals supply chains. To this end, Minister Champagne is providing additional direction with regard to the application of the Investment Canada Act in cases involving critical minerals and critical minerals supply chains.

“Starting today, significant transactions by foreign state-owned enterprises in Canada’s critical minerals sectors will only be approved as of likely net benefit on an exceptional basis. As well, should a foreign state-owned company participate in these types of transactions, it could constitute reasonable grounds to believe that the investment could be injurious to Canada’s national security, regardless of the value of the transaction.

“The federal government is determined to work with Canadian businesses to attract foreign direct investments from partners that share our interests and values. Canada’s critical minerals are key to the future prosperity of our country. We will continue to encourage and work with Canadian businesses that  require investment capital, by helping to identify and find partnerships that will serve in the best interest of Canadian businesses, workers, and the economy.

“Today’s direction comes as the Government of Canada finalizes its Critical Minerals Strategy, which will position Canada as the global supplier of choice for critical minerals.