China’s Zijin vows to keep investing in Canadian mining despite crackdown
Zijin Mining Group, China’s most valuable mining company, says it won’t be deterred by the Canadian government’s measures to limit foreign involvement in its mining sector.
The Chinese gold and copper producer will “absolutely” continue to seek out investments in Canadian mining companies — especially junior exploration firms, Zijin vice president Shaoyang Shen said in a Tuesday interview at Denver Gold Group’s annual conference in Colorado.
“Canada has some of the best mineral exploration companies in the world,” he said. “As world leaders, I believe it’s in our best interests to work together.”
Canadian Prime Minister Justin Trudeau’s government has sought to restrict mining deals involving foreign state-owned entities for nearly two years in efforts widely seen as targeting China’s dominance in the global critical minerals supply chain. A series of rules and restrictions hasn’t stopped junior mining firms based in Canada from seeking out Chinese capital to back expensive and risky projects passed over by Canadian investors.
Zijin, one of China’s most acquisitive metals groups, has repeatedly clashed with Canada’s government over mining deals. The firm failed to buy a 15% stake in Vancouver-based Solaris Resources Inc. earlier this year after facing a lengthy regulatory review. The state-owned firm also challenged a government review of its plan to buy a Peruvian gold mine from Pan American Silver.
China’s investments have provided capital to small mining firms when critical minerals have become an essential element in the transition away from fossil fuels. Metals including lithium, copper, nickel and cobalt are key components of electric vehicles, solar panels and wind turbines, and countries including Canada and the US are pushing to build supply chains to reduce China’s dominance in the industry.
Shen’s comments echo sentiments expressed in March by China’s ambassador to Canada, who called Trudeau’s crackdown on foreign investment in mining “unfortunate” and “wrong.”
“It is our view — and I think most of our peers here agree — that market-based transactions without political interference have benefited all parties and contributed to better projects for resource development,” Shen said.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation