Canada Miners Test Gray Area of Anti-China M&A Rules (1)

Nearly two years after Canada moved to restrict foreign investment in the country’s mining sector, minerals explorers and developers are testing the limits of those rules.

The Canadian government cracked down on mining deals involving foreign state-owned entities in 2022 in a move widely seen as targeting China’s influence in the global critical minerals supply chain, but which threatens to deprive smaller miners and developers of a key source of financing. However, restrictions have stopped short of prescribing specific levels of foreign investment that will be allowed.

Mining firms are now pushing the boundaries in an attempt to establish ...