Chinese Purchase of Arctic Gold Miner Draws Fire From Canadian Politicians
What’s new: Members of the opposition and former government officials are calling on the government of Canadian Prime Minister Justin Trudeau to block the sale of an Arctic gold miner to a Chinese buyer, the Wall Street Journal reported.
The deal is still pending review in Ottawa, but if approved would see Shandong Gold Mining Co. Ltd. purchase an operation nearly 120 miles (192 kilometers) north of the Arctic Circle from Canadian firm TMAC Resources Inc.
“This purchase should not go forward,” Richard Fadden, who was national security adviser to both Trudeau and former Canadian Prime Minister Stephen Harper, was quoted by the Journal as saying, citing an adversarial relationship.
What’s the background: The deal was first announced in May, with Shandong Gold offering about $150 million for the Canadian gold miner. At this stage the deal has been approved by TMAC shareholders and Chinese regulators.
China is a major buyer of global natural resource assets, similar to many other major Western firms that often purchase rights to develop such mineral and energy resources outside their home markets.
But purchases by Chinese firms sometimes draw more attention than similar deals by companies from other countries, mostly because such Chinese buyers are state-owned and have strong government ties. Accordingly, foreign governments sometimes worry such deals could give Chinese government entities control over their natural resources.
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