AP

Canada orders Chinese companies to sell lithium assets

Nov 2, 2022, 1:38 PM | Updated: Nov 3, 2022, 2:21 am

OTTAWA, Ontario (AP) — Three Chinese companies have been ordered to sell lithium mining assets in Canada after the country’s government imposed limits on foreign involvement in supplying “critical minerals” used in batteries and high-tech products.

The order Wednesday comes as tensions between the West and China mount over control of sources of lithium, rare earths, cadmium and other minerals used in mobile phones, wind turbines, solar cells, electric cars and other emerging technologies.

Chinese miners are investing in production in Africa, Latin America, Canada and elsewhere as the ruling Communist Party encourages development of electric car, clean energy and other tech industries.

Innovation Minister Francois-Philippe Champagne last week announced curbs on involvement of foreign state-owned companies in producing “critical minerals.” He said investment of any size would be approved only on an “exceptional basis.”

The Chinese government criticized the order as a violation of market principles and called on Canada to reverse its decision.

“Canada stretched the concept of national security and placed barriers to normal investment and trade cooperation between Chinese and Canadian companies,” said a foreign ministry spokesman, Zhao Lijian. “We urge Canada to stop the undue suppression of Chinese companies and instead provide a fair, just and non-discriminatory environment for their operation.”

Western governments want industrial supply chains controlled by allies following Russia’s attack on Ukraine, which disrupted global oil and gas markets, and tension with China, which produces most of the world’s rare earths.

Sinomine (Hong Kong) Rare Metals Resources was ordered to sell its stake in Power Metals Corp., based in Vancouver, which has exploration projects for lithium, cesium and tantalum in northern Ontario.

Chengze Lithium International Ltd. is required to divest its interests in Lithium Chile Inc., a company in Calgary with lithium projects underway in Chile. Zangge Mining Investment was ordered to sell its stake in Ultra Lithium Inc. of Vancouver, which has lithium and gold projects in Canada and Argentina.

Canada welcomes foreign investment but “will act decisively when investments threaten our national security and our critical minerals supply chains,” Champagne said in a statement.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

moore redmond washington...

Associated Press

U.S. Supreme Court rules against Redmond couple challenging foreign income tax

The court ruled in the case of Charles and Kathleen Moore, of Redmond, Washington after they previously challenged a $15,000 tax bill.

14 hours ago

Image:The New York Giants' Willie Mays poses for a photo during baseball spring training in 1972. M...

Associated Press

Willie Mays, Giants’ electrifying ‘Say Hey Kid,’ dies at 93

Willie Mays, whose singular combination of talent, drive and exuberance made him one of baseball’s greatest players, has died. He was 93.

2 days ago

Image: This photo provided by the Washington Department of Ecology shows a derailed BNSF train on t...

Associated Press

Judge orders BNSF to pay Washington tribe nearly $400M for trespassing with oil trains

BNSF Railway must pay the sum to a Native American tribe in Washington after it ran 100-car trains with crude oil on the tribe's reservation.

3 days ago

Photo: In this photo provided by Tieanna Joseph Cade, an amusement park ride is shown stuck with 30...

Associated Press

Crews rescue 28 people trapped upside down high on Oregon amusement park ride

Emergency crews in Oregon rescued 28 people after they were stuck dangling upside down high on a ride at a century-old amusement park.

3 days ago

juneteenth shooting texas...

Associated Press

2 killed and 6 wounded in shooting during a Juneteenth celebration in a Texas park

A shooting in a Texas park left two people dead and six wounded, including two children, on Saturday, authorities said.

4 days ago

Photo: Israeli soldiers drive a tank near the Israeli-Gaza border, in southern Israel, Wednesday, J...

Jack Jeffery, The Associated Press

8 Israeli soldiers killed in southern Gaza in deadliest attack on Israeli forces in months

An explosion in Gaza killed eight Israeli soldiers, the military said Saturday, making it the deadliest attack on Israeli forces in months.

5 days ago

Canada orders Chinese companies to sell lithium assets