Canada has announced stringent conditions on mergers and acquisitions involving critical mineral producers. The move, unveiled by Industry Minister Francois-Philippe Champagne, underscores the country’s intent to protect its strategic mining sector. The strict guidelines come into effect with the approval of Glencore’s $6.93 billion acquisition of Teck Resources’ steelmaking coal business. With 31 minerals, including copper, lithium, and nickel, designated as critical due to their use in modern technology and the energy transition, Champagne stressed that future deals would only be approved under exceptional circumstances. The announcement highlights Canada’s resolve to enforce the Investment Canada Act diligently, ensuring that any foreign investments meet the requirement of providing a ‘net benefit’ to the country. Given the country’s significant copper production, this indicates increased scrutiny on foreign investments in this sector.

Mining, Energy, Mergers & Acquisitions,Canada