Canada rejects Shandong Gold’s bid to buy Arctic gold mine

The Canadian governing administration has turned down Shandong Gold Mining’s bid to obtain Canada’s financial debt-saddled TMAC Means, the corporations said, with the Chinese miner including that the sale was blocked on nationwide stability grounds.

As the COVID-19 pandemic has induced economic dislocation, countries from Australia to Canada have enhanced scrutiny on bargains by point out-operate Chinese miners this calendar year.

In a filing to the Shanghai Stock Trade on Tuesday, Shandong Gold, 1 of China’s most important gold miners, mentioned it experienced gained see of a decision by Canadian authorities on Dec. 18 that it should really not commence with the offer.

In its have submitting late on Monday, TMAC also mentioned it been knowledgeable of this sort of an order underneath the Financial investment Canada Act.

Shandong Gold claimed in Might it would shell out C$230 million ($179 million) to receive TMAC, which operates the Doris mine in the Hope Bay region of the northern and strategically essential territory of Nunavut.

Canada in October launched a countrywide safety overview of the proposed acquisition that was prolonged final thirty day period. 

Mineral-wealthy but thinly populated, Nunavut is noticed by Canada as important as retreating sea ice opens up likely new transport routes.

The very last major Chinese acquisition blocked by Canada was a proposed C$1.51 billion takeover of design company Aecon by China Communications Development Co Ltd , also on national protection grounds, in May perhaps 2018.

Bilateral relations have been fraught considering the fact that Canada’s December 2018 arrest of Huawei Technologies Co Ltd Chief Money Officer Meng Wanzhou at the ask for of the United States.

Canadian Key Minister Justin Trudeau has confronted tension from opposition Conservative politicians to toughen the country’s stance on China.

Canada’s office of Innovation, Science and Economic Progress, which oversees overseas financial investment, did not immediately answer to a request for remark.

TMAC did not respond to a question Tuesday. It said Nov. 5 it had about C$99 million in hard cash on hand, brief of the C$169.7 million of personal debt thanks in June.

($1 = 1.2865 Canadian dollars)

(Reporting by Tom Daly extra reporting by Jeff Lewis in Toronto Editing by David Goodman and Barbara Lewis) (([email protected] +86 10 5669 2119))