TORONTO, Aug 11 (Reuters) - Jinteng Mining, a subsidiary
of Chinese gold and copper company Zijin Mining Group
, has sought a judicial review against Canada's
decision regarding a Canadian company's sale of a gold mine in
Peru, the Canadian Press reported on Sunday.
Jinteng bought Pan American Silver Corp's ( PAAS ) gold
asset in Peru in May for $245 million with an option of
additional payment of $50 million. The Canadian Press reported
that the judicial review was against Minister Francois-Philippe
Champagne's order seeking a national security review for the
deal, which Reuters was unable to independently verify.
A case filed in the Federal Court of Canada which was viewed
by Reuters showed that Jinteng (Singapore) Mining filed a
judicial review in late July under section 18.1 of the Federal
Courts Act naming the Attorney General of Canada and the
Minister of Innovation Science and Industry as parties to the
case.
Jinteng is represented by law firm Gowling WLG LLP,
according to court documents.
The law firm representing Jinteng and Canada's industry
minister's office did not respond to email queries.
Section 18.1 under Canadian law provides a legal recourse
for any party affected by a federal order, allowing them to seek
a review within 30 days after the decision.
The judicial review by Zijin could be a test case on how
other Canadian companies approach their deal making with regards
to Chinese investments.
Ottawa has taken a tough stance against investments by
state-owned Chinese companies in Canada's critical minerals
sector.
Since 2022 Canada has asked Chinese investors in Canadian
graphite, lithium and copper company to divest their holding
even though the mining assets of these companies were outside of
Canada, due to national security issues. But Chinese investors
have continued their interest in Canadian mining companies.
The Canadian government has identified 31 minerals,
including copper, lithium and nickel, that it considers critical
for their strategic uses in modern technology and the energy
transition, such as in electric vehicle batteries. Gold is not
considered a critical mineral.
In July, the country's industry minister Francois-Philippe
Champagne said the country will have a high bar for approving
large M&A deals in critical minerals and said any deals
involving major Canadian miners will be approved "under
exceptional circumstances".