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Chinese mining firm files judicial review against Ottawa
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Chinese mining firm files judicial review against Ottawa
Aug 11, 2024 12:53 PM

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".

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