Canada Raises Threshold for Allowing Foreign Investments in Critical Minerals Sector

Ottawa has announced stricter guidelines on foreign investments in Canada’s mining sector, particularly for firms involved in critical minerals operations. The move comes amid rising concerns over the sector’s national security implications stemming from such investments. In a July 4 statement, Innovation Minister François-Philippe Champagne announced that, moving forward, proposed foreign investments will only be deemed to have a net benefit “in the most exceptional of circumstances.” He said that setting this “high bar” reflects the strategic importance of Canada’s critical minerals sector and the government’s commitment to its protection. Under the Investment Canada Act, “net benefit” reviews are conducted to assess the economic benefit of foreign investments to the country. To determine whether a proposed foreign investment provides a net benefit to Canada, several key factors are reviewed, including its impact on economic activity such as job creation, innovation, and the use of Canadian products and services, according to the Department of Innovation....