Jinteng Mining, a subsidiary of Zijin Mining Group, has initiated a judicial review against the Canadian government’s decision regarding the sale of a gold mine in Peru. The review targets the order from Minister Francois-Philippe Champagne, which called for a national security review of Jinteng’s acquisition of Pan American Silver Corp’s gold asset for $245 million, with an additional payment option of $50 million.
The case was filed in the Federal Court of Canada in late July, naming the Attorney General of Canada and the Minister of Innovation, Science and Industry as parties involved. Jinteng is represented by Gowling WLG LLP.
Under Canadian law, specifically section 18.1 of the Federal Courts Act, parties affected by federal orders can seek a review within 30 days of the decision. This judicial review could set a precedent for how Canadian companies navigate future deals with Chinese investors, particularly in the context of national security concerns.
Since 2022, Canada has adopted a stringent approach towards investments from state-owned Chinese firms in its critical minerals sector, urging divestment from Chinese investors in companies dealing with graphite, lithium, and copper, even if the mining assets are located outside Canada. Despite this, interest from Chinese investors in Canadian mining remains strong.
The Canadian government has identified 31 minerals, including copper, lithium, and nickel, as critical for modern technology and energy transition, although gold is not classified as such. Minister Champagne has indicated that large mergers and acquisitions involving major Canadian miners will face a high threshold for approval, with exceptions being rare.