The minister of industry and mineral resources said he expects Saudi’s state-backed funds to buy stakes in Canadian metals businesses as the Middle Eastern kingdom expands its influence in the global mining industry. Canada’s rules targeting certain foreign investors won’t get in the way, he said.
Canada’s federal government introduced new rules in 2022 that added a layer of regulatory scrutiny to investments by foreign state-owned entities. Such deals will only be approved “on an exceptional basis” if they’re considered a net benefit to Canada.
The tougher stance has thwarted some efforts by Chinese state-backed firms to invest in Canadian companies, though it didn’t prevent two Saudi entities from buying a 10% stake in Vale SA’s base metals unit, which operates Canada’s largest nickel mines.
Saudi Arabia has sought to expand its access to critical minerals as the global energy transition accelerates,…
