Mining firms are now pushing the boundaries in an attempt to establish where the limits lie. At least nine mining deals involving Chinese firms have been proposed since Canada’s new measures, and investment bankers and corporate development teams say they are closely watching how the government responds to some of these test deals, as a basis for future transactions.
The continued push to attract Chinese capital despite Canada’s scrutiny is a reflection of the challenges facing the world’s mineral explorers and mine-builders, many of which are headquartered in Canada. Junior miners struggle to draw domestic investors for expensive and risky projects that can take years, if not decades, to complete. Chinese firms, which can take a longer, strategic view on raw material investments, have long been an important funding source for the sector.
“Given how broadly the government is interpreting its mandate here, there’s…
