Policy Regarding Foreign Investments from State-Owned Enterprises in Critical Minerals under the Investment Canada Act

Last updated: 9 December 2023

In October 2022, the federal government released a new Investment Canada Act (ICA) policy on critical minerals to clarify how the Act will be applied to investments by foreign state owned or state influenced enterprises (SOEs) into Canada's critical minerals industries or their supply chains. The policy is not intended to be applied retroactively.  
Applications for acquisitions of control of a Canadian business involving Critical Minerals by a foreign SOE will only be approved on an exceptional basis. Factors to consider in the assessment of the impact of foreign or SOE investment on national security include:

  • the size, scope and location of the Canadian business;
  • the nature and strategic value to Canada of the mineral assets or supply chain involved;
  • the degree of control or influence an SOE would likely exert on the Canadian business, the supply chain and the industry;
  • the effect the transaction may have on the ability of Canadian supply chains to exploit the asset or access alternative sources (including domestic supply); and
  • the current geopolitical circumstances and potential impact on allied relations.

This is in addition to the enhanced scrutiny that is already applied under the revised National Security Guidelines under the Act that were announced in March 2021.

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