Canada Will Review Trump Minerals Deals Carefully, Minister Says

Industry Minister Melanie Joly said Canada should evaluate the U.S. government’s investments in the country’s critical mineral companies “on a case-by-case basis” at a time when the Trump administration is pursuing a nationalist economic policy.

“What we’re seeing in the United States is certainly the emergence of greater economic nationalism, including the government taking stakes in companies,” Joly told media at an event in Montreal on Friday. he said. “Every government in the world needs to adapt to this, and that’s what we will do.”

The secretary’s comments come just days after the Trump administration announced it would acquire a 10% stake in Trilogy Metals Inc. as part of a $35.6 million investment to support critical mining projects in Alaska. The United States also agreed last month to buy a stake in Lithium Americas Corp., which is developing the Thacker Pass lithium project in Nevada. Both companies are headquartered in Vancouver.

Joly declined to comment specifically on the two transactions, which should fall under federal rules on investments by state-owned enterprises and foreign governments. He said the government would evaluate deals “on a case-by-case basis through the application of the Canada Investment Act.”

But it’s unclear how much clout the Canadian government actually has to stop the Trilogy or Lithium Americas deals, or whether it even wants to.

“If Canada struggles and these companies have to relocate to access U.S. government funds, I think they would probably do so in a hurry,” said Brian Laks, a partner at Old West Investment Management, which has investments in both miners.

Over the past few years, Canada has made it harder for foreign state-owned firms to acquire mining companies. The government under former Prime Minister Justin Trudeau blocked attempts by Chinese entities to take large stakes in companies with lithium and copper projects.

“We have a challenge now: We need to find ways to be a sovereign country while also attracting capital and being able to control many of these critical minerals and where they go,” Joly said. “So we are in ongoing discussions with different governments.”

With the help of Jacob Lorinc.

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