The minister of business and mineral sources mentioned he expects Saudi’s state-backed funds to purchase stakes in Canadian metals companies because the Center Japanese kingdom expands its affect within the world mining business. Canada’s guidelines concentrating on sure international buyers received’t get in the way in which, he mentioned.
Canada’s federal authorities launched new guidelines in 2022 that added a layer of regulatory scrutiny to investments by international state-owned entities. Such offers will solely be accepted “on an distinctive foundation” in the event that they’re thought-about a web profit to Canada.
The more durable stance has thwarted some efforts by Chinese language state-backed companies to spend money on Canadian firms, although it didn’t stop two Saudi entities from shopping for a ten% stake in Vale SA’s base metals unit, which operates Canada’s largest nickel mines.
Saudi Arabia has sought to increase its entry to essential minerals as the worldwide vitality transition accelerates, whereas constructing a metals-processing business that might make it extra engaging for worldwide miners to take advantage of its mineral deposits — a central pillar of the dominion’s efforts to diversify its financial system away from oil.
Alkhorayef mentioned his Canadian go to is partly to entice Canadian mineral explorers to assist seek for key metals like copper inside the Arabian peninsula.
The Saudi delegation plans to satisfy with authorities officers in Ottawa together with Business Minister Francois-Philippe Champagne and Pure Assets Minister Jonathan Wilkinson, Alkhorayef mentioned.
Canada-Saudi Arabia relations have been on the mend since a diplomatic feud broke out in 2018, when the Saudis expelled Canada’s ambassador after the Canadians criticized the dominion’s document on human rights.
(By Jacob Lorinc)