Chinese company’s deal to buy Arctic gold mine facing national security review in Canada

TMAC Resources’ Hope Bay mining project is located 125 kilometres southwest of Cambridge Bay, Nunavut, and about 700 kilometres northeast of Yellowknife. (Submitted by Alex Buchan/TMAC)
TMAC Resources Inc. says the federal cabinet has ordered a national security review of the proposed sale of the Canadian gold miner to a Chinese company.

Shandong Gold Mining Co. Ltd. announced a deal in May to buy TMAC, owner of the Hope Bay mining project in Nunavut, for $230 million.

The friendly deal has received Chinese regulatory approvals and TMAC shareholders voted in favour of it in June.

The cabinet national security review, under the Investment Canada Act, raises concerns that the deal may not be able to close by a Feb. 8, 2021, deadline to complete the sale.

TMAC says it expects the deal to close in the first quarter of 2021 if it is approved.

But it noted Ottawa may not complete the regulatory review process and provide approval by the deadline.

Related stories from around the North:

Canada: Canadian Indigenous leaders ‘losing faith’ in environmental protection amid budget cuts, CBC News

Greenland/Denmark: Greenland and Denmark finalize cooperation agreement on marine pollution response, Eye on the Arctic

Finland: Miners hunting for metals to battery cars threaten Finland’s Sámi reindeer herders’ homeland, Yle News

Norway: Climate change hits back at Svalbard, coal mine flooded by melting glacier in Norway, The Independent Barents Observer

United States: Conservation groups sue government over Alaska mining road, The Associated Press

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