Ottawa adds 45 days to national security review of TMAC-SD Gold sale

“This was very much expected”

The Chinese gold-mining company Shandong Gold Mining Co. Ltd. wants to buy TMAC Resources Inc., which owns the Hope Bay goldfield, located about 125 km southwest of Cambridge Bay, but the sale is subject to a national security review, now underway. (File image)

By Jane George

Canada’s national security review for the sale of TMAC Resources Inc. to Shandong Gold Mining Co. Ltd. has received an extension of up to 45 days, the company said Friday, Nov. 27.

In October, the federal cabinet ordered a national security review of the proposed sale of TMAC, which owns the Hope Bay gold mine in western Nunavut, to the Chinese state-owned SD Gold.

Jason Neal, TMAC’s president and CEO, told Nunatsiaq News that the federal government had 45 days for full national security review and then could seek a further 45 days.

“So this was very much expected,” Neal said.

The two companies want to seal the proposed sale, first announced in May, by Feb. 8, 2021.

“Feb. 8 is outside date of arrangement agreement and has not changed,” Neal said.

Under the Investment Canada Act, the federal government has been looking at whether the deal with SD Gold is likely to increase employment in Canada, as well as its economic and other impacts.

The act also allows Ottawa to review a transaction for national security reasons.

Other hurdles to the proposed purchase have been cleared. In June, TMAC received a final order from the Ontario Superior Court of Justice approving the sale to SD Gold.

But until the government completes the federal review, the sale, approved by 97 per cent of TMAC’s shareholders at a special meeting held in June, remains uncertain.

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(4) Comments:

  1. Posted by Max Johnson on

    I find it interesting that apart from significant security issues, Canada is allowing any foreign company to buy its mineral wealth. As we, as a country, borrow more and more money, surely the concept of repaying these loans by selling the gold rather than simply gold-bearing bits of the land, should take precedence over a single sale of such rights to a Chinese business.

  2. Posted by The Old Trapper on

    TMAC is not a large mining company. There is no reason that Canadian gold/mining companies could not buy this asset from TMAC instead of this going to a STATE OWNED CHINESE company – read CHINESE COMMUNIST PARTY.
    Just on human rights issues alone we should demand that Michael Kovrig and Michael Spavor are released before this is even considered by our National Security Review. They have been held for almost TWO YEARS on trumped up charges because Canada detained Meng Wanzhou an executive of telecom giant Huawei (and daughter of the owner) on behalf of an extradition request from the U.S.
    Now I happen to think that the U.S. request was Donald Trump B.S. and pressure tactics with Canada caught in the middle, but it was all done legally and is going (much too slowly) through the courts.
    As far as China owning our resources there really does need to be a time when as a country we stand up and say, ENOUGH! Hopefully our federal government will agree with the majority of it’s citizens.

    • Posted by Northern Miner on

      I 100% agree with you Old Trapper. Selling TMAC to the Chinese Communist Party is a terrible idea. Canada should be standing up more against Chinese human rights abuses and pushing back against their aggressive agenda to increase their influence in the world – in this case in the arctic and the northwest passage.

    • Posted by I also agree on

      I also agree with the comments above. Much as I would like to see this deposit developed – and the world needs gold such as this taken from the ground – I do also believe that Canada needs to stand firm with the Chinese government and refuse this deal. Two of our own are in prison in China on bogus charges. Why should the Chinese government get access of Canada’s gold? and before releasing these two?

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