No national security issue in Chinese takeover of Canadian lithium company: Liberals

OTTAWA - The pending takeover of a Canadian lithium mining firm by a Chinese language state-owned firm raises no nationwide safety considerations, federal Liberals argued Thursday.

Liberal MP Andy Fillmore, parliamentary secretary to Business Minister François-Philippe Champagne, instructed a Home of Commons committee that the Business Division reviewed final fall the proposed takeover of Neo Lithium Corp. by China’s Zijin Mining Group Ltd.

That overview concluded that Neo Lithium is “actually not a Canadian firm,” he instructed the business committee, describing it as an Argentine firm with administrators in the UK and solely three Canadian workers “on paper.”

He mentioned the one motive Neo Lithium “had any Canadian toehold in any respect,” was to get on the Toronto Inventory Change in a bid to boost cash for what Fillmore referred to as an “more and more doubtful showing” mine growth venture in Argentina.

Furthermore, he mentioned that venture entails lithium carbonate, not the lithium hydroxide used to fabricate batteries which are essential for electrical autos.

For these causes, Fillmore mentioned a proper nationwide safety overview of the takeover was deemed pointless.

“These are the issues they discovered, proper? That the truth is it’s not a related lithium to Canada’s nationwide safety pursuits and it’s not likely a Canadian firm.”

Nonetheless, Conservative MP Ed Quick, who had referred to as for the emergency committee assembly to seek out out why no formal safety overview was completed, mentioned it’s “simply false” to say Neo Lithium isn't a Canadian firm.

And he famous that the corporate’s personal web site touts the mine as “the pre-eminent lithium brine asset on the planet” to satisfy surging world demand for electrical automobile batteries.

“It goes with out saying however bears restating that essential minerals akin to lithium are a strategic asset, not just for Canada however for the world, and can play a essential position in driving our future prosperity and in assembly our environmental aims,” Quick mentioned.

Whereas the mine in query is in Argentina, Quick argued that it's incumbent on Canada and different “free-trading, rules-following allies” to make sure the worldwide essential minerals business isn't monopolized by one nation, particularly one whose pursuits “are typically hostile towards ours.”

China at the moment dominates the world’s provide of lithium and batteries.

Conservative MP Tracy Grey additional argued that lithium carbonate may be transformed into lithium hydroxide to be used in batteries.

However Fillmore countered that the conversion course of entails extra prices and “vital environmental implications,” which is why lithium hydroxide is most well-liked.

“I may most likely make a satisfactory hat utilizing my socks however I’d a lot fairly put on a hat,” he mentioned.

Thursday’s assembly was referred to as to contemplate a movement by Quick, calling for the committee to carry six conferences to discover the Neo Lithium takeover and whether or not a proper nationwide safety overview ought to have been performed.

Ultimately, committee members unanimously agreed to a Bloc Quebecois compromise to carry two conferences on the topic subsequent week. The steering subcommittee, which can also be to satisfy subsequent week to set the committee’s agenda for the approaching months, may determine to schedule extra conferences on Neo Lithium.

This report by The Canadian Press was first printed Jan. 20, 2022.