Chinese enterprises only want to buy a mine, but Canada starts to worry about Arctic sovereignty

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 Chinese enterprises only want to buy a mine, but Canada starts to worry about Arctic sovereignty


Screenshot of Wall Street Journal report

According to the official website of Shandong gold group, the video signing ceremony between Shandong gold and temac was held in Jinan, China and Toronto, Canada on May 8. After the completion of the transaction, Shandong gold will hold 100% equity of temec through direct and indirect means.

Temac is mainly engaged in the exploration, mining and production of gold resources. Its gold mine is located in the Arctic circle. Its core asset, hope Bay project, is a high-grade and large-scale gold mine in the Arctic circle. It was completed and put into operation in 2017, and currently produces about 9.5 tons of gold.

Temac shareholders approved the acquisition last month. However, the acquisition still needs to be reviewed by the Canadian government. They have the final decision on the acquisition. At present, members of the Liberal Party government are silent on this.

Canadian opposition parties and former government officials repeatedly hyped the Chinas Arctic strategy, claiming that the Canadian government should stop the acquisition in order to slow down Chinas growing control over strategic minerals.

This deal shouldnt go ahead, says Richard Fadden, a national security adviser in the Trudeau government and the government of Stephen Harper, a former Canadian Prime Minister. They are clearly competitors, and I think we have to think about that every time they want to buy.

Eric Miller, head of redopotomak strategic group, a consulting firm, claimed that temacs business location in the Arctic was particularly sensitive, and many countries were scrambling to enter the region, there are rich resources, and China is a country in urgent need of resources, and they are looking for strategic mineral resources..

The Wall Street Journal reported that global powers, including the United States, Russia and China, predicted that with the melting of polar ice, the Arctic Ocean would become an important shipping route, shortening the voyage between Asia and Europe.

Heather Conley, a foreign policy analyst at the center for strategic and international studies, a think-tank in Washington, claims that China has been promoting investment in the Arctic in an orderly manner, hoping to protect its access to the Arctic as an alternative shipping route, rich mineral and energy resources, and alternative food sources.

She also claimed that a single acquisition such as temac might not be worrying at first sight, but that this model would be even more worrying as China strengthens its use of Arctic waters and establishes global dominance in industries such as mining. In such an environment of such mistrust, it will be very difficult to distinguish between what is strategic and what is benign.

Lisa Murkowski, chairman of the U.S. Senate Energy and natural resources committee and Republican Senator Lisa Murkowski of Alaska, said that China was consolidating its control over the supply of Arctic minerals and precious metals by investing in countries bordering the Arctic.

In the case of Sino Canadian enterprise acquisition, the US side should also point fingers and exaggerate the China threat wantonly. The purpose is to put pressure on Canada. A spokesman for the committee said that although they did not have any regulatory authority over the Canadian acquisition, they would continue to follow up on reports of temacs acquisition.

Shandong Gold Group explained that they were only interested in the commercial potential of temac. Jack Yue, its head of corporate development and global investment, said bluntly that it was just a simple gold mining deal. We are a business focused company with a high reputation in the Canadian mining industry.

A spokesman for Canadas minister of innovation, science and industry in charge of foreign investment law only said that the Departments review of the deal would weigh the benefits it would bring to the Canadian economy. He declined to comment on other aspects.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }Although Canadian politicians and the U.S. continue to hype and threaten the acquisition, the acquisition of Shandong gold group is the only way to save the company. Temac CEO Neil made it clear that if the acquisition is not approved by the Canadian government, the company will have little way to raise enough funds to repay its debts and maintain its operations. Some analysts believe that temacs mineral resources are very attractive, but the development cost is high due to the geographical location. Neil said frankly, which is why only Shandong Gold Group became the only bidder after temec talked with 76 companies on the acquisition. Shandong Gold Group has the opportunity and ability to make long-term investment, Neil said. Its a good business for everyone. This is the focus of our attention. This seems to be the best deal temac can get, Barry Allan, a securities analyst at the Bank of Canada, said in an earlier report to clients Source: observer.com editor in charge: Li Xi_ NN2587

Although Canadian politicians and the United States continue to hype and threaten the acquisition, the acquisition of Shandong gold group is the only way to save the company. Temac CEO Neil made it clear that if the acquisition is not approved by the Canadian government, the company will have little way to raise enough funds to repay its debts and maintain its operations.

Some analysts believe that temacs mineral resources are very attractive, but the development cost is high due to the geographical location. Neil said frankly, which is why only Shandong Gold Group became the only bidder after temec talked with 76 companies on the acquisition.

Shandong Gold Group has the opportunity and ability to make long-term investment, Neil said. Its a good business for everyone. This is the focus of our attention.

This seems to be the best deal temac can get, Barry Allan, a securities analyst at the Bank of Canada, said in an earlier report to clients