A Chinese state-owned company has been blocked from purchasing a goldmine in the strategic Canadian Arctic in a move that is expected to plunge already frosty relations between the two countries into a deep freeze.
In May Shandong Gold Mining had offered C$230 million ($179 million) to purchase TMAC Resources, which owns the Hope Bay mine in Nunavut, about 100 miles north of the Arctic Circle. The offer was accepted by the shareholders. However, last Monday TMAC, which is based in Toronto, announced that the government had blocked the takeover and Shandong said that the decision was made for the “purpose of safeguarding national security”. Deals of this kind are subject to the Investment Canada Act, under which they are evaluated for security implications.
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