Canada Disappoints Investors, Exits High-Investment Deals

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INVESTMENT,RESOURCES,CANADA

Canada's increasing reluctance towards high-investment transactions, driven by both government restrictions and indigenous overreach, has led to the departure of Solaris Resources. The company cancelled a C$130 million investment from China's Zijin Mining after failing to secure approval under the Investment Canada Act.

2024 has been a year of change. It has been the year in which the world held the most elections. We've seen commodity prices fall to their lowest levels in some key markets (lithium) and to their highest in others (gold, antimony). Sentiment is shaky as we go into 2025. Gold prices are expected to continue to gain, while US dollar strength depends a lot on the tariffs which will be put in place.

Political risk is on the agenda, as miners and investors negotiate the new wave of resource nationalism, which stretches from Mali to Germany. It has never been more important to have the right information at the right time. With that view, here is the year in review from the whole team. North AmericaCanada shuns high-investment transactionsPaul HarrisCanada has disappointed investors this year | Credits: BUTENKOV ALEKSEI, via ShutterstockAs Canada looks to exploit its critical minerals endowment the North American nation is increasingly shunning high-interest transactions through government overreach on the one hand and laissez-faire in allowing first nation overreach on the other. Solaris Resources is exiting Canada after it had to nix a C$130 million strategic investment by China's Zijin Mining in May after a failure to obtain a successful review under the Investment Canada Act. From January 2025, Solaris will have no office or executives in Canada. Keeping Chinese investment out of Canada is one thing, but Solaris has no projects in the country—its Warintza copper-gold deposit is in Ecuador—and so is an extraterritorial action. Ecuador's president Daniel Noboa likely mentioned this during a meeting with Canada's premier Justin Trudeau during their March meeting on the sidelines of the Prospectors and Developers Association Conference in Toront

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