Australia Allows Chinese Purchase of Gold Miner While Canada Says ‘No’
China’s second-largest state-owned gold mining company Shandong Gold has won a bidding war to gain control of Australian gold miner Cardinal Resources.
This comes after Five Eyes’ partner Canada blocked Shandong from acquiring a local mine in the strategically important Arctic Circle.
Over a seven-month period, the state-owned Shandong Gold vied mainly with Russian firm Nordgold for control of Perth-based mining company Cardinal.
In June, Cardinal was valued at 46 cents per share. However, by last week Shandong finalised a deal to buy the company for over AU$580 million at $1.075 per share, providing a substantial windfall to shareholders.
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Canadian Prime Minister Justin Trudeau’s government rejected a plan by China’s Shandong Gold Mining Co. to acquire a gold miner that operates in the Canadian Arctic, potentially inflaming a diplomatic
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By Cabinet order, the Canadian government has blocked the agreed
acquisition of TMAC Resources Inc. (owner of the Hope Bay gold mine
in Nunavut) by Chinese state-owned Shandong Gold Mining Co. Ltd
under the national security review (NSR) provisions of the
What you need to know
The block in
Shandong/TMAC
follows the high profile 2018 refusal of CCCI s bid for Aecon
Group and is consistent with a recent trend in heightened Canadian
scrutiny of inbound state-owned or state-influenced investment,
particularly from China. This is perhaps unsurprising given the