Wednesday, August 27, 2025

Chinese Mining Firm Challenges Canadian Security Review of Peruvian Gold Mine Acquisition

Jinteng Mining, a subsidiary of Chinese state-owned Zijin Mining Group has filed for judicial review against Canada’s decision to potentially conduct a national security review of its purchase of a Peruvian gold mine. 

In May 2023, Jinteng Mining agreed to buy Pan American Silver Corp‘s (NYSE: PAAS) La Arena gold mine in Peru for $245 million, with a possible additional $50 million payment. Shortly after, Canada’s Industry Minister François-Philippe Champagne indicated the deal “could be injurious to national security” and might require formal review under the Investment Canada Act.

Jinteng claims in its Federal Court application that Minister Champagne lacks jurisdiction to order such a review. The company argues that since the mine assets are in Peru and not operated from Canada, they don’t qualify as a “Canadian business” under the act’s definition. Jinteng maintains the minister’s decision is based on an unreasonable interpretation of the law.

This case presents a significant test of Canada’s ability to scrutinize foreign investments in Canadian companies with overseas assets. It comes amid increasing concerns about Chinese acquisitions in critical mineral sectors globally. While gold isn’t classified as a critical mineral by Canada, the La Arena site also includes copper deposits, which are on the critical list.

National security experts suggest this could be part of a broader Chinese strategy in Latin America. The Canadian government has recently toughened its stance on foreign investments from “hostile states,” particularly those involving state-owned enterprises.

The outcome of this judicial review could have far-reaching implications. If successful, it might create a precedent for structuring deals to avoid national security reviews through “creative lawyering,” Aaron Shull, of the Centre for International Governance Innovation, told The Globe and Mail.

The Canadian government declined to comment on the ongoing legal matter, pointing to the confidentiality provisions of the Investment Canada Act. 


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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