Just days after the Canadian government introduced tougher rules on foreign investments in Canadian mining companies, the government has ordered three Chinese firms to divest their interests in critical minerals companies, due to national security concerns.

According to reports, Sinomine Rare Metals Resources, Chengze Lithium International, and Zangge Mining Investment were all ordered to exit their holdings in Canadian mineral mining companies.

In a statement, Canada’s Industry Minister, Francois-Philippe Champagne said the divesture was ordered by the government after “rigorous scrutiny” by the national security and intelligence community of Canada’s minerals sector.

Champagne said, “While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad.”

Ottawa has announced last week that it was going to pursue a policy designed to build a resilient critical minerals supply chain with aligned partners, while at the same time protecting the sector from being controlled by foreign state-owned entities.

Champagne went on, “The federal government is determined to work with Canadian businesses to attract foreign direct investments from partners that share our interests and values.”

Canada has extensive reserves of critical minerals such as nickel and cobalt, which are expected to see exploding demand in the coming decades. To secure the supplies of such minerals, Canada announced a new partnership with the US, UK, and several other countries, to secure mineral supplies amid a rising demand in the global marketplace.

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