Canada’s new foreign investment rules: What critical minerals miners need to know
New Investment Canada Act rules will require certain types of minority investments into a mandatory pre-closing filing regime.
Ottawa is set to introduce new Investment Canada Act rules for critical minerals companies, requiring certain minority investments to undergo a mandatory pre-closing filing regime. Chris Hersh, a partner at Toronto-based law firm Cassels Brock & Blackwell in their Competition & Foreign Investment Group, explained to MINING.COM that these changes could significantly impact miners and developers relying on strategic investors for financing various stages of project development.
The legislation was enacted in 2024, with key provisions set to take effect early in 2027. Under the new rules, certain investments by non-Canadians in businesses operating in sensitive sectors will require notification before the transaction can be completed. This applies to investments that do not involve acquiring control of a Canadian business and target assets or governance rights.
Critical minerals companies, already classified as a national security priority under Canada's foreign investment policy, may be particularly affected by the new regime. Companies must proactively consider the new regime's requirements in their business planning, as it expands mandatory filings to certain non-control investments involving access to material non-public technical information, material assets, or special governance rights.
The regime could introduce delays in financing timelines, with transactions subject to a 45-day national security screening period followed by a potentially lengthy review if concerns arise. Canadian companies engaged in prescribed activities may need to adapt their financing strategies, potentially using staged financing approaches to navigate the new requirements.
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