OTTAWA --
The pending takeover of a Canadian lithium mining firm by a Chinese language state-owned firm raises no nationwide safety issues, federal Liberals argued Thursday.
Liberal MP Andy Fillmore, parliamentary secretary to Business Minister Francois-Philippe Champagne, informed a Home of Commons committee that the Business Division reviewed final fall the proposed takeover of Neo Lithium Corp. by China's Zijin Mining Group Ltd.
That evaluate concluded that Neo Lithium is "actually not a Canadian firm," he informed the business committee, describing it as an Argentine firm with administrators in the UK and solely three Canadian workers "on paper."
He mentioned the one cause Neo Lithium "had any Canadian toehold by any means," was to get on the Toronto Inventory Trade in a bid to boost cash for what Fillmore known as an "more and more doubtful showing" mine improvement venture in Argentina.
Furthermore, he mentioned that venture includes lithium carbonate, not the lithium hydroxide used to fabricate batteries which might be essential for electrical automobiles.
For these causes, Fillmore mentioned a proper nationwide safety evaluate of the takeover was deemed pointless.
"These are the issues they discovered, proper? That actually it isn't a related lithium to Canada's nationwide safety pursuits and it is probably not a Canadian firm."
Nonetheless, Conservative MP Ed Quick, who had known as for the emergency committee assembly to search out out why no formal safety evaluate was achieved, mentioned it is "simply false" to say Neo Lithium isn't a Canadian firm.
And he famous that the corporate's personal web site touts the mine as "the pre-eminent lithium brine asset on the planet" to satisfy surging world demand for electrical automobile batteries.
"It goes with out saying however bears restating that essential minerals equivalent to lithium are a strategic asset, not just for Canada however for the world, and can play a essential position in driving our future prosperity and in assembly our environmental targets," Quick mentioned.
Whereas the mine in query is in Argentina, Quick argued that it's incumbent on Canada and different "free-trading, rules-following allies" to make sure the worldwide essential minerals business isn't monopolized by one nation, particularly one whose pursuits "are generally hostile towards ours."
China at the moment dominates the world's provide of lithium and batteries.
Conservative MP Tracy Grey additional argued that lithium carbonate might be transformed into lithium hydroxide to be used in batteries.
However Fillmore countered that the conversion course of includes further prices and "vital environmental implications," which is why lithium hydroxide is most popular.
"I might in all probability make a satisfactory hat utilizing my socks however I would a lot slightly put on a hat," he mentioned.
Thursday's assembly was known as to contemplate a movement by Quick, calling for the committee to carry six conferences to discover the Neo Lithium takeover and whether or not a proper nationwide safety evaluate ought to have been carried out.
Ultimately, committee members unanimously agreed to a Bloc Quebecois compromise to carry two conferences on the topic subsequent week. The steering subcommittee, which can be to satisfy subsequent week to set the committee's agenda for the approaching months, might resolve to schedule extra conferences on Neo Lithium.
This report by The Canadian Press was first printed Jan. 20, 2022.
An individual makes a video name from their cellphone as they go a pile of snow in entrance of Parliament Hill's Centre Block in Ottawa after a winter storm on Monday, Jan. 17, 2022. THE CANADIAN PRESS/Justin Tang
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