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 feud.
TMAC Resources Inc. owns the Hope Bay gold mine in the northern territory of Nunavut, an operation that includes a port and air strips. Shandong, an acquisitive state-backed metal producer, agreed to buy the Toronto-based company for about $150 million in May. In October, TMAC received notice the government had ordered a national security review.
The Canadian miner said late Monday an order had been issued under the Investment Canada Act for Shandong not to proceed with the takeover. Shandong confirmed the rejection in a statement Tuesday, citing a decision made for the "purpose of safeguarding national security.”