Mining Mindset Clips: Developed Nations Guard Assets Like Never Before – Myroslav Chwaluk

Myroslav Chwaluk:
Developed countries are increasingly protecting their resources in ways not seen in the past, particularly to safeguard domestic supply chains. In Canada, for example, there is a legislative framework that allows for the review of incoming transactions under national security provisions. Historically, this mechanism was rarely used, but in recent years, especially with the growing emphasis on protecting critical minerals, its application has become more frequent.

Canada maintains a list of critical minerals, and any transaction involving these minerals now faces much stricter scrutiny. This has introduced significant uncertainty into such transactions. Companies must lay the groundwork carefully, though the outcome of government reviews often remains beyond their control.

Currently, the largest producer of critical minerals is China, and there are also conflict minerals emerging from regions in Africa. China’s outbound investments, which historically attracted little scrutiny, are now under intense examination—particularly investments by Chinese state-owned enterprises. These include smaller strategic investments and outright purchases of assets. The Canadian government, for example, has increasingly intervened, sometimes even reversing transactions that have already been negotiated, approved by shareholders, and incurred significant costs.

Moreover, Canada’s approach now extends to assets owned by Canadian companies but located outside the country. These assets are still subject to Canadian jurisdiction under national security reviews. For instance, Canada might intervene to protect a critical mineral asset in Argentina, Chile, or Africa. This posture marks a significant shift in policy compared to just five years ago, demonstrating a growing emphasis on resource security and geopolitical strategy.