The Canadian government requires Chinese mining companies to withdraw three Canadian mining companies, including China Mining Resources, Shengxin Lithium Energy and Zangge Mining, to sell their stakes in Power Metals, Chilean Lithium and Super Lithium, respectively.
Government ministers shouted, but no specific policies have been implemented. Judging from the replies of various companies circulating on the Internet, this incident should be understood as facing stricter scrutiny in the acquisition process of these projects, and failed to pass the examination, so relevant investments must be divested, but existing projects such as Tanco , the company said it will not be affected, that is, the review is not retrospective. If the above information is correct, then this incident will have little impact on the production and operation of the three companies, Zangge Mining, China Mining Resources and Shengxin Lithium Energy Zhejiang.
Following Australia, Canada has taken a tough stance that the investment threshold for lithium resources has been greatly increased, and competition between countries has intensified. Judging from the rhythm of supply and volume in the past three years, the mining efficiency of Chinese companies is significantly higher than that of overseas companies. In addition to Africa/South America, the core of China’s lithium mines is Australia & Canada. Therefore, the progress of global lithium resource supply may slow down, supporting the sustainability of lithium prices and improving the status of domestic resources.
Overall, the first benefit is for domestic mining companies, such as Rongjie, Yongxing Materials and so on. But in fact, it also helps to improve the valuation of the entire sector. With fewer mines provided by development, the price will rise. $Tianqi Lithium(SZ002466)$ $Ganfeng Lithium(SZ002460)$
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