(Yicai Global) Feb. 8 -- Chinese mineral resource developers Chengxin Lithium Energy and Zangge Mining have yet to divest their investments in Canada’s critical minerals miners, despite being instructed to withdraw by the Canadian government in November last year on national security concerns, The Paper reported yesterday.

Chengxin Lithium and Zangge both claim there is room for negotiation, the report said. Of the three Chinese companies given 90 days to sell their equity in Canadian miners by Innovation, Science and Economic Development Canada on Nov. 2, only Sinomine Resources Group has done so so far, it added.

Chengxin Lithium, which owns a majority stake of 19.8 percent in Lithium Chile, said it has carried out several rounds of negotiations with the Canadian government and, judging from their attitude, it feels the situation might ease up. Unit Chengze Lithium International still retains its shares in Calgary-based Lithium Chile, which owns 13 salt lake lithium extraction projects in Chile and Argentina, and is not ready to sell, it added.

Zangge said that it has not received a follow-up notice and its subsidiary Zangge Mining Investment (Chengdu) still holds its 14.1 percent stake in Canada's Ultra Lithium that owns the development rights to the Laguna Verde salt lake lithium project in Argentina and the firm is not prepared to let it go.

Sinomine, though, sold its entire 5.7 percent equity in Canada's Power Metals to Australia’s Winsome Resources for CAD2 million (USD1.5 million) in December last year. Those directors that were nominated by unit Sinomine (Hong Kong) Rare Metal Resources have resigned. The project was still at the initial exploration stage and so the sale will not impact the company’s financial position, it added.

Together, the three companies made investments of CAD40.1 million (USD30 million) between 2021 and 2022 in Canadian miners. Zangge paid CAD4.1 million for its equity in Ultra Lithium, Chengxin Lithium shelled out CAD34.5 million to be part of Lithium Chile and Simomine CAD1.5 million for its share of Power Metals.

The Canadian government brought in new restrictions on foreign investment in critical minerals, which are those used in mobile phones, electric cars, solar cells and other emerging technologies, in October last year.

Other Chinese miners with lithium assets in Canada include Ganfeng Lithium, which holds a 11.1 percent stake in Lithium Americas Corp., Tibet Summit which wholly owns Lithium X Energy Corp. and Zijin Mining which is the sole owner of Neo Lithium Corp.

Editor: Kim Taylor