The Canadian government is refusing to allow the sale of TMAC Resources and its Hope Bay gold mine to Shandong Gold Mining, a Chinese state-owned company.

Ottawa announced the results of its national security review on Monday. Shandong had offered $230 million to purchase TMAC in May, which was later accepted by TMAC shareholders, but the Kitikmeot Inuit Association never endorsed the deal.

Shandong Gold Mining’s bid to take over operations at the Hope Bay gold mine, 125 km southwest of Cambridge Bay, will not be approved by the federal government.
photo courtesy of TMAC Resources

Jason Neal, president and CEO of TMAC, stated, “While we are disappointed with the outcome, we are very pleased that
TMAC achieved significant operation improvements at Hope Bay. We will continue to build on these improvements while considering options to manage our balance sheet. We continue to believe that the Hope Bay gold belt holds substantial value with long life production potential
that presents a significant development opportunity.”

TMAC had a $71.5 million cash balance as of Sept. 30 and is generating positive cash flow, Neal noted. He expects that the company will have sufficient financial resources to fund the 2021 sealift, but he projects TMAC will fall short of being able to repay maturing debt that is due on June 30, 2021.

Neal added, “I would like to thank the TMAC employees and contractors for their hard work and dedication this year as we have dealt with the unprecedented Covid-19 pandemic and the uncertainties of the transaction, while concurrently improving our safety performance and productivity. I would also like to thank the Inuit communities and leadership of Nunavut, our business partners and other stakeholders for their patience during the regulatory review process.”

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Derek Neary

Derek Neary has been reporting on developments in the North for 18 years. When he's not writing for Nunavut News, he's working on Northern News Services' special publications such as Opportunities North,...

19 replies on “Ottawa rejects sale of Hope Bay to Chinese mining company”

  1. Jason Neal is ‘disappointed’ that a piece of the country won’t be sold to an enterprise owned by a brutal authoritarian regime that has a horrible environmental track record, and kidnaps Canadians as political prisoners.

    Noted.

  2. I am very pleased the purchase did not go through to chinese. We have to protect our northern territories.

  3. I’m very pleased that the sale did not go through one thing that trudeau didn’t control. It belongs to the people of the region!

  4. Business is business. That’s another example of politicizing business while advocating fair market economy and competition.

      1. Especially with China. They are about control. And they try to enter through the back door.
        Jason Neal lost a lot of money. Too bad.

  5. The same should be for other countries, like Australia, Finland, Russia…etc you get the picture. Then more good jobs stay managed by Canadians.

  6. Good news, victory for Canadian.
    A Chinese with PLA background bought a big piece of land , size as big as half of Hong Kong island in Texas , American have to keep watching, what his is going to do there.

  7. Why are we allowing the Liberal government to take the glory of stopping this sale to the Chinese ? My understanding is , that it was the Inunavut people who were the ones to stop the sale ? Am I right ? And if so, why is the truth not being told ?

  8. We do not need to mine more gold! We can recycle what’s already been mined – sitting in bank vaults, or decorating our bodies.

  9. Good on the Lirerals , deciding to take’s CSIS ‘s and the Inuit’s advice over short sighted political hacks.
    Chinas “big dog makes the rules” foreign policy and ever frightening ambitions to spread their authoritarian system of thuggery around the world MUST be confronted head on.

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