Shandong Gold's Proposed Acquisition of TMAC in the High Arctic
In May 2020, Chinese state-owned Shandong Gold Group was attempting to acquire the Canadian gold mining company TMAC Resources, whose gold mines were located in the High Arctic. If this acquisition took place, it would be the first time Shandong Gold Group would operate a gold mine outside of China. However, it would be a challenge for Shandong Gold Group to operate a mine in such a hard-to-navigate polar environment. As well, there were other lingering questions: How would the company handle the relationships with the indigenous Inuit people during the development stage of the project? Would Shandong Gold Group's potential acquisition of TMAC Resources be successful, considering the Canadian government's recent strengthening of its reviews of foreign acquisitions of Canadian companies? Would Shandong Gold Group's state-owned identity increase the uncertainty of this potential transaction?