CBC News
Posted: Dec 14, 2011 10:02 PM CST
Last Updated: Dec 14, 2011 9:59 PM CST
A Saskatchewan MP, Brad Trost, has introduced federal legislation that would allow for more foreign investment in Canadian uranium mines.
Trost's bill would allow foreign investors to purchase and own the entirety of Canadian uranium mines and properties. Current rules limit foreign interest to a maximum of 49 per cent.
"This is a policy that has been supported by not just the current government of Saskatchewan but previous NDP and Conservative governments in Saskatchewan," Trost said Wednesday. "It would increase jobs and investment in our province and throughout the country."
Saskatchewan's north is home to most uranium mining activity in the country.
Trost said a change in ownership rules would not lead to any security risks because uranium is a highly regulated commodity requiring licenses to mine and export.
Saskatchewan recently said it would welcome eased ownership rules.
Last week the province's energy and resources minister, Bill Boyd, noted the federal rules date to the 1950s.
"We think it has had an impact on investment," Boyd said. "If there were a change, we think we would see further investment in Saskatchewan, we believe that that would be a good thing."
http://www.cbc.ca/news/canada/saskatchewan/story/2011/12/14/sk-uranium-mine-ownership.html
1 comment:
A bill has been introduced by a Saskatchewan MP that would allow a foreign entity to own all of a Canadian uranium mine. In the short-term, investments would definitely increase which is what the Saskatchewan government wants. However if all of the uranium mines were owned by foreign investors, Canada would have no say in who they sold uranium to which could have many social and international repercussions. In the short-term, the initial purchase of the mine would be high, but afterwards there is little room for more investment to increase other than through taxes. There is no longevity to the money they earn in selling all the uranium mines in Canada. For now, it is up to the government to decide whether this short term foreign investment outweighs the disadvantages.
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